Top 8 Gold ETF Share Prices Worth Looking Into
Gold is a popular asset for investors to put their money in when they are looking to hedge against market volatility, political unrest, and inflation. When investors do not want to buy gold directly, they may instead choose to invest in exchange-traded funds with gold as the underlying asset. While we at RagingBull.com are not brokers or advisors and are not here to make recommendations, we have compiled a list of gold exchange-traded funds for investors to further educate themselves on gold EFT share prices. Here are eight of the top gold ETFs to consider:
- SPDR Gold MiniShares Trust (GLDM).
- Aberdeen Standard Physical Gold Shares ETF (SGOL).
- VanEckMerk Gold Trust (OUNZ).
- VanEck Vectors Gold Miners ETF (GDX).
- GraniteShares Gold Trust (BAR).
- Sprott Physical Gold and Silver Trust (CEF).
- Direxion Daily Gold Miners Index Bull 2X Shares (NUGT).
- Invesco DB Precious Metals Fund (DBP).
SPDR Gold MiniShares Trust (GLDM)
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SPDR Gold MiniShares has an expense ratio of 0.18% with a goal of tracking the spot price of gold minus its expenses. The one-year trailing total return on the fund is 36.5%, and it has a three-month average daily volume of 2,671,529.
The fund is structured as a grantor trust, which means that those investing in the fund directly own the underlying assets in it. It also determines how the taxes owed on the fund are paid. They are ‘passed through’ to the individual investors on the fund and reported on their personal tax return. The actual gold bullion that backs the fund is stored in London, and investors are provided with a weekly update by State Street SPDR as to the exact amount of the bullion holding. At the beginning of August 2020, the fund reported bullion holdings of 1,649,056 ounces and a total of $3.2 billion under their asset management.
Aberdeen Standard Physical Gold Shares ETF (SGOL)
Another gold exchange-traded fund that tracks the spot price of gold minus the expenses of the fund is Aberdeen Standard Physical Gold Shares ETF (SGOL). This fund boasts a one-year trailing total return of 36.3% and an expense ratio of 0.17%.
The gold bullion that backs this fund resides in a Swiss vault. They offer added security to their investors by providing all fund investors with the serial numbers of each of the gold bars held. Currently, the fund holds $2.6 billion in assets and has a three-month average daily volume of 1,695,918.
VanEck Merk Gold Trust (OUNZ)
The VanEck Merk Gold Trust (OUNZ) operates differently than other ETF funds as it caters to investors who prefer to be able to deal physically in gold. They hold their bullion in a vault but provide investors with the ability to redeem their funds when they choose. Investors can redeem by receiving a deposit back into their actual investment account, or they can choose to receive it in physical gold, which will be shipped directly to their door.
The fund assets run around $400 million, and their expense ratio is 0.25% annually, which makes it similar to the expense ratios of other gold funds. Investors are able to invest in gold at a competitive price while also having the option of physically obtaining the asset if they choose, which comes with a small fee for shipping.
VanEck Vectors Gold Miners ETF (GDX)
Another fund by VanEck is VanEck Vectors Gold Miners ETF (GDX), which tends to appeal to investors who are looking to invest in large stocks in the gold sector. The fund includes a combination of some of the most well-known names in gold. The fund is a $17-billion gold ETF and includes 50 major mining stocks, such as Barrick Gold Corp (GOLD). For some investors, the fund may be a little top-heavy, as their top two positions account for 25% of their portfolio. Even with the large percentage for the top holdings, the fund is considered highly diversified. The expense ratio for this fund is a little higher than the others at 0.52%.
GraniteShares Gold Trust (BAR)
There are some investors who do not necessarily trust ETFs of gold stocks, which makes it hard for them to find a fund that they feel safe investing in. GraniteShares Gold Trust (BAR) has tried to appeal to these more cautious investors by creating an ETF that will physically hold its gold bars as assets and also provide investors with a twice-yearly audit of their vault so that they can be assured that they have the gold itself on hand to back the fund. They have also made it their goal to be one of the best when it comes to tracking the performance of gold and finding the best ways to do it efficiently.
Because of their efficient measures, GraniteShares Gold Trust (BAR) has the lowest expense ratio of any ETF on the market at 0.17%.
Sprott Physical Gold and Silver Trust (CEF)
Sprott Physical Gold and Silver Trust (CEF) is a fund designed to appeal to gold investors who are also interested in investing in other hard assets. To this end, the fund combines two of the most precious metals of the market into their holding: gold and silver. The fund consists of approximately 66% gold bullion and 34% silver bullion. Due to its primary focus on gold, it is considered a gold fund with the added benefit of silver assets.
Even more appealing to some investors is the fact that this fund is also fully invested in the metal that is held by the Royal Canadian Mint. As with the VanEck Merk Gold Trust (OUNZ), investors can also take physical delivery of their silver and gold investments. The main drawbacks to this fund for some investors are that it has a high expense ratio at 0.53% and also charges additional delivery fees.
Direxion Daily Gold Miners Index Bull 2X Shares (NUGT)
Direxion Daily Gold Miners Index Bull 2X Shares (NUGT) is well-liked by investors due to the fact that it is highly liquid. It also has two times the daily movement that investors will find with gold mining stocks and an average volume of more than 5 million daily shares. The fund also boasts a high level of assets that averages just above $1 billion.
This fund is considered a higher risk, as the losses can rack up if the investor ends up on the wrong side of the trade, but it is popular with day traders due to its possible highrate of return. Since the fund is considered more aggressive, it is different from a traditional buy-and-hold approach, which makes it less than ideal for certain investors. The high expense ratio of 1.17% can also be a turnoff for some investors.
Invesco DB Precious Metals Fund (DBP)
Investors looking for a structured commodity pool may be interested in looking into Invesco DB Precious Metals Fund (DBP). In this fund, the investor assets are pooled and invested in futures contracts. The investor will then have both exposures to two of the highest-traded precious metals, gold, and silver through the futures. Because of the structure of this fund, investors will face the same risks that they would with any futures-backed products.
This fund has a 1-year trailing total return of 37.3% and an expense ratio of 0.75%. The three-month average daily volume is 20,429, and the annual dividend yield is 0.98%. The total assets under the management of the fund are $173.4 million, with approximately 81.1% of holdings in gold and the balance in silver.
Why Do Investors Choose Gold ETFs?
M any investors are drawn to gold ETFs because these funds are considered a lower-cost way to invest in gold versus buying gold futures or shares of mining stock directly. It also is considered a relatively liquid investment, which can be appealing to many. However, they are not without risk, as the price of gold can see significant swings, which can lead to volatility with ETFs.
Gold ETFs had a lackluster performance in the past year, but global economic concerns along with uncertainty about the current presidential election have investors looking into gold ETFs again to hedge against the market volatility.
ETFs are a great way for investors to put their money in gold in a more cost-effective manner while also diversifying their portfolio. While gold can see some wild swings, it can be a sought-after commodity in times of uncertainty.