ETF Trends
ETF Trends

As the end of the year approaches, exchange traded fund investors will have to prepare for some key risks, such as the presidential elections and Federal Reserve monetary policy changes.

On the upcoming webcast, Elections and the Fed: How to Prepare Your Portfolios, James Butterfill, Head of Research and Investment Strategy for ETF Securities, Stan Kiang, Director of Strategic Partnerships at ETF Securities, and Stephen Blumenthal, CEO, Chief Investment Officer & Portfolio Manager for Capital Management Group, will look to upcoming risks and consider investment options to help investors navigate a potentially choppy market.

For instance, precious metals are a good way for investors to manage market risks from increased uncertainty surrounding policy changes with a new president and administration, along with greater risks associated with unwinding of loose monetary policies.

Investors can gain exposure to these precious metals through a number of physically backed ETF options, including ETFS Physical Swiss Gold Shares (NYSEArca: SGOL). ETF investors can also use the ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) as a catch-all for a diversified basket of precious metals.

SGOL tracks the price movement of gold and is physically backed by physical gold bullion stored in Swiss vaults. Each share of SGOL essentially represents a fractional value of the stored physical gold. SGOL currently has 8,800,000 shares outstanding and stores about 855,887 troy ounces of gold, so each share accounts for 0.0973 ounces of gold.

The diversified GLTR is comprised of a basket of physical precious metals, including 5.8% platinum, 5.9% palladium, 30% silver and 58.3% Gold. Along with their value as a safe store of wealth, the three white metals are also supported by industrial demand. Silver has enjoyed greater industrial demand in both the U.S. and Japan. Meanwhile, platinum and palladium have benefited from the improving global economy and stronger car demand, especially in Europe and China.

Financial advisors who are interested in learning more about potential actions in response to fourth quarter hurdles can register for the Thursday, October 20 webcast here.