The Gold Trendpilot ETN (NYSEArca: TBAR) holds gold bullion but also follows a trend following strategy. When the price of gold is above its 200-day simple moving average for at least five consecutive sessions, TBAR buys more gold. On the other hand, if it is bellow the trend line, TBAR switches to 3-month Treasury bills. When the underlying index is invested in gold, the expense ratio is 1.0%, and when it is invested in cash, it has a 0.50% fee.
The UBS E-TRACS S&P 500 Gold Hedged ETN (NYSEArca: SPGH) is long the S&P 500 and hedges against dollar changes with gold futures. The ETN will usually outperform an unhedged S&P 500 when gold prices appreciate relative to the dollar.
For more information on gold, visit our gold category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.
Story updated to correct the investment strategy of PowerShares DB Gold Fund (DGL).