7 Largest or Cheapest Gold ETFs Under "Risk-off" Environment

Due to recent uncertainties, market volatility increased, investors' demand for hedging has increased, naturally the U.S. stock gold ETF has become the allocation target of more investment portfolios.

Specific to the driving force behind the recent rise in gold prices $Gold - main 2306(GCmain)$ , the number one factor is inflation. Historically, when the purchasing power of the $USD Index(USDindex.FOREX)$ or euro falls due to inflation, many people will flock to the gold market to seek value preservation.

Accompanied by rising inflation is the risk of interest rates continuing to rise, and sustained high interest rates will put enormous pressure on the global economy.

In such a "risk-off" environment, it is not cash that is king, but gold.

Under the context of rising inflation and interest rates at the same time, the following 7 US stock gold ETFs are worth considering:

Largest Gold ETF: $SPDR Gold Shares(GLD)$

SPDR Gold Trust, which tracks the price of physical gold, has about $59 billion in assets under management (AUM), making it the largest gold exchange-traded fund (ETF) and roughly double the assets of the next-ranked gold ETF. The daily trading volume of GLD usually exceeds 10 million shares, and the liquidity is also the best. The ETF has an expense ratio of 0.40%, which equates to an annual fee of $40 on a $10,000 investment.

Cheapest Gold ETF: $SPDR Gold MiniShares Trust(GLDM)$

SPDR Gold MiniShares has about $1 billion in assets under management, smaller than its SPDR sister fund GLD, but has an expense ratio of just 0.09%, less than a quarter of that. In addition, another advantage of GLDM is that the price per share is around US$20, which is suitable for investors with small funds.

Other Gold ETFs

In the process of selecting gold ETFs, the first thing we think of may be asset size and fees. However, the needs of gold investors are also very diverse, and sometimes mainstream funds may not be able to meet their individual needs or strategic goals.

At this time, the following five gold ETFs may have a stage to play:

  • $abrdn Physical Gold Shares ETF(SGOL)$ : SGOL's asset size is close to US$3 billion, with an expense ratio of 17%. The volume is sufficient and the expense is relatively low. Unlike paper gold assets, the trust holds physical gold held in vaults in Zurich and London.

  • $Van Eck Merk Gold Trust(OUNZ)$ : The biggest advantage of this $700 million VanEck fund is that investors can redeem the fund and deliver it with physical gold. The minimum shipping weight is 1 ounce, which will incur transportation costs and delays.

  • $VanEck Vectors Gold Miners ETF(GDX.AU)$ : GDX invests in large publicly traded gold mining companies, holding shares in about 50 miners, including Newmont Corporation (NYSE:NEM) and Barrick Gold (NYSE:GOLD).

  • $Aberdeen Standard Physical Precious Metals Basket Shares ETF(GLTR)$ : GLTR directly invests in physical gold, silver, palladium and platinum, of which gold and silver account for about 60% and 27% respectively, which can provide investors with diversified precious metal investments.

  • $ProShares Ultra Gold(UGL)$ : If you can bear greater risks and are short-term bullish on gold, and want to achieve greater returns, this double leveraged fund from ProShares can meet your needs. This product provides double leverage, which means that if the price of gold rises by 1%, UGL will rise by 2%. But it should be noted that if the price of gold falls, your loss will also be doubled.

# ETF opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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