For investors seeking exposure to gold and silver with a physically-backed ETF, there are a few expense ratios to compare. For example, the SPDR Gold Shares (NYSEArca: GLD) is the largest holder of gold bullion, and charges 0.40% for an investment. The iShares COMEX Gold Trust (NYSEArca: IAU) tracks the daily price movement of physical gold, too, and costs about 0.25%, with about $11 billion in AUM. The same pattern is evident with silver ETFs, with the iShares Silver Trust ETF (NYSEArca: SLV) costing 0.50% and the ETFS Physical Silver Shares (NYSEArca: SIVR) costing a low 0.30%. Both ETFs allow physical exposure to the metal, held by a custodian, and have reliable trading volumes. [Gold ETFs See Record Cutbacks in Bullion Holdings]
ETF alternative exist for most sectors and asset classes. It is worth the time it takes to research and figure out which fund will fit into ones portfolio, at the best possible price. Most of the alternative ETFs give exposure to the same product, with a few factors such as liquidity compromised, they just cost less.
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY, GLD and SLV.
