The meteoric rise of Bitcoin has prompted conversations about a wide array of alternative asset classes. Many analysts are even suggesting cryptocurrencies could be a ‘safe-haven’ asset since they are not controlled by governments.
In the upcoming webcast, Gold and Crypto: There’s Room in Your Portfolio For Both, Frank Holmes, CEO and Chief Investment Officer, U.S. Global Investors; Darcy Daubaras, Chief Financial Officer, HIVE Blockchain Technologies; and Mike McGlone, Senior Commodity Strategist, Bloomberg Intelligence, will discuss both digital currencies and gold, exploring the ways financial advisors can safely incorporate both assets into their portfolios.
As a way to gain exposure to the rise of gold, investors may focus on a fund strategy that incorporates royalty and streaming companies, which many consider being the ‘smart money’ of the space One such fund is the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSEArca: GOAU). The U.S. Global GO GOLD and Precious Metal Miners ETF is a smart beta offering that tracks a specialized or rules-based index to help home in on quality players in the gold mining space. The underlying U.S. Global GO GOLD and Precious Metal Miners Index uses quantitative analysis designed to capture the performance of companies engaged in the production of precious metals either through active (mining or manufacturing) or passive (owning royalties or production streams) means.
The ETF also includes a 30% tilt to royalty and streaming companies, which can help investors better-manage common risks associated with traditional producers, such as building and maintaining mines. The lower risk may also diminish risk since royalty companies have historically rewarded investors by increasing dividends at a faster pace than the broader equity market.
According to U.S. Global, royalty companies are a superior way to target the gold mining segment. Royalty companies are not responsible for costly infrastructure, so huge operating expenses can be avoided. These companies hold highly diversified portfolios of mines and other assets to mitigate concentration. Additionally, they generate some of the highest revenue per employee of all public companies, while simultaneously growing cash flows and dividends.
Financial advisors who are interested in learning more about gold and crypto can register for the Wednesday, March 10 webcast here.