SPDR Gold Shares ETF Investing Guide

The SPDR Gold Shares ETF is a popular investment option for those looking to diversify their portfolio with a physical asset like gold. It's backed by a large amount of gold, with over 40 million ounces held in custody.

Investing in the SPDR Gold Shares ETF is relatively straightforward, requiring a minimum investment of $100. This makes it an accessible option for individual investors.

The ETF tracks the price of gold, meaning its value will fluctuate based on market conditions. This can be a good option for those who want to invest in gold without physically holding the metal.

One benefit of the SPDR Gold Shares ETF is its low fees, with an expense ratio of 0.35%. This means investors can keep more of their returns, rather than paying high management fees.

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Investing in SPDR Gold Shares is a great way to add some stability to your portfolio. Historically, gold has held its value well during times of financial instability.

This fund allows you to own a share of physical gold without the risks and costs of owning actual gold bullion.

If you're interested in investing in gold, you're not limited to the SPDR Gold Shares (GLD). There are other ETFs that track the price of gold, such as the iShares Gold Trust (IAU) which also tracks the metal with a lower expense ratio.

One such alternative is the Aberdeen Standard Gold ETF, which has a lower expense ratio of 0.17% but has only around $2.05 billion in net assets as of June 2020.

If you're looking for a more popular option, the SPDR Gold Shares (GLD) is by far the most liquid of the gold ETFs.

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Investors can use GLD to speculate on the price of gold, making it easier to buy and sell shares of the ETF compared to physical gold.

GLD is a good option for portfolio diversification, as it has a low beta of around -0.02 and is less volatile than the overall market.

The fund doesn't necessarily follow the market's movements, making it a good way to diversify holdings with stocks and other types of assets.

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However, investors should be aware that GLD is deemed a collectible by the IRS, which means profits are taxed at a higher rate of 28% versus the normal long-term capital gains rate.

To avoid this higher tax rate, investors can exit their position in under a year or hold the shares in an IRA or another tax-deferred retirement account.

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If you're considering investing in gold, you're not limited to just one option. There are several competitors and alternatives to the SPDR Gold Shares.

One of the closest competitors is the iShares Gold Trust, which also tracks the price of gold but has a lower expense ratio than the SPDR Gold Shares.

The Aberdeen Standard Gold ETF is another option, but it has a relatively small net asset base of around $2.05 billion as of June 2020.

The iShares Gold Trust has a lower expense ratio, making it a more cost-effective option for investors.

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There are also other ETFs that track the price of gold, but the SPDR Gold Shares is by far the most popular and liquid of them all.

Here's a brief comparison of the main competitors:

It's worth noting that the Aberdeen Standard Gold ETF has a relatively small net asset base, which may be a consideration for some investors.

The SPDR Gold Shares has a long history, dating back to 2004 when it was first introduced. It was the first gold exchange-traded fund (ETF) ever created.

This ETF has seen significant growth over the years, with over $50 billion in assets under management as of 2022. Its popularity can be attributed to the growing demand for gold as a safe-haven asset.

The fund has consistently outperformed the S&P 500 index during times of market volatility, making it an attractive option for investors seeking to diversify their portfolios.

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The performance of an investment can be a crucial factor in determining its overall value. The current year's performance is 2.54%.

Over the long term, the investment has shown a remarkable growth of 459.12% since its inception. This is a testament to its consistent performance over the years.

The investment's high point in the past year was 256.59%, indicating a significant increase in value. However, it's essential to note that the maximum loss in the past year was -4.58%, highlighting the importance of risk management.

The investment's alpha, a measure of its excess return compared to the market, has been relatively stable over the past 10 years, with an average alpha of -0.36%. This suggests that the investment has generally performed in line with the market.

The investment's beta, which measures its volatility relative to the market, has been relatively low over the past 10 years, with an average beta of 0.99%. This indicates that the investment has been relatively stable compared to the market.

Here's a summary of the investment's performance metrics:

These metrics provide a comprehensive view of the investment's performance and can help investors make informed decisions about their investment portfolio.

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The price of the investment peaked at $120 in 2015, making it a highly profitable option for those who bought in at the right time.

In 2018, the price dropped to $80 due to a change in market conditions.

The price fluctuated between $80 and $100 from 2019 to 2020, showing a steady recovery from the previous year's drop.

A total of $90 was the average price of the investment from 2015 to 2020, giving investors a clear idea of its historical value.

The investment's price was at its lowest in 2020, reaching $60, but it quickly recovered to $90 by the end of the year.