For many investors, gold is the standard in precious metal investing, which has become more accessible than ever thanks to options via an exchange-traded fund (ETF) wrapper like the SPDR Gold MiniShares (NYSEArca: GLDM).
By investing in a gold ETF like GLDM versus actual gold, investors can also reap the benefits of an ETF like its tax efficiency.
Gold ETFs can be bought and sold freely via an exchange when compared to physical gold. As such, investors can utilize the hedging properties of gold without having to endure the costs of actually owning and storing the asset like they would with physical gold.
For GLDM investors specifically, the ETF offers the following benefits:
- The investment objective of SPDR® Gold MiniShares Trust (GLDM) is for the Shares of GLDM to reflect the performance of the price of gold bullion, less GLDM’s expenses
- Shares of GLDM are designed for investors who want a cost-effective and convenient way to invest in gold and will be offered on a continuous basis
- For many investors, costs associated with buying and selling the Shares in the secondary market and the payment of GLDM’s ongoing expenses will be lower than the costs associated with buying and selling gold bullion and storing and insuring gold bullion in a traditional allocated gold bullion account
Per GLDM’s latest factsheet, net assets exceed over $600 million–a remarkable feat given that the inception date of the fund was less than a year ago–June 25, 2018.
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