Use Gold ETFs to Better Manage Portfolio Risks

“We believe gold remains a critical component of risk management within a diversified portfolio,” Gold said.

Investors who want to access precious metals may consider a number of physically backed metals-related ETFs as a way to diversify a traditional stock and portfolio, including the ETFS Physical Swiss Gold Shares (NYSEArca: SGOL).

ETF Securities also argued that a diversified basket of precious metals tends to perform more consistently versus any single metal and creates an exposure to both the cyclical and non-cyclical drivers of gold, silver, platinum and palladium as a whole. Consequently, investors may look to the ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) as a catch-all of all four precious metals, which may help improve portfolio efficiency while providing benefits of diversification and risk management to asset allocations.

For more information on the gold market, visit our gold category.