10 Gold ETFs: Is it Time to Go for Gold?
This article was originally published on ETFTrends.com.
The top 10 gold ETFs are looking shinier as a hedge against market declines as investors decide if it's finally time to go for the gold.
Is it Time to Go for the Gold?
With big drops in the market February and all the shifts happening on the national level, commodity stocks like gold are one sector that investors can depend on despite inflation pressures for U.S. consumers and businesses.
"Gold and related gold ETFs were golden in the first quarter of 2018 relative to other assets. The SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and other gold ETFs notched positive first-quarter performances while the S&P 500 finished lower by 1%," according to Nasdaq.
Related: Golden First Quarter for Gold ETFs
Here is a look at how the top 10 ETFs with gold exposure are doing YTD.
Top 10 ETFs with Gold Exposure
| ETF | Assets | YTD | ||||||
| SPDR Gold Trust Commodity (GLD) | $36.23 billion | 1.73% | ||||||
| iShares Gold Trust Commodity(IAU) | $11.62 billion | 1.76% | ||||||
| ETFS Physical Swiss Gold Shares Commodity (SGOL) | $1.13 billion | 1.73% | ||||||
| PowerShares DB Gold Fund Commodity (DGL) | $192.69 million | 1.55% | ||||||
| Van Eck Merk Gold Trust Commodity (OUNZ) | $145.39 million | 1.56% | ||||||
| VelocityShares 3x Long Gold ETN Commodity (UGLD) | $120.30 million | 2.42% | ||||||
| DB Gold Double Long ETN Commodity (DGP) | $114.75 million | 2.76% | ||||||
| ProShares Ultra Gold Commodity (UGL) | $95.29 million | 2.16% | ||||||
| ProShares UltraShort Gold Commodity (GLL) | $30.01 million | -3.08% | ||||||
| DB Gold Double Short ETN Commodity (DZZ ) | $23.42 million | -2.61% | ||||||
Gold is a Safe Haven for Now
Although chances of four interest rate hikes in 2018 have reduced as of now, hikes have a negative impact on gold, since the precious metal is a non-yielding asset and it may not be the safe-haven investment that investors think it is.
Related: Trumps Talk Lifts Gold ETFs
If we look at investment flows so far this year, money is flowing into broad based commodities indices.
Ole Hansen, head of commodity strategies at Saxo Bank told Gulf News,“The increased allocation that we have witnessed over the past few years in ETFs as a safe haven or diversifier has been increasing and that won’t go away anytime soon. If the US overheats, and that would lead to worries about disinflation or deflation, we would see a bigger correction in stock markets, and that would have a positive impact on gold,” he added.
Gold is looking attractive.
But will the attraction translate into something worth going after?
That's up to you.
For more information on the gold market, visit our gold category.
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