How I Invest In The Current Middle East Tensions

🌟🌟🌟Dow Jones Futures, S&P500 Futures and Nasdaq Futures fell sharply amid reports of Israeli strikes in Iran today.  Treasury yields dropped while Crude oil jumped.

Israel carried out a military operation in Iran overnight.  This is in response to Iran's April 13th missiles attack on Israel.

However US and other global powers have sought to deescalate the Middle East Tensions. 

I have just started to invest in $iShares Gold Trust(IAU)$ which is the 2nd largest Gold ETF next to $SPDR Gold Shares(GLD)$ .  IAU tracks the Gold spot price, using gold bars held in vaults around the world. 

IAU is an efficient way for investors to hold physical gold.  I do not have to worry about buying, transporting, storing and insuring physical gold.  The expense ratio is only 0.25% compared to GLD ETF which is 0.40%.

I have also invested in $iShares MSCI Global Gold Miners ETF(RING)$ which provides exposure to the largest Gold mining companies in the world.  The Top 10 holdings include Newmont Corporation, Barrick Gold, Agnico Eagle Mines and many others.  The expense ratio is 0.39%. 

I like RING ETF because it pays dividends every 6 months.  The current dividend yield is 1.82%.  RING ETF goes ex dividend on June 11 2024.

$iShares Silver Trust(SLV)$ is another ETF that I have recently invested in.  It is the largest Silver ETF in the world with Assets Under Management of USD 11.93 billion.  The expense ratio is 0.50%.  SLV tracks the Silver Spot Price, using Silver Bullion held in London.  SLV gives me direct exposure to Silver by physically holding Silver in vaults in London. 

Silver is also a very good conductor of electricity and is used in widely in photo voltaic solar panels, batteries in EVs, Semiconductors and many more industrial applications. 

I am a long term investor of $Energy Select Sector SPDR Fund(XLE)$ which I have held before the Ukraine war.  XLE represents the best of US Oil Giants like Exxon Mobil, Chevron, Conoco Philips and many others.  The expense ratio is 0.10%.  Dividends are paid every 3 months.  The current dividend yield is 3.06%.  With Oil prices on the rise, XLE has also benefited too.    XLE is my best performing ETF as a result. 

The current Middle East geopolitical conflicts is sending shivers of unease through the financial markets causing much worry and apprehension.  

That is why I have decided that it is important to invest in some defensive assets in addition to my core portfolio of plain vanilla ETFs like SPLG, SPTM and STI ETF.  

It is my fervent wish and hope that peace will prevail ultimately through diplomatic means rather than force and punitive measures. 

Here's to World Peace 🌈🌈🌈

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