IAU iShares Gold ETF and RING iShares Gold Miners ETF are my Tactical Plays to ride the Bear Market

🌟🌟🌟With President Donald Trump's Liberation Day coming on April 2, US stocks sold off on Friday as investors were jolted by hotter than expected inflation data and the forthcoming tariffs announcements.  All 3 US indexes fell with the Dow Jones down 1.7% while  S&P500 dropped almost 2% and Nasdaq100 is down 2.7%.

In contrast Spot Gold prices surged to a record high on Friday, reaching USD 3,086.70 per ounce earlier in the session.  This can be attributed to investors seeking a safe haven asset amidst concerns about a potential global trade war, triggered by US tariffs. 

$iShares Gold Trust(IAU)$  tracks the Gold Spot price, using Gold Bars held in vaults around the world.  IAU provides an efficient way for me to hold physical gold without the hassle of buying, transporting, storing and insuring physical gold.  

IAU is the 2nd largest Gold ETF after $SPDR Gold Shares(GLD)$  with Assets Under Management  (AUM) of USD 41.07 billion compared to GLD's AUM of USD 90.04 billion.  However IAU has a lower expense ratio of just 0.25% compared to GLD's  0.40%, putting more money into my pockets. 

Performance wise, IAU is up 1.9% in the past 5 days and has risen 15.8% year todate.  In 2024, IAU has jumped 38.3%.  Wall Street Analysts are bullish on IAU with a Buy rating, Target price of between USD 64.89 to USD 67.58.  This is an upside potential of around 15%.

However IAU does not pay dividends.  That is why I have also invested in $iShares MSCI Global Gold Miners ETF(RING)$ .  RING tracks a market cap weighted index of companies that generate revenue primarily from mining Gold.  These gold mining companies are selected from both developed and emerging markets, providing a global exposure. 

The Top 10 holdings include Newmont Corp, Agnico Eagle Mines, Barrick Gold, Anglo Gold Ashanti, Wheaton Precious Metals, Kinross Gold, Gold Fields, Zijin Mining Group, Alamos Gold, Harmony Gold Mining and Coeur Mining. 

The Top 10 holdings weightage is 72%.  Total number of holdings is 40.  The expense ratio is 0.39%, among the lowest compared to competing ETFs.  Dividends are paid every 6 months.  The current dividend yield is 1.08%. RING goes ex dividend on June 18 2025.

$Newmont Mining(NEM)$  is the world's largest Gold mining company based in Greenwood Village Colorado US.  Newmont Mining was incorporated in 1921 and holds ownership of gold mines in the US, Canada, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru and Suriname. 

$Agnico Eagle Mines(AEM)$ is a Canadian  based gold mining company with operations in Canada, Finland, Australia and Mexico.  Agnico Eagle is a global leader in the Gold mining business with ownership of 8 mines. 

Barrick Gold is a sector leading Gold and Copper producer with a portfolio that spans the world's most prolific Gold and Copper Mines.  It owns 16 operating sites located in 13 countries with its headquarters in Canada. 

Newmont, Agnico Eagle and Barrick Gold  are the Top 3 holdings of RING and has a combined weightage of 42%. 

Performance wise RING has been on a tear.  It is up almost 3% in the past 5 days and has jumped 30% year todate.  In 2024 RING has skyrocketed by 50%.

In contrast SPY ETF which tracks the S&P500 Index is down 2.6% in the past 5 days and has dropped 4.9% year todate.  In 2024, SPY has only risen by 6.2%.

Wall Street Analysts are bullish on RING with a Buy rating, Average Target price of USD 40.07, an upside potential of 5%.

With IAU and RING ETFs, I have the best of both worlds in the Gold industry.  Both ETFs have done well in the face of market uncertainty caused by the Trump Administration trade tariffs which may cause a global trade war and well as rising fears of economic downturn. 

IAU and RING ETFs are my Tactical Plays to counterbalance against the volatility in my US stock portfolio and weather the impact of geopolitical tensions and slowing global economy.  

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