Gold has pulled back this week but bulls are encouraged that prices have held at $1,600 an ounce, potentially clearing the way for a rally.
After peaking to a record high above $1,900 an ounce, gold prices have cooled off. Yet investors who like gold may want to consider some of the best-performing exchange traded funds. Gold ETFs were set to rise Friday after a four-day losing streak.
Mark Riddix for Investopedia this week profiled five gold-related ETFs that have held up well in 2011, despite the recent sell-off in the precious metals.
- SPDR Gold Shares (NYSEArca: GLD): GLD is a physically-backed ETF that holds gold bullion in a vault in an attempt to reflect the price movements in gold on a daily basis. Even with the slight retreat in gold prices, the fund has gained 19% year-to-date, according to Investopedia.
- ProShares Ultra Gold (NYSEArca: UGL): UGL tries to reflect 200% of the changes in gold prices on a day-to-day basis. The fund holds futures contracts, options contracts and swap agreements to achieve its target strategy. Consequently, it will generated higher returns on positive gold days and even lower returns as gold prices fall. year-to-date, this fund is up 33%, but investors should not hold this ETF over the long-term as the fund is designed to be used as a daily trading tool. [ETF Chart of the Day: Leveraged Gold Funds]
- iShares Gold Trust (NYSEArca: IAU): IAU, like GLD, is a physically-backed ETF. While the fund has pulled back from its year high, the fund is still up 18% year-to-date, according to Investopedia.
- Powershares DB Gold Fund (NYSEArca: DGL): DGL reflects the price changes in gold by utilizing an optimum yield strategy that holds futures contracts with multiple maturity dates. Year-to-date, the fund is up 18%.
- ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR): GLTR offers diversification into gold, along with platinum, silver and palladium. The fund has gained 8% year-to-date.
SPDR Gold Shares
For more information on gold, visit our gold category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.