5 Best Gold ETFs to Invest in May 2024

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During economic expansion times, gold exchange-traded funds were not commonly found in investment portfolios. Nevertheless, investors are now looking for safe havens such as precious metals due to the current market uncertainty. Inflation plays a vital role in the increased fascination with gold, as it has a consistent history of preserving its value when currencies weaken. Increasing interest rates are also a factor, as the Federal Reserve seeks to address inflation. Gold ETFs offer investors a variety of choices as a convenient substitute for owning physical gold. Choosing the top-performing ETFs is essential, taking into account performance, expenses, liquidity, and overall benefits to match investment objectives. Let’s explore leading gold ETF options for investment, taking into account factors such as performance, costs, liquidity, and overall advantages.

1. VanEck Gold Miners ETF (GDX)

Inception Date: May 16, 2006
Assets Under Management: $13.93 billion (as of May 17, 2024)
Expense Ratio: 0.50%
Holdings: Gold mining company securities

VanEck Gold Miners ETF (GDX) provides a distinctive opportunity to invest in the gold industry through a focus on gold mining firms instead of the metal itself. This ETF consists of about 50 top mining firms like Newmont Corp. and Barrick Gold Corp., offering varied exposure.

Different from other gold ETFs, GDX distributes dividends, providing an additional source of income for your investment. Nevertheless, it is essential to acknowledge that the performance of this ETF may be impacted by variables other than the price of gold, such as mining activities and market changes.

2. SPDR Gold Shares (GLD)

Inception Date: November 18, 2004
Assets Under Management: $63.05 billion (as of May 17, 2024)
Expense Ratio: 0.40%
Holdings: Physical gold

SPDR Gold Shares (GLD) is the largest and most popular gold ETF in the market. Its large size of almost $63 billion in assets provides stability and high liquidity, enabling investors to easily purchase and divest shares.

GLD holds physical gold, giving investors direct access to the price movement of the metal. Although its expense ratio is higher than some other gold ETFs, its reliability and market presence make it a competitive option for any investment portfolio.

4. abrdn Physical Gold Shares ETF (SGOL)

Inception Date: September 9, 2009
Assets Under Management: $3.155 billion (as of May 17, 2024)
Expense Ratio: 0.17%
Holdings: Physical gold

The abrdn Physical Gold Shares ETF (SGOL) is an attractive option for those seeking a low-cost gold investment. With an expense ratio of just 0.17%, SGOL is one of the most cost-effective gold ETFs on the market.

The fund holds physical gold bars stored in secure vaults in Zurich and London, and it publishes a list of its gold holdings online, offering excellent transparency.

With over $3 billion in assets under management, SGOL provides a solid investment option with decent liquidity.

5. GraniteShares Gold Trust (BAR)

Inception Date: August 31, 2017
Assets Under Management: $1.05 billion (as of May 17, 2024)
Expense Ratio: 0.17%
Holdings: Physical gold

GraniteShares Gold Trust (BAR) offers an appealing opportunity for investors looking for a cost-effective way to invest in gold. SGOL is one of the most affordable gold ETFs available, boasting an expense ratio of only 0.17%.

The fund keeps gold bars in safe vaults in Zurich and London, and it provides a list of its gold holdings on the internet, ensuring great transparency.

SGOL offers a stable investment choice with reasonable liquidity, managing more than $3 billion worth of assets.

Conclusion

Selecting the appropriate gold ETF relies on your investment objectives, willingness to take risks, and personal preferences. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) provide great liquidity and significant aassets under management, making them ideal for investors looking for stability and easy trading. abrdn Physical Gold Shares ETF (SGOL) and GraniteShares Gold Trust (BAR) offer affordable choices with great transparency for individuals seeking reduced fees. Finally, the VanEck Gold Miners ETF (GDX) provides a diversified strategy by investing in gold mining corporations and including the opportunity for receiving dividends. Consider your investment strategy and choose the ETF that matches your financial goals the most.

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