How ETFs can help advisers access gold
With gold prices on the rise and retail investors keen to access the trend, which ETFs offer exposure to the asset?
According to Money Management’s Investment Centre, there are 16 dedicated gold portfolios available in the Australian universe, seven of which are ETFs.
These are:
- Betashares Global Gold Miners ETF Currency Hedged
- Betashares Gold Bullion ETF (AUD Hedged)
- Global X Gold Bullion ETF AUD
- Global X Physical Gold
- iShares Physical Gold ETF DIS AUD
- VanEck Gold Miners ETF
- VanEck Vectors Gold Bullion ETF
Over one year to 24 June, the best performing ETF has been Betashares Gold Bullion ETF which has returned 16.9 per cent followed by VanEck Vectors Gold Bullion ETF which has returned 16 per cent.
Over three years to 24 June, the best performing ETF has been Global X Physical Gold which has returned 12.4 per cent.
There may be other ETFs that include access to gold via a commodities or precious metals theme.
Commenting on the popularity of gold, Imaru Casanova, portfolio manager for gold and precious metals at VanEck, said: “The price of gold has been supported this year by strong buying from central banks and robust demand from Asia, especially China. Rising geopolitical tensions in the Middle East have also contributed to gold’s strength.
“Gold surged to a record US$2,450 in May, driven by strong central bank buying and Asian demand. Gold equities continued to outperform, but with over 50 elections globally in 2024, country risks are in focus.”
Shaokai Fan, global head of central banks and head of Asia-Pacific at the World Gold Council, commented: “Extraordinary market pressure, unprecedented economic uncertainty and political upheavals around the world have kept gold front of mind for central banks. Many of these institutions have become more aware of the asset’s value as a way to manage risks and diversify their portfolios.
“While influences like price may temporarily slow down purchases in the near term, the broader trend remains in place as managers recognise gold’s role as a strategic asset in the face of ongoing uncertainty.”
AUTHOR
Laura Dew
Recommended for you
Stronger fund flows and a shift to higher-margin funds has benefitted GQG Partners lately but investors are underestimating the risk of performance mean reversion, according to Morningstar.
Australia saw one of the most severe underlying dividend declines in the world in the second quarter of 2024, according to Janus Henderson.
With more fund managers looking to outsourced providers, two experts examines how this is affecting the local talent landscape in Australia for graduates looking to enter the sector.
Lazard Asset Management has expanded its investment menu for Australian investors with a new Japanese equity fund.
