Meanwhile, gold ETFs have made it much easier for individuals and hedge funds to trade gold without worrying about the costs of transporting or insuring the precious metal.
Other bullion-backed ETFs include iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL). [Gold ETF Bullion Holdings at Record]
GLD has an expense ratio of 0.4%, while IAU charges 0.25% and SGOL levies a management fee of 0.39% annually.
GLD has a five-year annualized return of 17%, according to Morningstar.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.
