SPDR Gold Shares vs Sprott Gold Miners ETF. Should Investors Go For Bullion or Mining Stocks to Play the Comnmodity Boom?
Mining stocks delivered 41% returns over one year, but with 45% maximum drawdown. Physical gold offers stability with lower volatility.
Overview
Deciding between SPDR Gold Shares (NYSEMKT:GLD) and Sprott Gold Miners ETF (NYSEMKT:SGDM) depends on whether an investor seeks direct exposure to physical gold prices or the potential leverage of gold-mining stocks.
Both funds offer distinct paths for those looking to hedge against inflation or diversify their portfolios with gold. While they focus on the same precious metal, their risk profiles differ significantly because mining companies face operational costs and management risks that physical bullion bars do not.
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 based on the closing July 10 price.
Source
Originally published at www.fool.com.