Best Gold ETFs for Q1 2020

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The precious metal gold is favored by many investors as a means of hedging against inflation, market turbulence, and political unrest. One way to gain exposure to the metal is gold exchange-traded funds (ETFs). Managed ETFs provide a convenient, liquid way to own gold futures, bullion, and other vehicles. They often offer a more diversified and less risky means of owning the precious metal compared to buying gold futures, shares of mining companies, or even bullion. Still, the 11 gold ETFs, excluding leveraged and inverse funds, are closely linked to the price of gold, which can see big swings.

The best gold ETF for Q1 2020 by 1-year trailing performance is the GraniteShares Gold Trust (BAR). Below, we’ll take a look at the top 3 gold ETFs for this period, as of February 17, 2020.

  • Performance over 1 year: 20.6%
  • Expense Ratio: 0.17%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 152,271
  • Assets Under Management: $652.5 million
  • Inception Date: August 31, 2017
  • Issuing Company: GraniteShares

The GraniteShares Gold Trust (BAR) owns physical gold held and secured in vaults in London. BAR is a grantor trust, meaning that it protects investors by limiting how its gold bars can be sold. Generally, the fund’s performance tracks the spot price of gold, less BAR’s fund expenses, which are low at 0.17%.

  • Performance over 1 year: 20.4%
  • Expense Ratio: 0.17%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 643,446
  • Assets Under Management: $1.4 billion
  • Inception Date: September 9, 2009
  • Issuing Company: Aberdeen Standard Investments

Like BAR, the Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL) aims to replicate performance of the spot price of gold. SGOL is also a grantor trust. The main difference between this fund and many other gold ETFs that is that SGOL stores its gold exclusively in vaults in Switzerland.

  • Performance over 1 year: 20.3%
  • Expense Ratio: 0.25%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 16,187,427
  • Assets Under Management: $19.0 billion
  • Inception Date: January 28, 2005
  • Issuing Company: Aberdeen iShares

As one of the largest gold ETFs by assets, IAU is another fund that buys and holds physical gold. Fund fees help to cover the costs of transporting, storing, and insuring gold bullion. Like BAR and SGOL above, IAU is organized as a grantor trust. IAU keeps its gold in various vaults held around the world. Notably, IAU does not try to generate a profit from selling its gold stores when the spot price increases. Rather, IAU is focused on providing stability for investors.

Source: Investopedia

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