Underground Journal

What is the Best Gold ETF Fund?

Tired of watching the gold price continue to climb without you on for the ride?  You may not be investing in gold because you think it’s too much of pain to buy, hold, and store gold bullion.  But there is a much better and easier way to invest in the price of gold; a gold ETF fund.

With a gold fund, you can simply buy shares on the major stocks exchanges just like you would any other stock.  Your investment would then follow the price of gold proportionately.  So if gold rose 5% one day, so would your investment.  Conversely if it declined 5%, so would your ETF shares.  What’s truly great about a gold ETF however is the fact that you simply don’t have to worry about storing the gold, because you don’t actually own it.  Instead you own shares in it.  This is an important distinction however especially for those wanting to physically own gold in case of major world financial crises.

So if you’ve now decided you want to buy a gold ETF, probably the next question would be which is the best gold ETF fund to buy or are they all relatively the same?  Well, in actual fact despite the differences in how much physical gold the fund holds and where, they are all very similar.  However I like to look at two main factors for determining a good ETF; high liquidity and a low expense ratio.

The one ETF gold fund that possess both of these factors and is also probably the most popular bullion ETF to buy is the SPDR Gold Trust (GLD).  It trades on the NYSE with an average daily volume of roughly 20 million and a low expense ratio of 0.4%.  Of course there are other factors to consider when purchasing a bullion ETF but you can’t really go wrong with this one.

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