This Gold ETF is Simple and Accessible

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

One of the many uses of exchange-traded funds (ETFs) is their ability to allow investors exposure to commodities without having to worry about futures contracts or owning the underlying physical commodity. The SPDR Gold Shares (GLD) is one such ETF, giving investors the capability to invest in physical gold bullion without having to handle buying and selling it themselves.

Gold often is used as an investment because its performance tends to run counter to the stock market. This potential rise in gold is due to its innate value, since it traditionally is seen as a safe haven for assets in treacherous markets. Historically, gold performs well when the market goes down, so the precious metal can provide a good way to make money in rough times.

In 2014, GLD lost 2.19% of its value, as investors primarily chose to speculate in riskier equities while market sentiment was bullish. So far this year, though, GLD has risen 1.25%, as the market has been more volatile. GLD’s $27.4 billion in assets correspond to its holdings and may fluctuate with the price of gold.

GLD is the world’s ninth-largest ETF. Though GLD carries a 0.40% expense ratio, buying and selling physical gold would incur expenses that would likely be far greater, so the fund still provides an attractive possibility for gold ownership without the hassle of finding a place to store it safely.


Gold has fallen a long way from its 2011 heights. That drop suggests it may have room to run, especially if the stock market undergoes a concerted pullback. For gold bugs and investors who think now is the time for a golden rally, you won’t find a more direct ETF investment than SPDR Gold Shares (GLD).

Exclusive  Seeking Shelter Behind Economic Moats

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed it, I encourage you to read my e-letter column from last week about a small-cap ETF. I also invite you to comment in the space provided below.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor