Apple Inc. (AAPL) Outshines The Gold ETF (GLD) For The Last 5 Years
“Gold is hitting new highs and many investors may be looking to add the metal to their portfolio. ETFs make gold easy to buy, but investors should take a different approach with gold than with stocks when considering where it fits in their portfolio. In the past five years, Apple Inc. (NASDAQ:AAPL) is up more than 600%, well ahead of SPDR Gold Shares’ (NYSE:GLD) nearly 200% run. The past five years have seen a string of successful new products from Apple (NYSE:AAPL), while inflation and financial crisis have lifted gold. Apple’s success shows that at the end of the day, creative minds are a better bet than the yellow metal. For many blue chip companies, however, the creativity and innovation hasn’t been nearly enough,” Don Dion Reports From The Street.
Dion goes on to say, “In the past five years, (NYSE:GLD) has trounced major blue chip companies such as Wal-Mart (NYSE:WMT), Exxon Mobile (NYSE:XOM) and Procter & Gamble (NYSE:PG) . Those companies have performed well relative to other stocks as measured by the S&P 500 Index, which was up an annualized 2.6% over the past five years. With reinvested dividends, investors holding these shares have done well and their returns over the past five years are solid, but many investors are looking for more. If they turned to Google (NASDAQ:GOOG), which is up more than 100% in the past five years, they’d find that it too has trailed gold by a healthy margin. Google hasn’t seen its share price advance nearly as much as Apple’s gain, but is most certainly a creative, innovative and financially successful company. Still, it was unable to beat the allure of the “barbarous relic.”
“However, it really doesn’t make sense to compare individual stocks to gold (unless they’re mining it). A more appropriate measure is to compare all stocks to gold. Instead of deciding between Apple and gold, investors should decide between stocks and gold, with stock selection a separate decision. The lesson for investors here is that gold is a hedge against risks that hurt stocks (and bonds too), rather than an alternative to stocks. Therefore, don’t base a decision to invest in gold on whether or not it did better or worse than particular stocks. Instead, think of it in relation to your total stock risk. When risks stemming from political decisions, including inflation, are high, adding some gold to a portfolio will hedge this risk,” Dion Reports.
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We have put together some chart details comparing Apple Inc. (NASDAQ:AAPL) and the SPDR Gold ETF (NYSE:GLD) for you to take a look at below:
LONG:
The investment ETF (NYSE: GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. 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 investment ETF (NYSE: 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 (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.
The Funds ETF (NYSE: GDXJ) investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”
The objective of ETF (NYSE: SGOL) the newly listed shares is to reflect the performance of the price of Gold bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in Gold as well as diversify their Gold holdings.
The investment ETF (NYSE: UGL) will seek to replicate, net of expenses, twice the performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.
The investment ETF (NYSE: DGL) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return. The index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.
The investment ETF (NYSE: DGP) seeks to replicate, net of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.
The objective ETF (NYSE: IAU) of the trust is for the value of its shares to reflect, at any given time, the price of gold owned by the trust at that time, less the trust’s expenses and liabilities. The trust is not actively managed. It receives gold deposited with it in exchange for the creation of baskets of iShares, sells gold as necessary to cover the trust’s liabilities, and delivers gold in exchange for baskets of iShares surrendered to it for redemption. The trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act.
SHORT:
The investment ETF (NYSE: DZZ) seeks to replicate, net of expenses, twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.
The investment ETF (NYSE: GLL) will seek to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.
It is really a gold rush today, it was been a rough time time that we thought that there will be no chance, but look at the status now.