Gold prices rose to a six-month high to reach $2,013.10 a troy ounce on November 27. An expected stabilization in the interest rate environment and its safe-haven status amid macro headwinds are behind the ascent in gold prices. As gold prices continue to shine to new highs, Aberdeen Standard Physical Gold Shares ETF (SGOL) and SPDR Gold MiniShares Trust (GLDM) are two Exchange-Traded Funds (ETFs) that one could consider.
Let’s examine why SGOL and GLDM are attractive bets. Meanwhile, investors can learn more about gold ETFs here.
Aberdeen Standard Physical Gold Shares ETF
Introduced in September 2009, the Aberdeen Standard Physical Gold Shares ETF aims to mimic the price performance of gold bullion after accounting for the Trust’s expenses. The Trust possesses physically allocated gold bullion bars securely stored in vaults.
What stands out is that SGOL has delivered a notable gain of over 62% in the last five years. Moreover, it has a low expense ratio of 0.17%. The fund’s assets under management (AUM) stand at $2.72 billion.
SPDR Gold MiniShares Trust
Launched in June 2018, the SPDR Gold MiniShares ETF is designed to track the prices of gold. GLDM provides investors with one of the most competitive expense ratios among the U.S.-listed physically gold-backed ETFs.
GLDM has an AUM of $6 billion and an exceptionally low expense ratio of 0.10%. Further, it has gained over 62% in five years.
Bottom Line
GLDM and SOL offer a convenient way for investors to access the gold market, diversify their portfolios, and generate steady returns. Further, both these ETFs carry a low expense ratio, which is positive.
