Physical Gold ETFs
These ETFs directly track the price of physical gold. They are generally considered safer as they are backed by real gold stored in vaults.
Diversify your portfolio with gold without the constraints of physical storage
Gold ETFs: The Art of Investing in Gold via Financial Markets
Why Invest in Gold ETFs?
Gold ETFs offer a modern and accessible way to invest in gold, combining the traditional security of this precious metal with the flexibility of exchange-traded financial products. Discover how these instruments can enrich your investment strategy.
Start investing in gold with BoursobankWhat is a Gold ETF?
A Gold ETF (Exchange Traded Fund) is an index fund traded on the stock exchange that aims to replicate the price of physical gold. It offers investors exposure to the gold market without requiring the purchase, storage, and insurance of physical gold bars.
Technically, a Gold ETF is often classified as an ETC (Exchange Traded Commodity), specializing in tracking exchange-traded commodities.
One of the main advantages of Gold ETFs lies in their low management fees, generally between 0.1% and 0.9%, which has little impact on your investment return.
How Does a Gold ETF Work?
Unlike buying stocks where you indirectly own a part of each company, investing in a Gold ETF does not make you the owner of physical gold. It is rather an investment in 'paper gold'.
The management company invests in debt backed by the price of gold, rather than directly buying gold bars. It is important to note that many trusts do not have sufficient gold stock to cover all investors in case of simultaneous withdrawals.
Buy Gold ETFs on PEA with BoursobankDifferent Types of Gold ETFs
There are mainly two types of gold-related ETFs:
Gold Mining ETFs
These ETFs invest in stocks of companies involved in gold extraction and processing. They offer indirect exposure to the gold price but are also influenced by the performance of mining companies.
Gold ETFs vs Physical Gold: Advantages and Disadvantages
Management Fees
Gold ETFs generally have low management fees (about 0.3% on average), while physical gold can incur significant storage and insurance costs.
Storage
Gold ETFs require no physical storage space, unlike gold bars or coins which must be kept in a secure location.
Security
Physical gold offers tangible security in case of a major economic crisis, while Gold ETFs remain dependent on the financial system and the issuing company.
Frequently Asked Questions
What are the best Gold ETFs?
Among the most popular Gold ETFs are: iShares Physical Gold, SPDR Gold Shares, and Amundi Physical Gold ETC. For ETFs focused on gold mines, consider the VanEck Vectors Gold Miners ETF or iShares MSCI Global Gold Miners ETF.
How can I put gold in my PEA?
The PEA does not allow direct inclusion of Gold ETFs. However, you can invest in a commodity ETF that contains gold, such as the iShares Commodities Swap.
How can I buy gold on the stock market?
You can buy gold on the stock market via Gold ETFs, gold certificates, or shares of gold companies. Choose a reliable trading platform and make sure you understand well the product you are investing in.
Conclusion: Gold ETF, a Modern Diversification Tool
Gold ETFs offer a modern solution for investing in gold, combining the traditional safe haven of this precious metal with the liquidity and easy access of exchange-traded products. Although they present some risks, they are an excellent means of diversifying your portfolio, particularly in times of economic uncertainty. As with any investment, it is crucial to understand the product well and evaluate its place in your overall investment strategy.
Invest in Gold via CTO with Trade RepublicIlane Lopez
Founder / CTO
