Gold ETFs (and related Miners) were punished yesterday on Yellen’s testimony following the Fed rate decision, and the metal has recently lost its momentum in no time flat, falling four straight sessions now including today.
GLD (SPDR Gold Trust, Expense Ratio 0.40%) is of course the largest ETF in the space with about $35 billion in assets under management with IAU (iShares Gold Trust, Expense Ratio 0.25%) having raised $7.2 billion in AUM. SGOL (ETFS Physical Swiss Gold Shares, Expense Ratio 0.39%) which has now raised north of $1 billion since its late 2009 inception will also likely be in play here given the sudden and swift reversal this week in Gold prices.
Other lesser known “Long Gold” designated ETFs that may also hit radars include DGL (PowerShares DB Gold, Expense Ratio 0.79%), and AGOL (ETFS Physical Asian Gold Shares, Expense Ratio 0.39%), as well as leveraged long products such as UGL (ProShares Ultra Gold, Expense Ratio 0.95%), DGP (PowerShares DB Gold Double Long ETN, Expense Ratio 0.75%), and UGLD (VelocityShares 3X Long Gold ETN, Expense Ratio 1.35%). UGL and DGP are of course designed to provide two times the daily returns of Gold futures prices, while UGLD attempts to deliver three times the daily return.
Not surprisingly, the trade-ability of Gold and Precious Metals around the fed decision yesterday has spurred accelerated activity in the aforementioned leveraged long products. Outside of long and short Gold ETFs, we have seen the emergence of specialty Gold linked products as well over time, with a few products like TBAR (RBS Gold Trendpilot ETN, Expense Ratio 1.00%) to point out.
TBAR utilizes a trend following strategy in relation to the price of gold bullion, resulting in either a long gold or a long cash position in layman’s terms.
Even newer products have debuted recently in the Gold linked space although they are just not on many radars yet likely and these include GYEN (Gartman Gold/Yen ETF, Expense Ratio 0.65%), GGBP (Gartman Gold/British Pound ETF, Expense Ratio 0.65%), GLDE (AdvisorShares International Gold ETF, Expense Ratio 1.52%), GEUR (Gartman Gold/Euro ETF, Expense Ratio 0.65%), and GLDI (Gold Shares Covered Call ETN, Expense Ratio 0.65%) from Credit Suisse.
SPDR Gold Shares
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