When looking for an ETF that tracks gold, there are several options to consider. These include the SPDR Gold Trust, SPDR Gold Producers UCITS ETF USD, and VanEck Vectors Junior Gold Miners ETF. Each of these offers a slightly different risk profile, but all three offer excellent potential for growth.
VanEck Vectors Junior Gold Miners ETF
The VanEck Vectors Junior Gold Miners Exchange Traded Fund tracks the stock prices of gold and silver miners. It uses the MVIS Global Junior Gold Miners Index as its benchmark. Junior gold miners are smaller companies and are therefore exposed to different risks than their bigger rivals. However, the risks that junior gold miners face can be less severe than those faced by their large rivals.
VanEck has a long history of identifying investing trends and developing winning investment strategies. It is a top provider of ETFs in the U.S., and is known for its expertise in the gold industry. The company has a portfolio of $62 billion that includes 101 ETFs. It also offers mutual funds and separately managed accounts.
Gold can be volatile. To minimize risk, choose proven miners. Although gold stocks are volatile, gold miner ETFs offer exposure to the biggest gold miners in the market.
VanEck Vectors Gold Producers UCITS ETF USD
The VanEck Vectors Gold Producers UITF USD is an exchange-traded fund that tracks the performance of gold mining companies. The fund was launched in May 2006 and is listed on the NYSE Arca. It holds shares of 53 gold mining companies. Its assets total $15.1 billion.
The fund invests in the stocks of gold and silver mining companies. It is a market-capitalization-weighted index and aims to replicate the performance of the NYSE Arca Gold Miners Index. The fund invests at least 80% of its total assets in gold mining companies. The index is a modified market-capitalization-weighted index and contains publicly traded companies involved in gold and silver mining. As such, it does not have much diversification.
iShares Gold Producers UCITS ETF USD
The iShares Gold Producers UCITs ETF USD provides investors with a way to track the value of gold. It is based on the S&P Commodity Producers Gold index. It offers exposure to mining companies, which are ranked according to stock market capitalization.
This exchange traded fund tracks the performance of gold companies. The iShares Gold Producers UCITS ETF USD is domiciled in Ireland. The fund tracks the S&P Commodity Producers Gold Index and settles in the ICSD. It is managed passively.
SPDR Gold Trust
Investors in gold and other precious metals should consider investing in an ETF to gain exposure to these investments. These funds don’t participate in futures markets, but they do allow you to invest in shares that mimic the price of gold. According to Jeffrey Christian, managing director of consultancy CPM Group, ETFs have been a boon for gold because they have increased investment demand.
Gold ETFs are collections of gold-backed assets, and they allow investors to invest in the gold market with a smaller initial investment. They are growing in popularity since 2004, when the first gold ETF was introduced. There are now 30 gold ETFs in the U.S. market, with over $75 billion in assets under management.
Among the many benefits of investing in gold ETFs, SPDR Gold Trust offers low expense ratios, which make it affordable for even the most modest investor. Its expense ratio is only 0.25 percent per share, and it tracks the spot gold price. Because it holds only gold bullion, it provides a low-cost alternative to buying bars and coins.