ETFdb Logo
ETFdb Logo
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Innovative ETFs Channel
  2. Gold Could Bounce, Buy the Dip with This ETF
Innovative ETFs Channel
Share

Gold Could Bounce, Buy the Dip with This ETF

Ben HernandezSep 20, 2021
2021-09-20

Gold prices fell $40 last week, but the recent tick lower could present an opportune buy-the-dip entry for investors in ETFs like the Invesco DB Gold (DGL B+).

While gold has been trying to stage a comeback as of late, it seems to have been stuck in a perpetual holding pattern the last few months. The $1,800 price ceiling seems to be the primary roadblock for gold prices to break, but some market experts think that it’s a temporary speed bump.

“I think the drivers for gold strength not only remain but actually have been strengthened,” said Diego Parrilla, manager of the Quadriga Igneo fund.

According to a Yahoo! Finance article, Parilla thinks that the general populace isn’t taking into account the risks of reflation when it comes to gold prices. The pump in the stock market caused by an injection of capital via governmental stimulus measures could be helping with overinflated valuations.

A market downturn could make gold an idea hedging opportunity, especially if runaway inflation were to occur. Consumer prices have already started ticking higher despite the Federal Reserve resisting the urge to pull the trigger on higher interest rates in a relatively low-rate environment.

“Central bank money printing isn’t really solving problems, it’s delaying the problem,” Parrilla says. “Gold will benefit purely from being a physical asset that you cannot print.”

Gold Price in USD

A Long-Term Hold Opportunity

Rather than look at DGL as a short-term play on gold prices, prospective investors should look at its three-year track record. The fund is up over 30% for the last few years, making it an ideal long-term hold to complement a portfolio with run-of-the-mill assets in stocks and bonds.

DGL seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Gold Index Excess Return™ (DBIQ Opt Yield Gold Index ER or Index) plus the interest income from the fund’s holdings of primarily U.S. Treasury securities and money market income less the fund’s expenses. DGL is designed for investors who want a cost-effective and convenient way to invest in commodity futures.

The Index is a rules-based index composed of futures contracts on gold. The fund and the Index are re-balanced and reconstituted annually in November.


Content continues below advertisement

Invesco DB Gold Price

For more news and information, visit the Innovative ETFs Channel.

Loading Articles...
Help & Info
  • Contact Us
  • About Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X