A gold ETF tracks gold prices without the associated expenses. As an exchange-traded fund, it gives investors indirect exposure to gold price movements. Either by following the price of gold bullion or investing in gold futures contracts. Many investors who wish to hedge against inflation, market turbulence, or geopolitical risks find gold attractive. Having a gold ETF can be a low-cost option for gold investing in these uncertain times. But you have to note that the price of gold has its swings, so ETFs that track gold sometimes exhibit volatility.
The price of gold has risen recently. As a result, the benchmark S&P GSCI Gold Index that tracks gold ETFs has increased by 4.6% year over year and is close to the S&P 500's one-year returns. This article will highlight three of the best performing gold ETFs. The rating is based on their performance over the past year. Having done due diligence on these gold ETFs, I can highly recommend to investors who are looking to beat the market during this period of time.
1 - SPDR Gold MiniShares Trust (NYSE: GLDM)
Investors who want a convenient and cost-effective holding in gold should look towards GLDM. The objective of the Trust is to reflect the performance of the prices of gold without including the expenses. Assets included in the Trust are gold bullions, cash, and gold bullion receivables, but the primary holding is in gold bullions. The Trust tracks the London Bullion Market Association (LBMA) prices of gold.
The expense ratio of GLDM of 0.18% is lower than the average gold ETF, making it a profitable offering. Performance over one year has been more than 5%. This trust manages assets worth about $5.3 billion with a three-month average daily volume of 3683414. The Trustee is the Delaware Trust Company.
SPDR Gold MiniShares Trust is currently trading at $36.63. Has gone up about 3% for the past 5 days. Still on a bullish trend right now.
2 - Aberdeen Standard Physical Gold Shares ETF (NYSE: SGOL)
Accurate prices of physical gold are tracked by SGOL. The primary holding is gold bullions held in vaults in Zurich, Switzerland, and London, Uk. With an expense ratio of 0.19%, it is one of the lowest with GLDM. The three-month average daily volume stands at 3.4 million. Well, this is not a fast-growth ETF like those managed by Cathie, it offers consistent returns at a 10.525 for its 3-year return period, compared to the S&P 500 at %20.71. But now that the S&P is selling off, I'll be putting my money here.
The ETF has competitive costs and pricing, making it one of the best gold ETFs. Right now, its share price is at $17.68 per share. In addition, the net asset value is growing exponentially and has grown by 14% year to date. The objective of the ETF is to shield investors from the expense of holding gold. It protects them from exposure to the risks of doing so.
3 - Granite Shares Gold Trust (NYSE: BAR)
The objective of BAR, like SGOL, is to mitigate the risks of holding physical gold for investors. Therefore, it tracks gold prices minus the expenses. In addition, it has a guarantor-trust structure, which means investors have a certain degree of tax protection.
The performance over one year stands at over 5%, and it has an expense ratio of 0.17%. The assets under management are $1 billion with a three-month average daily volume of 685 111. One can trade the ETF using a regular brokerage account. The primary holding is gold bullions stored in vaults in London. With this Trust, investors can profit from any increase in the price of gold.
Why Invest In A Gold ETF
Gold ETFs offer several advantages to the prudent investor. First, it is more advantageous than buying physical gold. Also, you should consider a gold ETF if you want to hedge against inflation. Gold also serves as a protection when a currency is fluctuating.
So, tell us: Are these Gold ETFs attractive to you? Or which would you be looking at for at this period of time?
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