Market Uncertainty Drives Gold ETF Buying: State Street
November 26th, 2012 at 12:58pm by John Spence
SPDR Gold Shares (NYSEArca: GLD) is the second-largest ETF with $75.5 billion in assets under management.
ETF Trends Editor Tom Lydon sits down with State Street Global Advisors’ Managing Director of the Intermediary Business Group, Jill Mavro, to discuss what’s driving the growth of the gold ETF.
“The universe of buyers of GLD is growing every year. We’ve seen more institutional clients also using gold and really carving out gold as a separate and distinct asset class away from commodities,” she tells Lydon. [Hedge Funds Buy Gold by the Ton with ETFs]
Mavro says market uncertainty and volatility are boosting the popularity of the gold fund as a hedge. Additionally, she cites the precious metal ETF’s ease of use, liquidity, transparency and State Street’s partnership with the World Gold Council that brings an extra layer of credibility to the fund. [Gold ETFs Get Boost from Investment Demand]
She also discusses how financial advisors are using State Street’s wide array of ETFs in portfolios and asset-allocation models.
Watch the video to see the full interview.
Full disclosure: Tom Lydon’s clients own GLD.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.