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What is gld etf

COMEX Gold Trust (IAU)

Quick Stats (5/15/2015)

IAU is a very similar fund to GLD in that it tracks physical gold bullion. Each share is representative of approximately 1/100th of an ounce of gold. But IAU’s real advantage boils down to its fee superiority. IAU charges 0.15% less than GLD. making it the ideal long-term hold. Think that number sounds insignificant? Consider two million-dollar portfolios, one of which is wholly invested in GLD and the other in IAU (obviously a diversification nightmare but ignore that for now). The GLD portfolio will incur annual expenses of $4,000, while its competitor will shell out only $2,500. That $1,500 difference seems miniscule for just one year, but drag it out over a 30-year investment period and the difference between fees amounts to $45,000, or 4.5% of your original investment. Saving yourself a quick 4.5% could have been as simple as buying IAU over GLD .

IAU is

Right for You If. You are a long-term investor seeking to hold on to your ETF for an extended period of time.

Physical Swiss Gold Shares (SGOL)

Quick Stats (5/15/2015)

SGOL is another popular gold ETF because it puts a different spin on physically-backed ETFs. Many investors fear for the safety of their physically-backed ETFs because they do not trust the vault locations to securely hold their bullion. SGOL holds all of its gold in Switzerland, allowing some of the more paranoid investors to gain peace of mind when making their gold allocation. This ETF began trading in 2009 and quickly gathered assets as gold bugs around the world flocked to its one-of-a-kind strategy. Also of note is that its expense ratio of 0.39% is curiously one basis point cheaper than the ultra-popular GLD .

SGOL is Right for You if. You are a long-term investor who wants a vault location in secure Switzerland.

Category: Forex

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