Even with the recent sell-offs as of late, it’s good to be gold right now. With more market uncertainty ahead, the precious metal is still topping the list when it comes to exchange-traded fund (ETF) choices, and investors who want gold exposure can look to ETFs to fill that need.
Investors looking to get gold exposure can look at funds like SPDR Gold Shares (NYSEArca: GLD) and the SPDR Gold MiniShares (NYSEArca: GLDM). Precious metals like gold offer investors an alternative to diversify their holdings, and like other commodities, gold will march to the beat of its own drum compared to the broader market.
“With investors fleeing to safety, Gold has seen an uptick in demand and value ever since the COVID pandemic took over the globe,” a Forbes article noted. “Gold, while off the all-time highs it recently reached, has still been one of the best performers this year, and continues to be an in-demand commodity. That is why the SPDR Gold Shares is our only Top Buy for the week. iThe SPDR Gold Shares ETF offers investors a quick and easy way to gain exposure to the Gold market, and roughly track the price of Gold.”
As a backdoor play, ETF investors can get gold exposure via miners using the following funds:
- VanEck Vectors Gold Miners (NYSEArca: GDX): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.
- Direxion Daily Jr Gold Miners Bull 3X ETF (NYSEArca: JNUG): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.
- Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the NYSE Arca Gold Miners Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and, in mining for silver.
For more market trends, visit ETF Trends.