The main complaint about this method of investment is conspiracy theorists from proposing sides argue that the gold underlying these funds is actually being loaned out and is not actually held in the vaults. Rest assured, this is not true, and the funds prospectuses can clear this up.
Also from a tax viewpoint, physical gold is treated as a collectible, and after being held for one year, the maximum rate the gold can be taxed at is 28%. Futures-based ETFs, on the other hand, generate K-1s. Talk with your accountant about how to handle them.
You can find all gold ETFs by going to our ETF Analyzer and typing “gold” in the search or by selecting “commodity-based ETF” from the drop-down menu.
For more stories about gold ETFs, visit our gold category.
Tisha Guerrero contributed to this article.