Megaphone icon ETF Database is now VettaFi. Read More >
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. Beyond Basic Beta Channel
  2. OUNZ Clear Choice for Getting in on Gold
Beyond Basic Beta Channel
Share

OUNZ Clear Choice for Getting in on Gold

Tom LydonFeb 23, 2022
2022-02-23

Gold was an obvious disappointment last year in the broader commodities complex, but the yellow metal is getting its act together, providing support for a variety of exchange traded funds, including the VanEck Merk Gold Trust (OUNZ ).

OUNZ “seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange traded product with the option to take physical delivery of gold,” according to VanEck.

What makes the $618.3 million OUNZ unique is that investors can take physical delivery of bullion upon redeeming shares of the fund. Whether it’s shares of OUNZ or physical gold attained through a sale of the ETF’s shares, the VanEck is a potentially alluring idea as bullion bounces back.

“Gold had been relatively boring for quite a while. After surging in 2020, its price has essentially traded sideways for the past 18 months, falling just 5.6% from $2,013.10 to $1,900.80 an ounce. Now it’s on the move,” reports Ben Levisohn for Barron’s. “That makes complete sense. Gold is often thought of as protection against inflation, but it’s really protection against chaos—and the situation in Ukraine certainly counts as chaos. That has helped push the price of gold up 5.8% in February, putting it on pace for its best month since May 2021.”

While there may be a diplomatic resolution to the Russia/Ukraine standoff, that’s unlikely to dent the cases for gold and OUNZ because inflation remains stubbornly high in the U.S. Plus, the yellow metal still has ample room to return to its prior highs.

“The precious metal, despite the move, is still trading below its spring 2021 high of $1,909.90 and could be ready to break out. At the same time, there are also few technical signs that the gold rush is getting exhausted,” according to Barron’s.

Additionally, there’s still a strong demand case for gold, which could support upside for OUNZ as 2022 unfolds. Importantly, this demand goes well beyond jewelry and retail investment demand.

“Central banks in emerging markets have been buying gold as a way to diversify away from the dollar, notes BofA Securities commodity strategist Michael Widmer. El Salvador’s failed dalliance with Bitcoin is likely to encourage that trend,” notes Barron’s.

OUNZ gained nearly 2% last week.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.

Loading Articles...
Help & Info
  • Contact 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