Learn more about ETFs
Exchange Traded Funds (ETFs)
Gold backed Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs) are traded on a variety of stock exchanges around the globe. These regulated financial products are designed to provide investors with exposure to the price performance of spot gold bullion. Many of the currently available products are backed by gold bullion held in secure vaults. This is a principal distinction from derivative-based products that track the gold price, but which are not wholly-backed by physical gold bullion.
The largest of the physical gold bullion backed ETFs is SPDR Gold Shares (GLD). Launched in 2004, GLD was the first such product to be made available in the US. Its primary listing is on the NYSE Arca. It was subsequently cross-listed on the Singapore Stock Exchange, the Hong Kong Stock Exchange, Bolsa Mexicana de Valores and the Tokyo Stock Exchange.
ETFs provides investors with a relatively cost-efficient and secure way to participate in the gold bullion market without the necessity of taking physical delivery of gold. By increasing investor understanding of the role gold plays within a balanced investment portfolio, ETFs have played a prominent role in establishing gold as a unique asset class.
Following the GLD launch, many more commodity ETFs have entered the market, which underscores the growing popularity of these products.
Financial advisors and other investment professionals can provide you with further details about gold-backed securities.
The “SPDR” trademark is used under license from The McGraw-Hill Companies, Inc. (“McGraw-Hill”). No financial product offered by SPDR® Gold Trust, or its affiliates is sponsored, endorsed, sold or promoted by McGraw-Hill.