The Most Common Gold ETFs
EFTs or Exchange Trading Funds are akin to your other investments that are traded in the stock market, apart from the exception that, unlike regular mutual funds, these funds hold stocks that are assets, such as commodities, bonds, etc.
Undoubtedly, gold is always a good investment when done in any way. Gold ETFs are more interesting for people who are fond of trading or simply the stock market. Similarly, some really big names are involved when it comes to Gold ETFs.
These investments are judged on the basis of their Asset Under Management (AUM), Net Asset Value (NAV), and Returns. These terms mostly pertain to the market value of the assets that the companies take to caring for you, the value of the company and its assets itself minus their liabilities, and how well they manage them to get you the highest returns possible, respectively. Without a doubt, it is always advisable to go for companies with higher AUM and NAV for greater returns.
Investing in gold EFTs is becoming common and popular because there are several advantages to it. One of the biggest advantages is that the gold acts as a hedge against risks. This alone makes it a worthwhile investment.
Determining the right EFT can be difficult, especially in a market that is prone to volatility. However, with a little education, an informed decision can be made. Following are the most common Gold EFTs for you to consider when planning your next investment.
GraniteShares Gold Trust (BAR)
This EFT has one of the highest returns and a staggering rate of 8% returns in over a year and an expense ratio of 0.17% with an AUM valued at 1 billion dollars. These figures are astonishing and no wonder, every investor’s delight.
Aberdeen Standard Physical Gold Shares ETF (SGOL)
Another very common and profitable gold ETF. People tend to gravitate towards and they have every reason for that. This ETF’s AUM is valued at 2.3 billion dollars and the performance over the first year is 8.2% which is a profitable deal in the long term.
Goldman Sachs Physical Gold ETF (AAAU)
Goldman Sachs is a trusted name and it does not disappoint with its gold funds either. Its AUM is valued at 370.2 million dollars with a performance of 8.1% in the first year, which is as impressive as it can get.
SPDR Gold Shares
With AUM valued at 70 billion dollars and a 0.4% expense ratio, this is a common Gold EFT which people prefer to keep their investments safe and profitable.
iShares Gold Trust
This is a reputed brand with an AUM of 31 billion dollars and charges only 0.25% expenses which keep it at an advantage when compared to other ETFs.
VanEck Merk Gold Trust (OUNZ)
It is another popular gold EFT with great figures and AUM valued at 450 million dollars. With expenses ratio at 0.25%, it proved great returns on investment and there is no reason to skip it in favor of others.
This list is certainly not definitive. Mentioned above are some of the most common Gold ETF options, but there are also other options like VanEck Vectors Gold Miners ETF (GDX), VanEck Vectors Junior Gold Miners ETF (GDXJ), Sprott Physical Gold, and Silver Trust (CEF) to consider.
Gold ETFs are undoubtedly your hedge against the risks and volatility of the market. They are a shield that can protect you from losses and it is always advisable to be wise when it comes to investing in them.
The end decision obviously rests with the investor but it is always wise to do your due diligence before deciding which ETF is most suitable for you.