Gold Has Doubled in Less Than Two Years. Which ETF is Better to Play the Historic Rally, GLD or SGDM?
SGDM outperformed over the past year but carries deeper drawdowns. GLD offers lower volatility and greater liquidity with $129.2 billion in assets.
Overview
Investors choosing between SPDR Gold Shares (NYSEMKT:GLD) and Sprott Gold Miners ETF (NYSEMKT:SGDM) are deciding between direct exposure to physical gold prices and equity exposure to the companies extracting the metal.
Both funds provide a path to include gold in a portfolio, yet their underlying mechanics differ significantly. While GLD tracks the spot price of bullion, SGDM invests in mining stocks. This distinction leads to varying levels of volatility, liquidity, and sensitivity to broader stock market movements.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 20.
Source
Originally published at www.fool.com.