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Top 4 ASX Gold ETFs
Here's a look at the top gold ETFs on the ASX by assets under management, from funds that track physical bullion to entities focused on gold stocks.
In March 2022, with geopolitical tensions raised after Putin’s invasion of Ukraine, gold prices spiked to a record high. Since then, the price of the yellow metal has fallen slightly from its record of US$2,074.60 per ounce and now sits just below the US$2,000 mark.
For many investors, gold is often used to diversify an investment portfolio. Due to its intrinsic value, gold — unlike other materials in other sectors — is not as heavily affected by politics, inflation and other negative macroeconomic trends. The price of gold is relatively stable and hence operates as a fairly protected investment for portfolios.
Experts have stated that gold has historically done well in periods of high inflation and economic uncertainty, so there is still hope for the prices to rise.
There are two types of gold ETFs available on the ASX:
- ETFs that track the price of physical gold itself
- ETFs that cover a larger portfolio of companies in the mining and production of gold.
Below, the Investing News Network has listed some of the top gold ETFs on the ASX, sorted by assets under management this year. Data for the top ASX gold ETFs were retrieved from each company’s website on October 18, 2023.
1. Global X Physical Gold
Total Assets Under Management: AU$2.75 billion; current share price: AU$28.11
Previously known as ETFS Physical Gold, Global X Physical Gold (ASX:GOLD) promises a "low-cost and secure way to access physical gold via the stock exchange" while avoiding the struggle of storage. This ETF is backed by gold held in a vault at JP Morgan Chase in London. Investors can redeem physical gold, not just the cash equivalent; however, this comes with a fee of AU$1,000 per redemption. The website suggests that for smaller orders, a more cost-effective option is selling units on the secondary market.
This ETF has a management fee of 0.4 percent per annum.
2. Perth Mint Gold
Total Assets Under Management: $693 million; current share price: AU$30.32
Owned by the Government of Western Australia, Perth Mint Gold (ASX:PMGOLD) tracks the international price of gold in Australian dollars. Investments are backed by gold bullion stored in the Perth Mint. Perth Mint is the only gold product on the ASX that maintains a government guarantee for holdings.
The company website states that Perth operates under the 1987 Gold Corporation Act, which states in Section 22 that investors have a legal right to be paid what they own in its cash equivalent. Purchase of silver bullion, coins or other precious metals is also covered by the guarantee.
This ETF has a management fee of just 0.15 percent, making it the lowest cost gold ETF on the ASX.
3. BetaShares Gold Bullion
Total Assets Under Management: AU$485.57 million; current share price: AU$16.42
BetaShares Gold Bullion (ASX:QAU) is an ETF that tracks the price of physical gold. It is backed by gold bullion stored in the JP Morgan Chase vault in London. Despite the ETF being based on physical gold, you do not own physical gold by owning the ETF. Rather, when you sell your ETF, you receive the cash equivalent of the gold. BetaShares also has the second type of ETF available.
This ETF has a management fee of 0.59 percent.
4. Van Eck Vectors Gold Miners ETF
Total Assets Under Management: AU$40.18 million; current share price: AU$46.79
Van Eck Gold Bullion (ASX:NUGG) allows investors to enjoy the reliability of the gold market without the need to purchase physical gold. It is backed by physical gold bullions bars sourced from Australian gold producers.
This ETF has a management fee of 0.25 percent per annum.
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Securities Disclosure: I, Matthew Flood, hold no direct investment interest in any company mentioned in this article.
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