ETF Database » UBG

Among Gold ETFs, Bigger Isn’t Always Better

Michael Johnston — Thu, 25 Aug 2011 11:00:47 +0000

As the roster of exchange-traded products has grown to nearly 1,300, many investors find themselves with the luxury of multiple options for establishing a position in a desired asset class. There are, for example, four different pharmaceutical ETFs, three homebuilder funds, and even two choices for playing the automotive industry. Once the ETF universe has been whittled down to funds that fit a given investment objective, there are a number of strategies for determining which of the candidates represents the most efficient way to play. It makes sense, for example, to compare ETFs on the basis of expenses, depth of holdings, liquidity, and tracking error. But many investors are much more basic in their assessments; there is a tendency among ETF investors to gravitate towards the biggest products in favor of smaller or lesser-known funds. If bigger is indeed better, this approach should work well; the size of a product [...]

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For ETF Investors, The Details Matter (Part II)

Michael Johnston — Mon, 17 Jan 2011 15:00:02 +0000

Last week we highlighted several often-overlooked nuances of popular exchange-traded products, detailing the surprisingly large impact that seemingly minor distinctions can have on a portfolio’s risk/return profile. From the weighting methodology employed by the underlying index to the choice between large caps and small caps for international equity exposure, many details that are often the subject of little consideration can play a big role in determining how an ETF portfolio performs. Below, we highlight five more easy-to-overlook nuances of ETF investing that are often felt in the bottom line [for more ETF insights, sign up for our free ETF newsletter]: 1. Futures-Based vs. Physically-Backed The introduction of commodity ETFs in recent years serves as an example of the impressive innovation that has become common in the ETF industry. Previously, exposure to natural resource prices was hard to come by for many investors. But the proliferation of exchange-traded commodity products has [...]

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How Contango Impacts ETFs

Michael Johnston — Tue, 12 Jan 2010 09:45:00 +0000

After a chaotic 2008, most financial markets regained some degree of normalcy in 2009, as unprecedented volatilities subsided and a gradual calming of anxieties led to the return of rational trading. But for exchange-traded commodity products 2009 was a rather tumultuous period, as expectations for increasingly stringent regulations swirled and correlations began to break down. The ETF industry has grown by leaps and bounds in recent years, but the learning curve is still a steep one, and investors are continuing to educate themselves on the nuances of some of the more complex funds. One of the fastest growing areas of the industry has also been home to some of the biggest misconceptions: commodity ETPs have taken in billions of dollars, but have confused investors who failed to fully understand the investment objectives of these funds. One of the biggest misconceptions has related to the performance and strategy of exchange-traded commodities. [...]

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The Definitive Gold ETF Guide: Gold Bullion ETFs 101

Andy H — Thu, 29 Oct 2009 16:11:02 +0000

The label “gold bug” may suggest a kooky old man who spends a lot of time in his basement reading conspiracy theory newsletters. The truth, however, is that there are many legitimate reasons to trade in gold and its derivatives. Gold has been proven time and time again to be an excellent “safe haven” investment, a holding that will appreciate in value during times of economic uncertainty. As such, gold may offer some valuable hedging and diversification benefits for a long-term portfolio. For this reason, gold is also an effective “dollar hedge” - it tends to rise as investors become uneasy with the idea of keeping their holdings tied up in the U.S. currency. In recent years, China has begun shifting its reserve holdings away from investments in U.S. Treasuries and towards hard currency (gold and silver). China has also encouraged its citizens to beef up their precious metals holdings, [...]

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ETF Plays For $3,000 Gold

Michael Johnston — Thu, 17 Sep 2009 09:00:44 +0000

The Gold Rush of 2009 likely hasn’t come as a complete surprise to too many investors. After all, gold has been proven time and time again to be a “safe haven” investment that rises during uncertain economic times (such as the last two years), and questions about the dollar’s future as the world’s reserve currency (along with other factors placing downward pressure on the greenback) have led many to reconsider their strategic holdings. But the length and degree of the run-up in gold prices certainly caught a number of investors (myself included) off guard. Brett Arends poses a question I would have laughed at two years ago, but now take quite seriously: is it realistic to think gold could really go to $3,000? Some gold bugs think it’s a distinct possibility. Bud Conrad, the chief economist at Casey Research and a noted gold bug, estimates that gold prices could quadruple [...]

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Why You Need A Swiss Gold ETF

Michael Johnston — Thu, 10 Sep 2009 05:30:41 +0000

ETF Securities, already a household name in the European ETF industry, is quickly becoming a major player in the ETF space here in the U.S. The London-based ETF sponsor announced today the launch of the ETFS Physical Swiss Gold Shares (SGOL), its second U.S.-listed ETF. The new offering is physically-backed by gold bullion held in secure vaults in Switzerland. ETF Securities has established itself as a market leader in the European ETF market, with assets of more than $13 billion in over 130 products. The firm was behind the world’s first gold ETF in 2003 (in Australia and London) and the first crude oil ETF in 2005. Today, the company maintains a comprehensive line of commodity products, including precious and industrial metals, livestock, and agriculture funds. ETF Securities also offers leveraged and inverse leveraged ETFs in European markets. Now the London-based firm is making a successful entry into the U.S. [...]

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Gold ETFs: More Popular Than Ever

Michael Johnston — Thu, 27 Aug 2009 09:26:23 +0000

As equity markets continue to surge and developed economies around the world begin showing signs of stability, many thought that huge inflows into gold ETFs that have occurred over the last year would begin to reverse. Think again. ETF Securities, the London-based ETF giant that recently broke through into the U.S. market, saw the largest ever one day inflow into its physical gold ETC on Wednesday, as fund holdings jumped by about 7%, or more than 200,000 ounces. With current prices hovering just below $950 per ounce, the day’s haul amounts to about $190 million. According to Reuters, the Gold fund’s holdings have jumped by about 18% in the last week. Despite the recent rally on Wall Street, many gold ETFs have held their ground, perhaps propped up by uncertainty on the staying power of the recent mini bull market and worries that many developed economies will experience significant inflation [...]

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Which Gold ETF is Right For You?

Michael Johnston — Tue, 26 May 2009 13:33:03 +0000

It’s no secret that ETFs are rapidly attracting investor dollars away from traditional mutual funds and other investment vehicles. Coupled with the rise of the ETF industry as a whole, an extended period of extreme financial turmoil has made gold ETFs one of the most popular investments in today’s environment. To meet the demand, a number of gold ETFs have popped up. But buyer beware – not all gold funds are the same. Here’s a look at seven of the largest gold ETFs on the market today, along with their objectives and methodologies. iShares COMEX Gold Trust (IAU): This trust seeks to match the day-to-day movement of the price of gold bullion. IAU has more than $2.0 billion in assets, consisting primarily of gold bullion, and an expense ratio of 0.40%. E-TRACS UBS Bloomberg CMCI Gold Total Return ETN (UBG): This exchange-traded note is a subordinated debt instrument designed to track the performance [...]

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ETF Database » UBG

Among Gold ETFs, Bigger Isn’t Always Better

Related Posts:

For ETF Investors, The Details Matter (Part II)

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How Contango Impacts ETFs

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The Definitive Gold ETF Guide: Gold Bullion ETFs 101

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ETF Plays For $3,000 Gold

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Why You Need A Swiss Gold ETF

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Gold ETFs: More Popular Than Ever

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Which Gold ETF is Right For You?

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