This ETF Destroys Apple Inc. (NASDAQ:AAPL) With A 10 Fold Return
Christian Magoon: Gold ETF returns 8% while Apple gains .8% over the last 6 months. The SPDR gold trust (NYSEARCA:GLD), has now delivered a 10 fold level of outperformance versus Apple Inc. (NASDAQ:AAPL) stock over the last six months. This low tech ETF owns physical bars of gold in order to closely track the price of gold. GLD is the largest gold ETF in the world with over $76 billion in assets under management. Conversely high flying Apple produces some of the most innovative tech products ever seen. It has become the largest market capitalized company in the world at $610 billion.
Here’s the Google Finance annotated performance chart highlighting the two popular investments’ six month performance.
GLD and AAPL have produced surprising returns over the last six months.
The recent outperformance of GLD may indicate a new trend forming in the wake of QE3. Hard assets like gold, represented by the largest gold ETF GLD, are rising in demand due to their scarcity and hedging ability against currency devaluation. These qualities may be too valued going forward for stocks like Apple to consistently outperform given normal business and product launch cycles.
In addition Apple carries the weight of massive expectations that often can lead to disappointments. Although these expectations have been exceeded by Apple in the past, new leadership and product launches are being increasingly scrutinized. Yet despite its less than stellar six month performance versus GLD, Apple has markedly beat GLD over the last year returning 9 times more for investors.
AAPL investors are still way ahead of GLD shareholders in the last year.
Apple is certainly coming off a bull run that has witnessed a few minor corrections. GLD on the other hand has been mostly flat over the last year. Could it be that these investments are simply in two different stages – consolidation versus recovery – for example? Whatever the case, shareholders in both investments are seeing new performance trends and should pay close attention. With potential catalysts swirling around both investments including a mini iPad launch, increased tensions with Iran and a Presidential election, Apple and GLD will certainly remain volatile. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
Christian Magoon is Publisher of GoldETFs.biz and IndiaETFs.com. He is also CEO of Magoon Capital, a strategic consultant firm to asset managers. Christian Magoon is an ETF insider, having launched over 40 ETFs in the United States to date. A widely recognized thought leader on finance and market issues, Christian regularly contributes to many financial media outlets. Prior to forming Magoon Capital in 2010, Christian was President of Claymore Securities (now Guggenheim Investments), where he built one of the fastest growing and most innovative ETF businesses in the country, gathering more than $3 billion in AUM in three years. He launched more than 40 ETFs, introducing many “firsts” to the U.S. market, including the first Frontier Markets, Sector Rotation, Solar Energy, Timber, BRIC and suite of China focused ETFs. Christian consistently provides his industry insights and knowledge as a commentator in the U.S. media speaking publicly on macro investment issues and ETF related topics. Follow him on Twitter @ChristianMagoon. In 2008, he was named by Institutional Investor News as one of the five people to watch in the U.S. ETF marketplace. In 2011,Financial Planning magazine dubbed Christian an “ETF Pioneer.”