The iShares Gold Trust Micro ETF, the GraniteShares Gold Trust and the Abdn Physical Gold Shares ETF are the highest-performing gold ETFs. The largest and most liquid gold ETF is the SPDR Gold Shares. It is the standard of reference for investors seeking direct exposure to the price of the yellow metal. The only assets of the ETF are gold bars, which it stores in secured vaults.
Gold ETFs offer indirect exposure to the price of gold, so the shareholders of gold ETFs do not take possession of the physical asset. While the price of gold can fluctuate significantly in the short term, gold as an asset has historically provided a reliable store of value. Gold ETFs offer indirect exposure to gold price movements without having to physically hold the underlying asset. To achieve this goal, gold ETFs can track the price of gold bars or invest in gold futures contracts.
The IAU performed slightly below the LBMA gold price and well below the S%26P 500 index in all periods reviewed. The Aberdeen Standard Physical Gold Shares (SGOL) ETF is an exchange-traded fund that seeks to track the price of physical gold. SPDR Gold Minishares (GLDM) performed slightly better than its gold price benchmark index, which is to be expected from a fund that passively tracks an index or commodity. The SGOL performed slightly below the LBMA gold price and well below the S%26P 500 index in all periods reviewed.
The advantage of owning a gold mining company ETF instead of a gold price ETF is that it can generate higher returns. Examples of indirect investments in gold are gold ETFs, gold futures, gold mining stocks, mutual funds and ETFs that hold gold mining stocks and eligible gold stock options or ETFs. Those investments and shareholder returns allow gold mining companies to potentially offer better total returns compared to gains in the price of gold. This gold ETF offers the same direct exposure to the price of gold, since it also has gold ingots, but at a lower cost.