Best Performing Gold ETFs for Q3 2020

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Gold is a popular asset among investors wishing to hedge against risks such as inflation, market turbulence, and political unrest. Aside from buying gold bullion directly, another way to gain exposure to gold is by investing in exchange-traded funds (ETFs) that hold gold as their underlying asset. Some investors view ETFs as a relatively liquid and low-cost option for investing in gold compared to alternatives such as buying gold futures contracts or shares of gold mining companies. Still, the price of gold can see big swings, meaning ETFs that track it can also be volatile.

There are currently 9 ETFs focused on tracking the price of gold, excluding leveraged or inverse funds. Over the past 12 months, the returns from these ETFs have ranged between 25.2% and 31.8%. Among these ETFs, the best performer for the past year is the GraniteShares Gold Trust (BAR). Below, we’ll take a closer look at each.

  • Performance over 1 year: 31.8%
  • Expense Ratio: 0.17%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 566,416
  • Assets Under Management: $890.4 million
  • Inception Date: August 31st, 2017
  • Issuing Company: GraniteShares

The GraniteShares Gold Trust (BAR) is a grantor trust, which means that it protects investors by overseeing how its gold bars are purchased, stored, and sold. The trust stores its gold bullion in London, UK, and undergoes a physical audit of its gold holdings twice per year. As of an audit in November 2019, it held approximately 389,379 ounces of gold in its vault. Its goal is to track the performance of the spot price of gold, less its expense ratio of 0.17%.

  • Performance over 1 year: 31.8%
  • Expense Ratio: 0.18%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 281,214
  • Assets Under Management: $280.9 million
  • Inception Date: August 15th, 2018
  • Issuing Company: Perth Mint

The Perth Mint Physical Gold ETF (AAAU) holds physical bullion in its vault located in Perth, Australia. It is structured as a grantor trust and benefits from a guarantee given by the Government of Western Australia, assuring investors that the gold owned by the trust will be stored securely. Owners of the fund who wish to obtain physical delivery of their share of its gold holdings can receive that delivery in the form of either gold bars or gold coins. With an expense ratio of 0.18%, the fund’s objective is to track the spot price of gold after accounting for the fund’s expenses. As of May 11th, 2020, the fund held just under 165,000 ounces of gold bullion.

  • Performance over 1 year: 31.7%
  • Expense Ratio: 0.18%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 3,016,730
  • Assets Under Management: $2,138.3 million
  • Inception Date: June 25, 2018
  • Issuing Company: State Street SPDR

With an expense ratio of 0.18%, the objective of the SPDR Gold MiniShares Trust is to track the spot price of gold, less its expenses. The market price of the trust is intended to track the price of 1/100th of an ounce of gold, with the actual gold bullion owned by the fund being stored in London, UK. The fund’s sponsor, State Street SPDR, publishes a weekly update of the total amount of gold bullion which it holds. As of May 12th 2020, its most recent weekly figure was roughly 1,189,000 ounces.



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