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Experts Suggest A Gold ETF In Your Portfolio (GLD)

August 31st, 2009

gold“Experts suggest that investors must have about 10 to 15 percent exposure to the yellow metal either as a physical asset or in the form of a gold ETF.  The value of gold ETFs largely depend on how gold prices fluctuate globally. The complexity, complications and fees associated with ETFs make holding physical form of gold simpler. However, investors should weigh the advantages of ETFs that includes no making charges, risk of impurity, problems with resale and no wealth taxation,” Kavita Sriram Reports From Economic Times.

“By exposing a small portion of your portfolio to gold ETFs, you can accomplish ample diversification and hedging against inflation. With no burden of resale and hassles of safe-keeping, ETFs can be quickly liquidated, if desired. Since gold is not correlated to most other assets, they are a valuable asset for portfolio diversification. Not long ago, when the stock markets were taking a heavy beating across the globe, gold as an asset class surged to new heights, prompting investors to flock into its assuring fold,” Sriram Reports.

If you are keen on investing in gold or looking for portfolio diversification opportunities, go for the gold ETF (GLD) as an investment vehicle and reap the benefits in the long term.

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The investment (GLD) seeks to strive to reflect the performance of the price of gold bullion, less the Trust as expenses. The Trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the Trust terminates and liquidates its assets, or as otherwise required by law or regulation. The Trust is not managed like an active investment vehicle, and it’s not registered as an investment company under the Investment Company Act of 1940.

Chart for SPDR Gold Shares (GLD)

Another option connected to gold would be the Market Vectors Gold Miners ETF (GDX).  The investment (GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts of companies involved in the gold mining industry.

Here is a look at the top holdings within the miners ETF below:

TOP 10 HOLDINGS (GDX) ( 62.28% OF TOTAL ASSETS)  
Company Symbol % Assets
AGNICO EAGLE MINES (AEM) 4.58
ANGLOGOLD ASHANTI LT (AU) 4.93
BARRICK GOLD CP (ABX) 10.93
Buenaventura Mining Company Inc. ADR N/A 4.93
GOLDCORP INC COM NPV (GG) 9.61
IAMGOLD CORP COM NPV (IAG) 4.84
Kinross Gold Corporation N/A 4.61
NEWMONT MIN CP (HLDG (NEM) 7.86
Randgold Resources Limited (GOLD) 5.27
YAMANA GOLD INC COM NPV (AUY) 4.72

Chart for Market Vectors Gold Miners ETF (GDX)

GET A FREE TREND ANALYSIS  FOR ANY ETF HERE!



ETF BASIC NEWS, NYSE:GDX, NYSE:GLD


 

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