SPDR Gold Trust (GLD) GLD is one of the most popular ETFs available. The fund invests in physical gold and its performance is highly correlated with spot gold prices. GraniteShares Gold Trust (BAR). ETF database.
open Physical Gold Shares ETF (SGOL). Abren. Below are the top 7 gold ETFs to capture the shiny metal. Some investors consider ETFs to be a relatively liquid and low-cost option for investing in gold compared to alternatives such as gold futures or stocks of gold mining companies.
Gold ETFs are exchange-traded funds that give investors exposure to gold without having to directly buy, store and resell the precious metal. It is a relatively inexpensive way to benefit from possible increases in the price of gold compared to many other gold ETFs. Investors buy shares of the fund, the value of which rises and falls with the underlying price of gold or the value of the company's shares. Most (but not all) gold ETFs are linked to the spot price of gold, so returns must align with gold price movements.
The best-performing gold ETF, based on last year's performance, is the SPDR Gold MiniShares Trust (GLDM) fund. Gold miners can use the cash flow they earn from gold production to expand their production, make dividend payments and buy back shares. As with other types of ETFs, the issuing company buys shares in gold-related companies or buys and stores gold bars on its own. That makes it the best gold ETF for those who want to invest in mining companies as a way to play in the gold market.
The Aberdeen Standard Physical Gold Shares ETF (SGOL) is an even cheaper way to access the same gold index, with an expense ratio of 0.17%. SPDR has long held absolute dominance in the gold trading market, but the iShares Gold Trust slowly mined the assets of the buying and holding crowd. Those investments and shareholder returns position gold mining companies so that they can deliver better overall returns compared to gold price gains. In addition to buying gold bars directly, another way to gain exposure to gold is to invest in exchange-traded funds (ETFs) that hold gold as their underlying asset or to invest in gold futures contracts.
With these ETFs physically backed by gold bullion, they reliably track the price of gold while eliminating the uncertainties of futures contracts. Gold investors and gold exchange-traded funds (ETFs) haven't had much to brag about in the past year. This gold ETF offers the same direct exposure to the price of gold, since it also owns gold bars, but at a lower cost.
