This year, investors have been rewarded by equities and gold. As of October 8, the S&P 500 was higher by nearly 16% YTD. The largest ETF backed by physical holdings of gold was up a staggering 53.8% in the same time frame. Clearly, it’s been a good time to own gold and stocks. But many advisors and investors may think they have to simultaneously own two assets to check both those boxes. The WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE ) says otherwise. Under one umbrella, GDE provides exposure to bullion futures and large-cap domestic stocks.
In other words, GDE is convenient. But convenience doesn’t imply returns are being sacrificed. With a YTD gain of about 63%, GDE confirms as much. Indeed, it’s a best-of-both-worlds approach. It’s also one that could have more upside ahead of it. That’s because consensus wisdom indicates, despite gold’s intense 2025 rally, the yellow metal could continue trending higher.
Debasement Trade Bodes Well for GDE
As noted above, GDE provides exposure to both equities and gold. That means prospective investors need to assess both assets. Regarding the ETF’s gold futures component, that sleeve of the fund could continue shining . That’s because the debasement trade is alive and well. And it’s compelling asset allocators to embrace gold ETFs.
“We can add in the debasement trade, which really started to gain steam with the government shutdown, that we saw the ETF have 110 tons of inflows recently around the debasement,” said Jeff Currie, chief strategy officer of energy pathways at Carlyle, in a recent CNBC interview.
GDE’s gold exposure is also a source of allure at a time when interest rates could further decline and with the White House pushing tariffs and deficit-increasing tax reductions. The yellow metal has another catalyst investors should consider. That catalyst is ongoing, devoted buying by global central banks. As just one example, it’s estimated Brazil’s central bank purchased 16 tons of gold in September alone.
“Central banks have also fueled gold’s climb, buying bullion at record levels since sanctions on Russia in 2022, helping the metal surpass the euro as the world’s second-largest reserve asset,” according to Seeking Alpha.
Running at Double the Pace
Central banks’ bullion buying binge is noteworthy for gold and GDE investors. That’s because those market participants have the ability to affect prices. Data indicates they’re not being scared off by the commodity’s seemingly unabated ascent. In fact, Deutsche Bank recently noted central bank demand for gold is currently running at double the pace seen from 2011 through 2021.
This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.
WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.
For more news, information, and analysis, visit the Modern Alpha Content Hub.
