The GLD-Free Gold Bug ETFdb Portfolio is now available to ETFdb Pro members and those with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 40 all-ETF model portfolios available at ETFdb.com, is designed for investors who wish to construct a gold-centric portfolio that rounds out exposure across various physically-backed funds, while also tapping into the more lucrative commodity producers space. The investment thesis behind the GLD-Free Gold Bug ETFdb Portfolio may appeal to those who are looking to implement a tactical strategy that is well positioned to benefit from inflation fears and ongoing uncertainty; this portfolio could perform well going forward assuming that the precious metal retains its “safe haven” appeal amongst investors amidst economic turmoil.
This ETFdb portfolio is geared towards investors who wish to overweight exposure to gold, believing that the precious metal will continue to serve as an effective hedge against inflation while also maintaining the flexibility to appreciate in times of economic uncertainty. An allocation to gold may also appeal to investors looking to diversify their portfolio’s currency exposure; the yellow metal tends to rise as the U.S. dollar falls, serving as an excellent diversifying agent for many portfolios [see Special Report: Gold ETFs In Focus]. Additionally, gold holds worldwide appeal as an “insurance” asset class so to speak; gold has demonstrated the ability to deliver uncorrelated returns and maintain relatively low levels of volatility when equity markets are running wild in either direction.
Investors seeking exposure to the price of gold often times flock to the State Street Gold Trust (GLD), seeing as how this is the biggest and one of the most actively traded ETFs on the market period. Although GLD may hold appeal as a trading instrument given its unparalleled liquidity, this ETF may not be the best option for gold bugs interested in exposure over the long-haul. This ETFdb portfolio rounds out exposure to the precious metal using three unique physically-backed gold ETFs, all of which charge lower expenses than the ultra-popular GLD. The GLD-Free Gold Bug ETFdb Portfolio further distinguishes itself by featuring an equity component dedicated entirely to commodity producers of the precious metal; this portfolio is well-rounded across mining companies of all market cap sizes, while also making material allocations to “pure play” producers as well as riskier exploration firms.
The complete GLD-Free Gold Bug ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new BRIC-Or-Bust ETFdb Portfolio , as well as our Financials Free ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 40 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.