For investors wanting exposure to precious metals, gold has historically been the most popular alternative. If you don’t want to invest in physical gold, gold exchange-traded funds (ETFs) are a more convenient and efficient option. With so many alternatives, it’s critical to discover the best-performing gold ETFs for your investment objectives.
In the realm of gold investments, considerations encompassing “gold ETF in IRA” and identifying the “best gold trust” hold paramount importance. Noteworthy entities like “HartfordGold” and “ProShares UltraShort Gold” cater to varying strategies, including the integration of a “gold ETF in Roth IRA.” Investors seeking stability often gravitate towards “gold funds backed by physical gold,” while staying attuned to market dynamics such as the “SDOW stock price today.”
Navigating the current landscape, discerning the “best gold ETFs to buy now” involves evaluating options like “UGL ETF,” “SGOL,” “ProShares Ultra Gold ETF,” and the renowned “SPDR Gold Trust ETF (GLD).” Aligning with the ethos of “Vanguard invest in gold” and the credibility of the “Aberdeen Standard Gold ETF Trust,” even the likes of “JP Morgan Gold ETF” contribute to the allure of “physical gold funds,” thereby offering a diversified spectrum of opportunities for astute investors.
Below is a list of some of the best gold ETFs to invest in based on variables like as performance, fees, liquidity, and overall benefits.
1.SPDR Gold Shares (GLD)
The company was founded on November 18, 2004.Assets managed: $54.46 billion (as of August 28, 2023).0.4% expense ratioPhysical gold and cash are among the assets held.
Why did we choose it: The most popular gold ETF is SPDR Gold Shares (GLD), which has a great track record dating back to 2004. It is also the largest gold ETF, managing about $55 billion in assets. With its substantial size and market presence, this gold ETF may provide investors with consistency and dependability.
GLD owns both physical gold bullion and cash. This strategy gives investors direct exposure to the underlying asset, guaranteeing that the fund’s performance closely tracks gold price swings. In addition to its size and investment methodology, GLD provides investors with significant liquidity.
2.iShares Gold Trust (IAU)
Date of inception: January 21, 2005Assets managed: $26.69 billion (as of August 28, 2023).0.25% expense ratioPhysical gold is one of the holdings.
Why did we choose it: The iShares Gold Trust (IAU) is a well-known ETF that gives investors exposure to the price of gold. It’s a large fund in the gold ETF industry, with about $30 billion in assets under management. IAU is listed on the NYSE Arca, providing investors with easy access.
One distinct feature of IAU is that it has a lower expense ratio than other gold ETFs, such as SPDR Gold Shares. Because of its lower costs, the fund is a more cost-effective investing alternative for tracking the price of gold. Furthermore, the fund’s size and liquidity make it simple for investors to acquire and sell shares, with an average daily trading volume of 4.9 million.
3. GraniteShares Gold Trust (BAR)
The company was founded on August 31, 2017.Assets managed: $913.46 million (as of August 28, 2023).0.17% expense ratioPhysical gold is one of the holdings.
Why did we choose it: GraniteShares Gold Trust (BAR) is a notable gold ETF that only holds gold bullion in its London vaults. When compared to other gold-leveraged ETFs, it has a substantially lower expense ratio and per share price of 0.17%.
BAR is easily traded on the NYSE Arca platform or through a brokerage account. With an average daily trading volume of roughly 617,000, it has lower liquidity than the other gold ETFs in this list. The fund’s commitment to transparency extends to its daily publication of gold bars held, allowing investors to confirm the physical backing of their investment.
4. VanEck Gold Miners ETF (GDX)
The company was founded on May 16, 2006.Assets managed: $11.5 billion (as of August 28, 2023).0.51% expense ratioGold mining company securities are among the holdings.
Why did we choose it: The VanEck Gold Miners ETF (GDX) exposes investors to the gold mining business. This ETF provides a comprehensive strategy by encompassing roughly 50 key mining companies, including the industry’s two largest gold miners, Newmont Corp. (NEM) and Barrick Gold Corp. (GOLD). GDX allows investors to acquire exposure to a diverse range of gold mining stocks.
GDX enables investors to profit from the potential growth of the gold mining industry.
Because the performance of gold mining firms is influenced by a variety of factors such as production levels, operational efficiency, and exploration success, this ETF is susceptible to market pressures other than the price of gold. With an average daily trading volume of 16.94 million, GDX is quite liquid. It’s also the only ETF in this series that pays a dividend.
5. abrdn Physical Gold Shares ETF (SGOL)
Assets managed: $2.64 billion (as of August 28, 2023).0.17% expense ratioPhysical gold is one of the holdings.
Why did we choose it: SGOL, or the abrdn Physical Gold Shares ETF, stands out as a compelling alternative for investors looking for a low-cost gold ETF. This fund provides a compelling value proposition by keeping expenses very low, with an expense ratio of 0.17%.
The fund invests in gold bullion bars, which are safely held in vaults in Zurich and London. It manages about $3 billion in assets, which is less than the largest gold ETFs on this list but still more than BAR.
Gold ETFs FAQs:
How do I purchase gold ETFs?
Investors can purchase gold ETFs using a brokerage account, where they can search for and place buy orders for the desired ETF ticker symbol. It is critical to select a reputable brokerage that provides access to a diverse choice of ETFs and dependable trade execution.
Is it safe to invest in gold ETFs?
Gold ETFs are often seen as risk-free investments. However, as with any investment, they have risks and may not be suitable for everyone. Check the prospectus carefully, comprehend the underlying assets, and consider gold market volatility and issuer reliability. You can also talk to a financial counsellor about the investment to see if it’s good for you.
What are the advantages of gold ETFs?
Gold ETFs allow investors to have exposure to the price of gold without having to own, insure, or store the actual commodity. ETFs have strong liquidity in general, allowing investors to buy and sell shares on stock markets. Furthermore, gold ETFs offer diversification by allowing you to have exposure to a new asset class in your investment portfolio.
What are the disadvantages of gold ETFs?
Gold ETFs, like any other investment, carry their own set of dangers. Changes in the price of gold, market sentiment, and macroeconomic conditions can all have an impact on the value of these funds. Furthermore, while gold ETFs are convenient, they lack the tangibility of actual gold ownership, which some investors may regard as security.
How are gold exchange-traded funds taxed?
The tax treatment of gold ETFs might vary depending on factors such as the investor’s country of residency, the specific legislation in existence, and the structure of the ETF. Gains from selling gold ETF shares held for more than a year, for example, may be subject to long-term capital gains tax rates in the United States. If the shares are kept for less than a year, they may be subject to short-term capital gains tax rates. The tax implications for gold ETFs are complex, so consult a financial professional before investing to see how you may be taxed.
How We Picked the Best Gold ETFs
We looked at a number of parameters to find the best gold ETFs for 2023. First, we looked at the historical performance of gold ETFs, taking into account long-term returns, volatility, and risk-adjusted performance. The cost-effectiveness of each ETF was determined by comparing the expense ratios of various gold ETFs to industry averages. We also assessed the value each ETF delivered in relation to its costs.
The importance of liquidity in ETF investing was thoroughly investigated. The trading volume and average bid-ask spreads of gold ETFs were also examined in order to find ETFs with enough liquidity for investors. This facilitates the purchase and sale of shares, improving the overall investment experience.
In addition, we analysed each ETF’s reputation and track record, including credibility, experience, and financial stability. The popularity and investor trust in the ETFs studied were represented in assets under management (AUM). Each gold ETF’s AUM was taken into account, as higher AUM frequently suggests a larger investor base and potentially better liquidity.
This guide’s content is provided solely for educational or informative reasons and should not be construed as financial advice or a suggestion to purchase or sell any assets. Before making an investment choice, investors should perform additional research and examine their gold investing objectives.