GraniteShares Gold Trust (BAR). ETF Database. abrdn Physical Gold Shares ETF (SGOL). Abren.
Physically backed gold ETFs seek to track the spot price of gold. They do this by physically holding gold bars, bars and coins in a vault on behalf of investors. Each share is worth a proportional share of an ounce of gold. The price of the ETF will fluctuate based on the value of gold in the vault.
The best-performing gold ETF, based on last year's performance, is the SPDR Gold MiniShares Trust (GLDM) fund. These funds invest directly in gold bullion contracts or gold futures, unlike companies that mine the metal. That makes it the best gold ETF for those who want to invest in mining companies as a way to play in the gold market. Gold miners can use the cash flow they earn from gold production to expand their production, make dividend payments and buy back shares.
Gold ETFs are exchange-traded funds that give investors exposure to gold without having to directly buy, store and resell the precious metal. As with other types of ETFs, the issuing company buys shares in gold-related companies or buys and stores gold bars on its own. When selecting gold ETFs, decide if you want exposure to physical gold or to public companies involved in gold mining. The SPDR Gold MiniShares Trust is a lower cost product launched by the same investment managers as the SPDR Gold Shares ETF.
As gold prices rise, investors may be interested in gold exchange-traded funds rather than buying bullion. Those investments and shareholder returns position gold mining companies so that they can deliver better total returns compared to gold price gains. Most (but not all) gold ETFs are linked to the spot price of gold, so returns must align with gold price movements. The benefit of owning an ETF from a gold mining company over a gold price ETF is that it can generate higher returns.
SPDR has long held absolute dominance in the gold trading market, but the iShares Gold Trust slowly mined the assets of the buying and holding crowd. This gold ETF offers the same direct exposure to the price of gold, since it also owns gold bars, but at a lower cost. This iShares gold ETF isn't as liquid as SPDR's gold stocks, and its buy and demand spreads aren't as tight, so it's not ideal for short-term traders. Gold ETFs that represent physical holdings are the most direct way to invest in gold through the stock market.