What is the largest Gold ETF?
The largest gold exchange-traded fund, or ETF, by a wide margin, is the SPDR Gold Trust, the go-to way for investors looking to play the precious metal.
What ETF Pays the Highest Dividends? The gold mining ETF that pays the highest dividend in this article is the iShares MSCI Global Gold Miners ETF (RING).
Benefits of investing in gold ETFs
Investors are drawn to gold because it can act as a hedge against inflation and serve as a safe haven during economic and market volatility and downturns. Gold ETFs are a popular option for investors who want exposure to gold because they're convenient.
- American Gold Eagle.
- Gold American Buffalo.
- Canadian Gold Maple Leaf.
- Gold British Britannia.
- Gold South African Krugerrand.
- Gold Austrian Philharmonic.
- Gold Mexican Libertad.
- Gold Australian Kangaroo.
Leveraged 3X Gold ETFs seek to provide investors with a magnified daily or monthly return on physical gold prices. The funds use futures contracts to accomplish their goals and can be either long or inversed.
- SPDR Gold Shares (GLD).
- iShares Gold Trust (IAU).
- SPDR Gold MiniShares (GLDM).
- iShares Gold Trust Micro (IAUM).
- abrdn Physical Gold Shares ETF (SGOL).
- GraniteShares Gold Trust (BAR).
| Symbol | Name | Dividend Yield |
|---|---|---|
| QRMI | Global X NASDAQ 100 Risk Managed Income ETF | 12.06% |
| PEX | ProShares Global Listed Private Equity ETF | 12.00% |
| TYLG | Global X Information Technology Covered Call & Growth ETF | 11.86% |
| SDIV | Global X SuperDividend ETF | 11.80% |
The first drawback of investing in gold through an ETF is that our investment is still within the financial system, and hence exposed to counterparty risk. This means this type of gold investment loses one of the most important features of owning physical gold: being out of the financial system.
In general, gold ETFs offer some tax advantages and lower costs over time than trading physical gold. Below, we will guide you through your options for each, giving you a better sense of which, if either, works best for your portfolio.
Buying physical gold can be expensive—with dealer commissions, sales tax in some cases, storage costs, and security considerations to prevent theft. Physical gold also may be less liquid and more difficult or costly to sell. ETFs that track gold can be a more liquid and cost-effective way to go.
Which gold ETF is best for long term?
| ETF Name | NAV | 1Y CAGR 3Y CAGR 5Y CAGR Till Date CAGR |
|---|---|---|
| Aditya Birla Sun Life Gold ETF (G) | ₹ 65.28 | 16.8% |
| SBI Gold ETF (G) | ₹ 63.57 | 16.5% |
| ICICI Prudential Gold ETF (G) | ₹ 63.56 | 18.1% |
| HDFC Gold Exchange Traded Fund (G) | ₹ 63.53 | 17.1% |
Barrick (GOLD) said FY 2023 gold output fell 2.1% from the prior year to 4.05M oz, below its annual guidance range of 4.2M-4.6M oz and analysts' average estimate of 4.16M oz, due to equipment issues at its Dominican Republic mine and lower output at two sites in the Nevada Gold Fields project.
Selecting the Right Gold ETF
You need to keep an eye on tracking errors as well as the trading volumes. Choose funds that have lower tracking error and higher trading volume. If you wish to buy or sell any ETF Unit, you can do that during trading hours of the stock market, which is 9.15 hrs to 15.30 hrs.
Gold ETFs are pegged to the price of gold
There is a price risk in gold ETFs just as there is price risk in gold. If the price of gold goes up then the price of the gold ETF also goes up and vice versa. There is no other factor that impacts the price of Gold ETF other than the price of physical gold.
Gold ETFs allow you to invest in gold without paying extra fees like exit loads and expense ratios. On the other hand, gold funds allow you to invest through SIPs for even Rs. 500 per month. Investors can invest in gold funds if they want to make regular investments for a long period of time.
In terms of structural differences between an ETF and an ETC, the ETF invests directly in physical commodities or futures contracts. An ETC is a debt note, backed by an underwriter, which then collateralizes the note with buying the commodity.
Although Vanguard does not offer a pure gold fund, it does offer a fund that invests around one-quarter of its portfolio in precious metals and mining companies, providing indirect exposure to this market: The Vanguard Global Capital Cycles Fund (VGPMX).
Since these ETFs are backed by physical gold, investing in them is generally just as safe as investing in gold coins and bars — at least in terms of protecting yourself from market volatility and inflation. In fact, depending on your definition of safe, physical gold ETFs may be safer than gold coins and bars.
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|---|---|
| IAU | iShares Gold Trust | 100.00% |
| GLDM | SPDR Gold MiniShares Trust | 100.00% |
| SGOL | abrdn Physical Gold Shares ETF | 100.00% |
| BAR | GraniteShares Gold Trust | 100.00% |
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 49.00% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 46.73% |
| TECL | Direxion Daily Technology Bull 3X Shares | 39.77% |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 34.07% |
Which ETF has the highest 10 year return?
| Symbol | ETF Name | 10y Chg 4-2-24 |
|---|---|---|
| SOXX | iShares Semiconductor ETF | 873% |
| PSI | Invesco Semiconductors ETF | 786% |
| META | Roundhill Ball Metaverse ETF | 717% |
| XSD | SPDR S&P Semiconductor ETF | 617% |
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
If you want an investment that provides an income stream, stocks are likely the better choice. Note: You might be able to earn dividends from gold stocks or gold ETFs, but these are riskier than investing in physical gold like bars and coins.
Gold ETFs Losing Ground
This is down to costs. Energy prices, mining machinery, permits, labor costs, have all risen. Taken together in percentage terms, the cost of producing gold has risen more than the price of gold in the past decade.
With physical gold, you own the precious metal in the form of coins, bars, or bullion. With a physical gold ETF, you own a share of a fund that holds physical gold, but you do not own the gold directly. With commodity gold ETFs, you own a share in a fund that tracks the gold price.
