ETF Spotlight on SPDR Gold Shares ETF (NYSEArca: GLD), part of an ongoing series.
Assets: $73.2 billion.
Objective: SPDR Gold Shares fund tries to reflect the performance of the price movement on gold bullion.
Holdings: The fund holds physical gold bullion in London vaults under the custody of HSBC Bank USA.
What You Should Know:
- State Street Global Advisors sponsors the fund.
- GLD has an expense ratio of 0.40%.
- Total gold in the Trust is 1,284.6 tonnes or 41.3 million ounces.
- Each outstanding share of GLD translates to about one-tenth of an ounce of gold bullion.
- “Gold is a limited commodity that retains purchasing power even under strong inflationary pressures,” according to Morningstar analyst Abraham Bailin. “On the other hand, increased dollar strength will detract from gold’s value as investors are able to buy more metal with each bill.”
- “The instability of the eurozone provides for conflicting price drivers,” Bailin added. “While fears surrounding the potential downfall of this globally economically significant region have bolstered demand for gold as a safe haven, a weakening euro strengthens the U.S. dollar.”
The Latest News:
- Gold prices fell below $1,700 an ounce on Tuesday. [ETFs Test Moving Averages]
- Gold ETFs have seen inflows despite recent volatility. [ETF Chart of the Day: Gold]
- “As long as central banks around the world lean towards further easing, gold will rise further, although $1,800 will be a key resistance level for the time being,” Li Ning, analyst at Shanghai CIFCO Futures, said in a recent Reuters article. [Gold Miner ETFs Ride Bullion Toward $1,800]
SPDR Gold Shares