Aberdeen exchange traded funds offers some of the cheapest precious metals-related strategies available, helping investors capture the long-term benefits of including alternative hard assets into a diversified investment portfolio.
Specifically, ETF investors who are interested in precious metals exposures can look to options like the Aberdeen Standard Gold ETF Trust (SGOL), which comes with a 0.17% expense ratio, and the Aberdeen Standard Physical Silver Shares ETF (SIVR), which has a 0.30% expense ratio. Additionally, the Aberdeen Standard Physical Precious Metals Basket Shares (NYSEArca: GLTR), which has a 0.60% expense ratio, acts as a catch-all of gold, silver, platinum, and palladium.
So far this year, SGOL increased 27.7%, SIVR jumped 49.3% and GLTR advanced 28.9%, with COMEX gold futures now hovering around $1,959 per ounce and COMEX silver futures trading around $27.6 per ounce.
Precious metals-related ETFs have attracted a lot of attention this year as investors looked for hard assets to hedge against market risks. “Gold has been one of the biggest stories of the year,” said Dave Nadig, ETF Trends Director of Research. “Even as the stock market has made new highs, investors have been rotating into safe-haven assets. ETFs tracking precious metals have been the dominant vehicle, and one where controlling costs has been easiest.” The coronavirus pandemic sent risk assets reeling earlier this year and drove up demand for safe-haven plays. The aggressive fiscal and monetary stimulus measures have fueled inflationary concerns and weakened the U.S. dollar, further supporting the appeal for hard assets. Additionally, the lower-for-longer rate environment has made it more attractive to hold these hard assets that don’t come with yields.
Year-to-date, SGOL attracted $1.1 billion in net inflows, SIVR brought in $173 million and GLTR saw $101 million in inflows, according to ETFdb data.
The Aberdeen Standard Physical Gold Shares ETF seeks to reflect the performance of the price of gold bullion, less the Trust’s expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold. An investment in physical gold requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing, and insurance of the metal. Although the Shares are not the exact equivalent of an investment in gold, they provide investors with an alternative that allows a level of participation in the gold market through the securities market.
The Aberdeen Standard Physical Silver Shares ETF seeks to replicate, net of expenses, the price of silver bullion. The shares are backed by physically allocated silver bullion held by the custodian. All physical silver held conforms to the London Bullion Market Association’s rules for good delivery.
Lastly, the Aberdeen Standard Physical Precious Metals Basket Shares ETF tries to reflect the performance of the price of a basket of gold, silver, platinum, and palladium bullion, less the expenses of the Trust’s operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in physically-backed precious metals.
For more information on the precious metals market, visit our precious metals category.