8 Best Gold ETF Tickers for Savvy Investors (2023)

When investing in precious metals, discovering the optimal gold ETF ticker is imperative for optimizing returns and reducing risk.

In this comprehensive guide, we will explore various gold ETFs that cater to different investment strategies and preferences.

From physically-backed funds like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), to mining stocks-focused offerings such as VanEck Vectors Gold Miners ETF (GDX) and Junior

Gold Miners ETF (GDXJ), our list of the 8 best gold ETF tickers provides a solid foundation for investors seeking exposure to this valuable asset class.

• SPDR Gold Shares (GLD): State Street Global Advisors
• iShares Gold Trust (IAU): iShares by BlackRock
• VanEck Vectors Gold Miners ETF (GDX): VanEck
• VanEck Vectors Junior Gold Miners ETF (GDXJ): VanEck
• SPDR Gold MiniShares Trust (GLDM): State Street Global Advisors
• GraniteShares Gold Trust (BAR): GraniteShares
• VanEck Merk Gold Trust (OUNZ): VanEck
• Goldman Sachs Physical Gold ETF (AAAU): Goldman Sachs

Learn to invest in the best gold ETFs using online brokerage services or dollar-cost averaging strategy.

However, be aware of potential risks associated with leveraged funds or ETNs when considering more advanced options within this space.

8 Best Gold ETF Tickers

Beyond providing a complete list of top precious metals ETFs by AUM, we will also delve into key factors that make a good gold fund, including:

• Assets under management (AUM) thresholds,
• Expense ratios,
• Liquidity considerations, and
• Investment strategies.

By understanding these key factors that make a good gold fund, you can confidently select an ETF best suited to your financial goals.

We discuss direct exposure through physical bullion-backed funds versus investing in major and junior mining companies.

We’ll also examine how diversification benefits can be achieved by incorporating these investments into your portfolio while hedging against inflation with gold as an asset class.

This comprehensive list of the top-performing non-leveraged and non-exchange-traded-note gold ETF tickers is based on data current as of April 3rd, 2023.

Each ticker includes its symbol, assets under management (AUM), five-year performance, and managing company.

ETF Name	Ticker	AUM	YTD %
SPDR Gold Shares	GLD	$61B	9.9%
iShares Gold Trust	IAU	$29B 1	10.0%
SPDR Gold MiniShares Trust	GLDM	$6.3B	10.1%
abrdn Physical Gold Shares ETF	SGOL	$2.7B	10.0%
iShares Gold Trust Micro	IAUM	$1B	10.1%
GraniteShares Gold Trust	BAR	$993M	10.1%
VanEck Merk Gold Trust	OUNZ	$707M	9.9%
Goldman Sachs Physical Gold ETF	AAAU	$530M	9.9%

SPDR Gold Shares (GLD): State Street Global Advisors

SPDR Gold Shares is one of the world’s largest and most popular gold-backed ETFs.

With an AUM of $61 billion and a five-year performance return of 43%, this fund offers investors direct exposure to physical gold bullion without storing it themselves.

iShares Gold Trust (IAU): iShares by BlackRock

The iShares Gold Trust is a popular ETF option for investors looking to invest in physical gold, but VanEck’s Vectors Gold Miners ETF (GDX) provides similar exposure with lower fees.

With over $28 billion in AUM and a five-year performance return of 42%, IAU provides similar exposure to GLD but with a lower expense ratio of 0.25% compared to GLD’s 0.40%.

SPDR Gold MiniShares Trust (GLDM): State Street Global Advisors

SPDR Gold MiniShares Trust is another option for investing in physical gold with lower costs than GLD or IAU. GLDM offers an economical way of investing in gold, with a cost ratio of only 0.18%.

GLDM has an AUM of over $4 billion and a five-year performance return similar to its larger counterparts at approximately 42%.

abrdn Physical Gold Shares ETF (SGOL); abrdn PLC

The abrdn Physical Gold Shared ETF provides investment opportunities in gold.

SGOL’s approach involves securing gold bars in a Swiss vault, which undergoes biannual audits, to track the spot price of gold bullion.

SGOL has an AUM of around $2.7 billion and a five-year performance of around 48%.

iShares Gold Trust Micro (IAUM): iShares by BlackRock

iAUM is marketed as the lowest-cost gold ETF in the market today.

The iShares Gold Trust Micro has an AUM of about $1 billion. It is relatively new and only has been around since June 15, 2021.

GraniteShares Gold Trust (BAR): GraniteShares

The GraniteShares Gold Trust aims to track the price performance of gold after considering the trust expenses.

BAR has an AUM of $993 million and a 3-year return of 6.11%.

VanEck Merk Gold Trust (OUNZ): VanEck

The VanEck Merk Gold Trust offers investors a simple and affordable gold investment method.

They accomplish this through an exchange-traded product that allows you to keep the gold or have it delivered to you.

OUNZ has an AUM of around $698 million and a year-to-date return of 9.9%.

Goldman Sachs Physical Gold ETF (AAAU): Goldman Sachs

The Goldman Sachs Physical Gold ETF tracks the performance of gold through its price movements.

Its AUM is $530 million, and its year-to-date performance is 9.9%.

Other Gold ETFs

VanEck Vectors Gold Miners ETF (GDX): VanEck

Rather than investing directly in physical gold, VanEck Vectors Gold Miners ETF provides exposure to gold miners by tracking the NYSE Arca Gold Miners Index.

With an AUM of $14 billion and a five-year performance return of 82%, GDX offers investors access to major global gold mining companies.

VanEck Vectors Junior Gold Miners ETF (GDXJ): VanEck

The VanEck Vectors Junior Gold Miners ETF is designed for those looking to invest in smaller, more speculative gold miners.

This fund has an AUM of $5 billion and a five-year performance return of 62%. It tracks the MVIS Global Junior Gold Miners Index, which includes small- and mid-cap gold miners worldwide.

Franklin Responsibly Sourced Gold ETF (FGLD): Franklin Templeton

Franklin Templeton offers a Gold ETF that is low cost, trades via the NYSE Arca, and where the gold is responsibly sourced. It has net assets of $104 million and a 3-year performance of 4.27%.

U.S. Global Go Gold and Precious Metal Miners ETF (GOAU): U.S. Global ETFs

The GOAU ETF provides exposure to gold miners and precious metals miners. It has total assets of $101 million, an expense ratio of 0.60%, and a 3-year performance of 8.6%.

These gold ETFs are a great way to diversify your portfolio and ensure exposure to this precious metal.

Before investing, it is essential to evaluate the different characteristics of each ETF to make an informed decision about which one will be most advantageous for you.

Let’s examine what factors should be considered when selecting a good gold ETF.

Key Takeaway: This article provides a comprehensive list of gold ETF tickers for investors looking to gain exposure to physical gold. Each option is rated based on its assets under management, five-year performance return and managing company. These top-performing funds provide an efficient way to access the benefits of investing in precious metals without having to store it themselves.

What to Look for in a Good Gold ETF

When deciding on a gold-centered ETF, investors should consider attributes like having an AUM of no less than $200 million and an expense ratio lower than 1%.

Consider factors like liquidity and investment strategy when choosing the best option for your portfolio.

This section will discuss these key aspects of selecting a suitable gold ETF.

Assets Under Management Thresholds

An important factor to consider while evaluating gold ETFs is their assets under management (AUM). A higher AUM indicates that the fund has attracted more investors and may offer better liquidity.

As a rule of thumb, you should aim for funds with at least $200 million in AUM to ensure stability and adequate market participation.

Expense Ratios Explained

The expense ratio represents the annual fee the managing company charges to cover administrative costs. Lower expense ratios are generally preferable since they leave more room for potential returns on your investment.

Aim for gold ETFs with an expense ratio below 1% to minimize fees eating into your profits.

Liquidity Considerations

• Average Trading Volume: Assessing average trading volume can help determine how easily you can buy or sell shares without impacting prices significantly. Higher trading volumes indicate greater liquidity which allows smoother transactions.
• Bid-Ask Spread: The bid-ask spread refers to the difference between buying (ask) and selling (bid) prices. A narrower spread is generally preferable, indicating higher liquidity and lower transaction costs.

Investment Strategies

Different gold ETFs follow various investment strategies to achieve their objectives. Some may focus on holding physical gold bullion, while others invest in shares of mining companies or a combination of both. Before investing in a gold ETF, it’s essential to understand the strategy driving its performance and associated market risks.

Having an understanding of what to consider when picking a suitable gold ETF for your portfolio, let’s look at some popular choices currently accessible.

When looking for a good gold ETF, it is important to consider factors such as assets under management thresholds, expense ratios, liquidity considerations and investment strategies.

Moving on from this discussion of what to look for in a good gold ETF, the next heading looks at direct exposure versus mining companies’ exposure.

Key Takeaway: When analyzing gold ETFs, factors such as AUM, expense ratio, trading volume and spread should be considered. Additionally, you should evaluate the underlying investment strategy to determine your exposure to market risks and potential returns. By carefully examining these key aspects of a gold ETF before investing, you can maximize your profits while minimizing costs.

Direct Exposure vs. Mining Companies Exposure

Investors have multiple ways to gain exposure to gold through direct exposure or mining companies’ shares. Knowing the discrepancies between these two paths could assist in making informed decisions on which form of investment is better for one’s fiscal objectives.

Direct Exposure Through Physical Bullion-backed Funds

One way to invest in gold is by purchasing shares of ETFs that hold physical bullion, such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU). These funds buy and store actual gold bars, allowing investors to gain exposure without dealing with the complexities of buying, storing, and insuring physical gold.

The value of these ETFs closely tracks the spot price of gold since their primary asset is the metal itself.

Pros:

• Pure play on gold prices
• No operational risks associated with mining companies
• Liquid investments that are easy to trade on major stock exchanges

Cons:

• No potential for dividend income from underlying assets
• It may not offer the same level of leverage as investing in mining stocks

Investing In Major And Junior Mining Companies

Investing in gold mining companies, such as those held by VanEck Vectors Gold Miners ETF (GDX) and VanEck Vectors Junior Gold Miners ETF (GDXJ), is another way to gain exposure to the precious metal while providing different levels of leverage.

These funds invest in a basket of major and junior mining companies that explore for, develop, and produce gold. The performance of these investments depends on factors like the efficiency of operations, management decisions, and overall market conditions.

Pros:

• Potential for dividend income from underlying assets
• Leverage to rising gold prices due to operational efficiencies or new discoveries
• Exposure to a diverse range of mining companies and projects

Cons:

• Risks associated with individual company performance, such as management decisions or operational issues
• Potential for increased volatility due to fluctuations in gold prices and market conditions

In summary, direct exposure through physical bullion-backed funds and investing in major and junior mining companies offer unique advantages.

Consider your investment objectives, risk tolerance, and desired level of diversification when choosing between these two approaches.

Direct exposure to physical bullion-backed funds can provide a low-cost and convenient way for investors to access gold investments. Investing in major and junior mining companies may offer greater potential returns but comes with additional risks.

With that said, diversification benefits and hedging against inflation with gold ETFs are important considerations when deciding how best to invest in precious metals.

Key Takeaway: Direct exposure through physical bullion-backed funds is a great way to gain direct exposure to gold prices without the hassle of buying, storing and insuring. On the other hand, investing in major and junior mining companies offers potential for dividend income and increased volatility due to fluctuations in market conditions. It’s essential to reflect on your investment aims when selecting the most suitable strategy.

Diversification Benefits & Hedging Against Inflation with Gold ETFs

ETFs based on gold can appeal to investors looking to diversify their portfolios and guard against inflation. Due to gold’s low correlation with other asset classes, incorporating gold ETFs into your investment portfolio can provide significant advantages. This section will explore these benefits in detail.

Portfolio Diversification Explained

Diversification is essential to any successful investment strategy, as it helps spread risk across various assets and sectors. By including investments that have different risk profiles or are not correlated with one another, you can potentially reduce overall portfolio volatility and enhance long-term returns.

• Low Correlation: Gold has historically exhibited a low correlation with stocks, bonds, and other traditional investments. This means that when stock prices fall or bond yields decline, gold prices may remain stable or even increase – providing balance within your portfolio.
• Risk Reduction: Including non-correlated assets like gold ETFs in your portfolio reduces the impact of market fluctuations on individual holdings. As a result, this can help protect your wealth during economic uncertainty or financial market stress.

Gold as an Inflation Hedge

In addition to its diversification benefits, many investors view gold as an effective hedge against inflation due to its historical performance during rising consumer prices.

Here’s why:

• Tangible Asset: Unlike paper currencies subject to devaluation through monetary policy actions such as quantitative easing or interest rate adjustments, gold is a tangible asset with intrinsic value. This makes it less susceptible to inflationary pressures.
• Historical Performance: Gold has often performed well during periods of high inflation, as investors seek refuge in assets that maintain their purchasing power. For example, during the stagflation period of the 1970s – characterized by stagnant economic growth and rising inflation – gold prices soared while stock markets struggled.

Incorporating gold ETFs into your investment portfolio can help you take advantage of these diversification benefits and provide a hedge against potential inflation risks. Understanding how these factors contribute to overall portfolio performance, you’ll be better equipped to decide which investments best suit your financial objectives.

Incorporating gold ETFs into your portfolio may be wise to protect against rising prices and diversify investments. Let’s explore how you can invest in gold ETF tickers through online brokers.

Key Takeaway: Gold ETFs offer a means for investors to spread out their holdings and guard against inflation. Investing in gold, which has historically shown a low correlation with stocks, bonds and other traditional investments, can reduce overall portfolio volatility while gaining protection from rising consumer prices.

How to Invest in Gold ETF Tickers

You can usually locate gold ETFs by exploring your broker’s website or online platform to purchase them. Consider using a dollar-cost averaging strategy when purchasing shares regularly to reduce risk and enhance returns over time.

Finding & Buying Gold ETFs Through Online Brokers

Investing in gold ETFs is relatively simple with the help of online brokers. These platforms allow individual investors to access various financial markets, including stocks, bonds, and exchange-traded funds (ETFs).

To get started:

1. Choose an online broker: Select a reputable platform that offers the specific gold ETF tickers you’re interested in investing in. Some popular options include TD Ameritrade, Fidelity Investments, and Charles Schwab.
2. Create an account: Follow the instructions from your brokerage firm to open an investment account.
3. Fund your account: Deposit money into your new investment account via bank transfer or other methods.
4. Browse for gold ETF tickers: Use the search function within your brokerage platform to locate desired gold-focused exchange-traded funds using their ticker symbols (e.g., GLD).
5. Purchase shares of selected gold ETFs: Once you’ve found the appropriate fund(s), follow your broker’s steps to buy shares at current market prices or place limit orders.

Dollar-Cost Averaging Strategy

When investing in gold ETFs, it’s essential to consider using a dollar-cost averaging (DCA) strategy. This approach involves regularly purchasing shares of an investment at fixed intervals and set amounts, regardless of market fluctuations.

By doing so, you can:

• Avoid the pitfalls of trying to time the market,
• Reduce risk by spreading out your investments over time,
• Potentially lower your average cost per share as markets fluctuate.

To implement a DCA strategy for gold ETF tickers:

1. Determine how much you want to invest: Decide the amount you’d like to allocate towards gold ETFs within your portfolio.
2. Select an investment interval: Choose how often you’ll purchase shares – monthly or quarterly are common choices.
3. Calculate the dollar amount per interval: Divide your desired investment by the number of intervals (e.g., $12,000 invested annually with monthly purchases would be $1,000).
4. Create automatic orders: Contact your broker about setting up recurring transactions for each selected Gold ETF ticker based on this plan.
5. Note that while Dollar – Cost Averaging can help reduce risks associated with Market Volatility, it does not guarantee profits or protect against losses. Conduct thorough research and consult with financial professionals before making investment decisions.

Investing in gold ETFs can be a great way to diversify your portfolio and hedge against market volatility. Before investing in gold ETFs, evaluating the potential risks associated with leveraged funds is essential.

Risks Associated with Leveraged Gold ETFs and ETNs

While leveraged gold exchange-traded funds (ETFs) and exchange-traded notes (ETNs) may seem attractive due to their potential for higher returns, they carry greater risks than non-leveraged options. Investors must understand these investments’ increased credit default risk before making decisions.

Understanding Leveraged Funds

Leveraged ETFs and ETNs are financial instruments that use debt or derivatives like futures contracts, swaps, or options to amplify an index’s daily performance. They aim to deliver multiples of the underlying asset’s return, such as 2x or 3x its daily performance. However, this leverage can also magnify losses when the market moves against your position.

For example, a 2x leveraged gold ETF could gain approximately twice the percentage of its underlying asset in an upswing market yet suffer double the losses when prices decline.

Conversely, if gold prices decrease by 1%, the fund would lose about 2%.

• Risk #1: When markets move unfavourably, leverage can lead to significant gains and substantial losses.
• Risk #2: The compounding effect over time might cause long-term investment results not to match expectations based on short-term performances.
• Risk #3: Leveraged funds typically have higher expense ratios than their non-levered counterparts due to additional management fees related to maintaining leverage positions using complex financial instruments.

Credit Default Risk in ETNs

Exchange-traded notes (ETNs) are debt instruments issued by financial institutions which promise to pay the return of a specific index or benchmark. Unlike ETFs, they do not hold any underlying assets and are subject to credit default risk. This means that investors could lose their entire investment if the issuer defaults on its obligations or goes bankrupt.

To assess this risk, investors need to review the credit rating of an ETN’s issuing institution before investing. Credit ratings provided by agencies like Standard & Poor’s and Moody’s can help determine the likelihood of an issuer defaulting on its obligations.

• Risk #4: Investors face potential losses due to credit default risk associated with ETNs’ issuers.
• Risk #5: Market conditions may impact liquidity and trading volumes for certain leveraged gold products, challenging buying or selling shares at desired prices.

In conclusion, while leveraged gold ETFs and ETNs might offer higher returns during favourable market conditions, they also carry increased risks compared to non-leveraged options.

Before investing in these complex financial instruments, understand how leverage works and potential downsides, such as compounding effects over time and credit default risks related to exchange-traded note issuers.

Key Takeaway: Leveraged gold ETFs and ETNs can offer higher returns but come with risks such as compounding effects over time and credit default risk. Investors should understand these potential downsides before taking the plunge to avoid getting burned.

Summary

Gold ETFs are a great way to diversify your portfolio and hedge against inflation.

When investing in one of the best gold ETFs, it is important to research the symbol, AUM (Assets under Management), 3-year performance, and management company and decide if you want direct exposure or mining companies’ exposure.

It’s essential to weigh the potential hazards of investing in leveraged Gold ETFs and ETNs before committing. With careful consideration of these factors, you can choose a gold ETF that meets your needs for long-term financial success.

FAQs – Frequently Asked Questions

What is the best-performing gold ETF?

The best-performing gold ETF is the SPDR Gold Shares (GLD). This fund has a low expense ratio of 0.40% and tracks the price of gold, making it an efficient way to invest in physical gold without storing or insuring it.

GLD also offers liquidity and flexibility, allowing investors to buy or sell shares as needed easily. Its yearly returns have been in the 5-14% range for over 10 years.

What is the best stock to track the price of gold?

The best stock to track the price of gold is SPDR Gold Shares (GLD). This ETF provides a practical and economical way to gain exposure to gold. It trades on the New York Stock

Exchange and holds physical gold bars, so it closely follows the spot price of gold.

Its low expenses make it an attractive option for long-term investments. With GLD, you can easily monitor changes in the market value of your holdings without having to buy or sell physical assets.

Are gold ETFs a good idea?

Gold ETFs may be a viable choice for individuals wanting to spread out their investments and protect against price hikes. Due to their volatility and susceptibility to market changes, gold prices must be considered before investing in gold ETFs.

Investors should research before investing in gold ETFs and understand their associated risks.

Additionally, there may be other more cost-effective ways of investing in gold, such as physical bullion or futures contracts.

Which gold ETF has the lowest tracking error?

The SPDR Gold Shares ETF (GLD) has the lowest tracking error of any gold ETF. It provides investors with a cost-effective way to gain exposure to gold prices without purchasing physical gold.

The fund’s cost ratio is 0.40%, and its annualized monitoring discrepancy in the last five years has been below 0.25%.

What is a Gold IRA?

A Gold IRA is a retirement account that allows you to invest in physical gold, silver, platinum and palladium. It can be either a traditional Individual Retirement Account (IRA) or a Roth IRA. With a Gold IRA, investors are able to diversify their portfolios with the security of physical precious metals while still taking advantage of tax-deferred or tax-free growth.

Read our list of the best Gold IRA companies.

Where can I find gold prices?

Prices of the gold market can be found on financial websites such as Bloomberg, CNBC, MarketWatch and Yahoo Finance.

The COMEX division of the CME Group provides real-time gold futures quotes, which can indicate how gold prices are changing in the short term.

What is the difference between a gold ETF and gold bullion?

Gold ETFs are exchange-traded funds that track the performance of gold prices. They are bought and sold on stock exchanges like any other security. By contrast, physical bullion is a tangible asset that can be held as an investment, traded or stored away for future use.

It would be best to entrust a professional who stores gold bullion in a vault on your behalf.