ETF of the Week: SPDR Gold Shares (GLD)

ETF Trends CEO Tom Lydon discussed the SPDR Gold Sahres (GLD) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

GLD is one of the most popular ETFs in the world, offering exposure to an asset class that has become increasingly important to the asset allocation process in recent years. GLD can be used in a number of different ways; some may establish short term positions as a way of hedging against equity market volatility, dollar weakness, or inflation. Others may wish to include gold exposure as part of a long-term investment strategy. GLD is a relatively straightforward product; the underlying assets consist of gold bullion stored in secure vaults. As such, the price of this ETF can be expected to move in lock step with spot gold prices. The physically-backed nature of this product eliminates any of the uncertainties introduced through futures-based strategies, though investors also have the option to approach this precious metal through futures-based funds such as UBG and DGL.