These gains have come as investors anticipate interest rate cuts and against a backdrop of geopolitical turmoil. Gold has also been buoyed by central bank buying, with China, India and Turkey leading the way in the first half of 2024.
For many investors, gold is a tool for diversification. The precious metal is known for its ability to act as a safe haven and hence operates as a protective option when building a balanced portfolio.
Gold exchange-traded funds (ETFs) give investors a relatively easy way to get exposure to physical gold without having to worry about the extra hassle of buying and storing the metal — not to mention insuring it. Gold ETFs can also track a basket of gold-focused stocks, allowing investors to spread risk instead of betting on individual companies.
Below the Investing News Network has listed the four ASX gold ETFs and exchange-traded products (ETPs) that provide exposure to physical gold, and the two ASX gold ETFs that offer exposure to gold companies. The ETFs are listed by assets under management, and data was retrieved from each company’s website on July 23, 2024.
Total assets under management: AU$3.14 billion; current share price: AU$33.29
Previously known as ETFS Physical Gold, Global X Physical Gold is an ETP that promises a “low-cost and secure way to access physical gold via the stock exchange,” while avoiding the struggle of storage.
This ETP has a management fee of 0.4 percent.
Total assets under management: AU$875 million; current share price: AU$35.99
Owned by the Western Australian government, Perth Mint Gold is an ETP that tracks the international price of gold in Australian dollars. Investments are backed by gold bullion stored in the Perth Mint. Perth Mint Gold is the only gold product on the ASX that maintains a government guarantee for holdings.
This ETF has a management fee of just 0.15 percent, making it the lowest-cost physical gold ETF on the ASX.
Total assets under management: AU$584.71 million; current share price: AU$19.89
The BetaShares Gold Bullion ETF tracks the price of physical gold. It is backed by gold bullion stored by JPMorgan Chase in London. Although the ETF is based on physical gold, you do not own physical gold by owning the ETF. Rather, when you sell shares of your ETF, you receive the cash equivalent of the gold.
This ETF has a management fee of 0.59 percent.
Total assets under management: AU$564.9 million; current share price: AU$56.28
GDX provides a yearly dividend, currently set at 1.65 percent. The ETF has a management fee of 0.53 percent.
Total assets under management: AU$74.19 million; current share price: AU$6.32
The Betashares Global Gold Miners ETF allows Australian investors to add a diverse range of global companies in the gold mining space to their portfolio by focusing on the biggest ex-Australia precious metals companies.
This ETF has a management fee of 0.59 percent.
Total assets under management: AU$63.3 million; current share price: AU$35.86
The VanEck Gold Bullion ETF allows investors to enjoy the reliability of the gold market without the need to purchase physical gold. It is backed by physical gold bullion bars sourced from Australian gold producers.
This ETF has a management fee of 0.25 percent.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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