Top Gold ETFs for 2023

Gold prices slipped recently amid indications from several Fed officials that the central bank won’t show haste in cutting interest rates as inflation continues to remain stubborn. Gold prices reacted to this development negatively as historically a low-rate environment bodes well for the precious metal. However, long-term investors believe gold remains a solid option since sooner or later the Fed will begin to cut rates and there are several other catalysts that make gold stocks worth buying. Gold is commonly utilized by investors as a hedge against market risks such as inflation and geopolitical turmoil. Investors looking for exposure to this safe-haven asset have several options, including investing in gold bullion directly or buying gold futures contracts. Click on the tabs below to see more information on Gold ETFs, including historical performance, dividends, holdings, expense ratios, technical indicators, analysts reports and more.

He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more. However, its significantly lower cost than GLD makes it a better buy for long-term buy-and-holders. Farran Powell is the lead editor of investing at USA TODAY Blueprint.

  1. To wit, GLD is also the largest U.S.-traded gold ETF by a country mile.
  2. For investors, gold serves as a portfolio hedge against market volatility and geopolitical unrest.
  3. ETFs that invest in stocks of gold mining companies may offer dividends to investors, while gold-backed ETFs don’t.
  4. You can buy ETFs just like you’d buy a stock, through an online broker.

In addition to its size and investment approach, GLD offers ample liquidity for investors, with an average daily trading volume of 5.77 million. They can benefit from the dual catalysts of production https://1investing.in/ growth and a rising gold price. However, owning mining stocks is riskier than investing directly in gold. That’s because cost inflation and other factors can cause underperformance.

SSR Mining Inc (NASDAQ:SSRM)

There are no accreditation requirements, and many funds offer affordable entry points, so the barrier to gold investments is low. The issuer of GLD, State Street Global Advisors, also manages SPDR Gold MiniShares Trust (GLDM). GLDM consists of about 10% of the gold per share as GLD, allowing a much lower entry point for investors. In addition to the lower cost per share, it offers an expense ratio of 0.10%, which is the lowest on our list. The Aberdeen Physical Gold Shares ETF has $2.7 billion in assets and over 1.3 million ounces of gold in storage vaults in London and Zurich (as of March 31, 2023). The annual expense ratio for this fund is a low 0.17%, but it has some special tax implications due to its grantor trust status.

When choosing a gold ETF, consider the expense ratio, which is the annual fee of owning the ETF and includes management, administrative and marketing costs. Evaluating the expense ratio can help determine the cost-effectiveness of the investment. Gold has been used as a medium of exchange for thousands of years. Global societies value the commodity, causing its worth to persist and grow over time.

ETF issuers are ranked based on their aggregate assets under management (AUM) of their ETFs with exposure to Gold. Plus, a recent State Street Global Advisors survey found that 65% of respondents felt gold is a long-term strategic investment. Additionally, 73% of those surveyed believe that owning gold ETFs has improved the overall performance of their investment portfolios.

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One is not necessarily better than the other, as both physical gold and commodity ETFs give you diversification and exposure to the fluctuations of the gold market. Widely traded with a daily volume over $150 million, iShares Gold Trust is popular with stock traders but is also best gold etf a good long-term hold. With a reasonable expense ratio and low share price (valued at 1/100th of a gold ounce), this ETF is a solid choice. Furthermore, we considered the reputation and track record of each ETF, including credibility, experience and financial stability.

Traders Scouting Protection With High-Flying GLD ETF

An experienced ETF analyst selected the funds above, but they may not be right for your portfolio. Before purchasing any of these funds, do plenty of research to ensure they align with your financial goals and risk tolerance. Additionally, in times of political or social turmoil, investors often flock to gold as a safe haven, leaving behind more volatile assets. We are an independent, advertising-supported comparison service.

It’s a market-cap-weighted ETF, which means the bigger the stock, the greater the percentage of assets GDX invests in it. The ETF is heavily weighted, then, in bigger miners such as Newmont (NEM, 13.8% of assets), Barrick Gold (GOLD, 9.0%) and Agnico Eagle Mines (AEM, 7.6%). In fact, roughly two-thirds of the fund’s assets are concentrated in just the top 10 holdings. One popular way to play this industry is the VanEck Gold Miners ETF (GDX, $30.48) – a collection of roughly 60 companies in the gold mining industry.

VanEck Gold Miners ETF

This ETF features high transparency, with an updated list of bars available on the fund’s website. SGOL charges a 0.17% expense ratio and has accrued around $2.7 billion in total assets since its debut in September 2009. Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site.

The ETF was created for cost-conscious retail investors so they don’t lose market share to rivals such as iShares Gold Trust. Its managers opted to create a new ETF rather than changing the highly successful (and lucrative) SPDR Gold Shares product favored by institutional investors. The gold ETF offers the same direct exposure to the price of gold since it also owns gold bullion, but at a lower cost. A report by investment management company VanEck analyzed some data to show that gold prices are directly linked to gold stocks. Those desiring leveraged exposure to gold may want to use the ProShares Ultra Gold ETF (UGL), which seeks to provide 2x the daily returns of gold bullion. This fund has roughly $300 million in assets and an expense ratio of 0.95%.

Gold ETFs have played an expanding role in how investors access gold exposure. SPDR Gold Shares GLD was the first exchange-traded fund on the market—an advantage that still benefits the fund today. It held $1.5 billion in assets at the end of its first month in November 2004. Gold ETFs’ assets under management have since grown to $100 billion as of April 2023. To help investors find the best gold ETFs of 2024, we assessed a range of offerings against several criteria, including assets under management, liquidity and expense ratio.

You are exposed to the volatility of the companies within the fund and the gold market, but you won’t trigger the collectible tax by owning physical gold. To determine the best gold ETFs of 2023, we analyzed various factors. First, we assessed the historical performance of gold ETFs, considering long-term returns, volatility and risk-adjusted performance. The cost-effectiveness of each ETF was analyzed by comparing the expense ratios of different gold ETFs to industry averages. We also considered the value each ETF provided relative to its fees.