Gold has long been a sought-after commodity due to its intrinsic value and safe-haven status in times of economic uncertainty. Investors often turn to gold exchange-traded funds (ETFs) as a convenient way to gain exposure to the precious metal without actually owning physical gold. In 2024, several gold ETFs have gained prominence, attracting investors looking to hedge against market volatility and inflation. Let’s take a closer look at five of the biggest gold ETFs in 2024.
1. **SPDR Gold Shares (GLD):** Established in 2004, GLD is one of the oldest and largest gold ETFs globally, offering investors a cost-effective way to invest in physical gold. Backed by actual gold bars held in secure vaults, GLD tracks the price of gold and has become a popular choice for both institutional and individual investors seeking exposure to the precious metal.
2. **iShares Gold Trust (IAU):** With a lower expense ratio compared to many other gold ETFs, IAU provides investors with a cost-efficient means to invest in gold. Launched in 2005, the fund is backed by physical gold held by a custodian and gives investors the flexibility to trade gold on the stock exchange like a stock. IAU has gained popularity for its liquidity and transparency.
3. **VanEck Merk Gold Trust (OUNZ):** OUNZ stands out among gold ETFs by offering investors the option to take physical delivery of gold in exchange for their shares. This unique feature sets OUNZ apart and appeals to investors looking for direct ownership of physical gold. The fund aims to track the performance of gold prices and allows for the redemption of shares for gold bars or cash.
4. **Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL):** SGOL tracks the performance of gold bullion and is backed by physical gold held in Switzerland. The fund provides investors with a convenient way to invest in gold while benefiting from Switzerland’s reputation as a secure and stable jurisdiction for storing physical assets. SGOL has gained popularity for its transparent and reliable structure.
5. **GraniteShares Gold Trust (BAR):** BAR offers investors exposure to gold prices through physical gold held in London vaults. The fund aims to provide a cost-effective and transparent way to invest in gold, appealing to both retail and institutional investors. BAR has gained traction for its low expense ratio and straightforward approach to gold investing.
In conclusion, the popularity of gold ETFs in 2024 reflects investors’ ongoing interest in gold as a portfolio diversifier and hedge against economic uncertainties. The five gold ETFs highlighted here – GLD, IAU, OUNZ, SGOL, and BAR – represent some of the largest and most prominent options available to investors seeking exposure to the precious metal. Each fund offers unique features and benefits, catering to a diverse range of investment preferences and risk profiles in the ever-evolving financial landscape.