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ETF's are a form of security designed to track a basket of stocks or the physical of an underlying product. A Gold ETF tracks either the price of gold or comprises a basket of gold shares designed to track the price of the underlying gold stocks and gain exposure to rises and falls in the price of gold. As an investing or trading vehicle, gold exchange traded funds are perceived as a safe haven during inflation or times or uncertainty. When there is a movement in gold, a gold ETF is a great way to trade short term momentum. As a loner term strategy, in times of inflation or perceived risk, a gold ETF can be used as part of an overall investment strategy. An example of a Gold ETF's based on gold bullion
prices is the Streettracks gold ETF (GLD ETF), as traded on the New
York
Stock Exchange. Investors and traders can purchase a position in this
fund in the same way they buy and sell shares. A gold bullion ETF
offers a degree of flexibility to every trader or investors arsenal. iShare Comex Gold (IAU) is another fund that is a
simple and effective way of replicating a similar investment in gold. Van Eck's Market Vectors Gold Miners ETF (GDX) The top 10 holdings of this Gold Exchange traded fund include the
following: There many other Gold ETf's listed on foreign
Exchanges. They include the following: ZKB Gold ETF: This product is listed and traded in
Switzerland. Central Fund of Canada (CEF): This fund keeps the bulk of its assets in gold and silver with an appointed custodian.
GOLD is an exchange traded fund based on the price
of gold bullion and traded on the Australian Stock Exchange. In London, you can also traded in gold exchange
traded funds. (BULL) tracks the DJ-AIG Gold Sub Index. (PHAU) is backed
by allocated gold bullion. Gold ETF's are also traded on the Indian, Japanese
and Paris exchanges. They are an alternative to holding the physical
asset or purchase futures on COMEX. Next Article: Commodity ETF  |
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