Top 12 Gold ETFs Worth Buying in 2021
As an investor, you mostly tend to rely on investing in asset classes like bonds, stocks, and even cash. These investments may serve as a way of making your investments count, but every investor has a mind to grow, and you also should. The Gold investments allow you to gather a diversified investment portfolio by adding other investments to your investing line.
The gold investment serves as a store of value being used as coinage, jewelry, and even industrial electronics. The gold investments are trustable in that they are not affected by rising inflation and even political instability, making them the best investments for you to trust.
How to Invest in Gold ETFs? How to Buy Gold ETF?
ETF (Exchange-Traded Funds) is one of the ways of investing in gold. The ETFs allows you as an investor to own small amounts among many investments within a single fund. Investing or buying a gold ETF is much easy for you; you only need to have a Demat account together with a trading account, then choose a gold ETF and place an order.
Best Gold ETFs for Q3 2021
Here are the best Gold ETFs you can invest in;
1. SPDR Gold Trust
2. iShares ETF Gold Trust
3. Van Eck Merk Gold Miners ETF
4. Van ECK Vectors Junior Gold Miners
5. Aberdeen Standard Physical Gold ETF
6. Granite Shares Gold Trust ETF
7. Sprott Physical Gold and Silver Trust ETF
8. Direxion Daily Gold Miners Index Bull 2x Shares
9. ProShares Ultra Gold ETF
10. INVESCO DB Precious Metals ETF
11. Perth Mint Physical Gold ETF
12. VanEck Vectors Gold Miners ETF
SPDR Gold ETF Trust
The SPDR Gold ETF trust offers you as an investor an innovative, secure, and cost-efficient way to invest in the gold market. This is the largest physically traded ETF that you can invest in all over the globe. This ETF allows you to buy gold using their brokerage or individual retirement account.
This fund is benchmarked to gold ingots; thus, if you invest in it, you get the easiest way of exposing your portfolio to different gold prices without necessarily owning the physical gold.
SPDR Gold ETF trust is cost-effective to you as an investor as it requires an expense ratio of 0.4% and assures you shipping costs, insurance of your goods, and safe storage of gold bars.
iShares ETF Gold Trust
If you need much exposure to this famous metal, then you need to invest through Shares ETF Gold Trust. This ETF holds gold bars in the vault that allows you as an investor to free yourself from looking for a place to store the metal. This design makes it easy for it to track the spot price of the invested gold bullion.
If you are a cost-conscious investor, then iShares ETF Gold Trust is the best ETF to go for. It only requires an expense ratio of 0.25% and guarantees you a 3-year average return of 5%.
Van Eck Merk Gold Miners ETF
Van Eck Merk Gold Miners ETF introduces you to the most cost-effective and convenient way to invest in the gold business. This gives you an opportunity to invest in the gold business through buying shares and take physical gold in exchange for the already bought shares.
The Van Eck Merk Gold Miners ETF also has an objective of making the shares you buy reflect the performance of the gold business and the price of the gold less the expenses they incur. This makes sure that this ETF remains viable throughout.
Van Eck Merk Gold Miners ETF only requires an expense ratio of 0.53% and assures you a 3-year average annual return of 22.7%.
Van ECK Vectors Junior Gold Miners ETF
This type of ETF first closely replicates its price and yield performance before setting the fees and other expenses. Van ECK Vectors Junior Gold Miners ETF invests 80% of its total assets in companies that encompass the index.
With Van ECK Vectors Junior Gold Miners ETF, you will get the opportunity to associate with companies that generate at least 50% of their revenues from the gold business. Van ECK Vectors Junior Gold Miners only requires you to have an expense ratio of 0.54%. You are assured of a 1-year return of 47.49%.
Aberdeen Standard Physical Gold ETF
The Aberdeen Standard Physical Gold ETF allows you as an investor to purchase and redeem physical gold and not on paper. This ETF has an advantage over the other ETFs as you physically see, examine, and even store your gold.
Aberdeen Standard Physical Gold ETF is further considered to be a cheap ETF to invest in as it only requires an expense ratio of 0.17% on an annually basis
Granite Shares Gold Trust ETF
The gold business involves a lot of cash, and as a cautious investor, you need to trust a certain ETF for you to invest in fully, and Granite Shares Gold Trust ETF is one of the ETFs that you can trust.
Granite Shares Gold Trust ETF makes sure that your business is secure and trustable by partnering with BAR. This structure makes sure that this ETF holds physical gold bars and also mandates it to do a physical audit of its vault value twice a year. This operation makes it legible and trustable.
With this ETF, you only incur an expense ratio of 0.17%, which ranks it among the lowest gold ETFs in the gold market.
Sprott Physical Gold and Silver Trust ETF
This is the best ETF to invest in if you could like to have access to the two most precious metals; gold and silver. Sprott Physical Gold and Silver Trust ETF allocate about 66% of its assets on gold bullion and 34% of its assets to silver bullion.
Sprott Physical Gold and Silver Trust ETF is trustable and viable as it holds over $4 billion of assets. You will be required to incur an annual expense ratio of 0.53% and other delivery fees.
Direxion Daily Gold Miners Index Bull 2x Shares
This is the most-followed ETF for gold business. It always out-smarts its competitors by supplying two times as much gold as other ETFs do. If you want to invest as a day trader in the gold business, then Direxion Daily Gold Miners Index Bull 2x Shares is the best ETF for you; it assures you an average of 5 million shares daily with total assets totaling to $1 billion.
You need to be careful with Direxion Daily Gold Miners Index Bull 2x Shares as it is easy to fall on the wrong side of this business. Because of its structure, it is a bit expensive as it exposes you to an annual expense ratio of 1.17%. You need to calculate your business goals and time limits before you consider investing in this ETF.
ProShares Ultra Gold ETF
The ProShares Ultra Gold ETF is specifically attached to the gold bullion itself and not mining. This structure allows you to directly attach your investments to the metal as mining ETFs may be affected by many other factors apart from the price.
Although ProShares Ultra Gold ETF comes with a high expense ratio of 0.95%, it is still the best gold exchange trade vehicle.
INVESCO DB Precious Metals ETF
INVESCO DB Precious Metals ETF is another ETF that is best for you if you want to deal with gold bullion and silver metal. It seeks to track the optimum yield of the two precious metals and their excess returns. This fund invests in future gold contracts, an attempt that seeks to track their corresponding index.
INVESCO DB Precious Metals ETF requires you to incur an expense ratio of 0.75% and, in turn, assures you an annual average return of 29.52%
Perth Mint Physical Gold ETF
This ETF investment seeks to provide you as an investor with an opportunity in the gold business through buying shares, but the gold bars are securely stored by the custodial sponsor. With the Perth Mint Physical Gold ETF, you will be required to incur an expense ratio of 0.18% with an annual assurance return of 28.97%.
VanEck Vectors Gold Miners ETF
VanEck Vectors Gold Miners ETF allows you as an investor to access big stocks in the gold sector. You don’t need to do research on the best gold market as this ETF allows you access to different big names in the gold market. This ETF is composed of over 50 major mining stocks that make it easy for you to play gold through equity investments.
You only require an expense ratio of 0.52% to start trading with VanEck Vectors Gold Miners ETF.
What are Gold ETFs?
As an investor or individual planning to invest in a gold business, you need to understand the gold ETF as exchange-traded funds that give you exposure to gold business without having direct contact with this precious metal on a direct purchase, resell or store.
Some other ETFs allow the issuing company to buy stock in gold-related companies and store the gold bullion. As an investor, you buy the shares in the fund when the price rises or falls.
The 2 Main Types of Gold ETF
The Gold ETFs are classified into two broad categories that you can choose from;
· The ETFs that focus on investing in Gold metal directly
· The ETFs that focuses on investing in the companies that deal with the gold business.
How Do Gold ETFs Work?
The gold ETFs work in two ways depending on the type you choose to invest in. the first type of ETF allows you to directly purchase, store and resell the gold bars while they assist you in tracking the market price of the gold, while the second type of ETFs the issuing company it the one obligated to buy stocks in the gold-companies, and you as an investor buy shares through the fund.