Gold's Returns Are Shining: Is It Better to Invest With a Physical Gold or Mining Stock ETF in 2026?
GDX delivered 44.4% returns over the past year but experienced a 46.5% drawdown, while GLD's lower volatility came with 21.4% gains.
Overview
SPDR Gold Shares (NYSEMKT:GLD) provides direct exposure to physical bullion price movements, while VanEck Gold Miners ETF (NYSEMKT:GDX) offers a play on the equities of gold mining companies.
Investors looking for a haven in gold often face a choice between owning the commodity directly or investing in the companies that extract it. While one fund tracks the price of physical bullion, the other provides exposure to the operational leverage and equity risks of mining businesses. This analysis examines how these two popular vehicles compare in cost, volatility, and performance.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.