The 7 Best Gold ETFs in 2022 (GLD, IAU, & more) - YouTube

Channel: Optimized Portfolio

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gold is a popular diversifier in
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investment portfolios to reduce
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volatility and risk currency devaluation
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and uncertainty here we'll explore the
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best gold etfs to get exposure to the
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shiny metal so why gold if you've landed
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on this video you probably already know
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why you want to buy gold essentially
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gold is usually uncorrelated to both
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stocks and bonds so it inarguably at
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least provides a short-term
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diversification benefit to lower
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portfolio volatility and risk which can
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be attractive for risk-averse investors
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and or retirees while it's debatable
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whether or not gold is a reliable
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inflation hedge it does seem to be
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positively correlated with a declining
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currency and can thus be used as a store
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of value the metal is also held as a
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safe haven for times of political unrest
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and instability it is referred to as the
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crisis commodity gold is a major
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component in many popular lazy
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portfolios like the all weather
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portfolio the golden butterfly portfolio
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and the permanent portfolio remember
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that gold is an extremely volatile asset
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you only need a dash of it in your asset
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allocation for its intended effect i'd
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personally hold gold at no more than
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about 10 of the portfolio now let's
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explore the best gold etfs with these
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etfs being physically backed by gold
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bullion they reliably track the price of
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gold while eliminating uncertainties
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from futures contracts most of these
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funds here track the same index the spot
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price of gold bullion so it's probably a
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good idea to just aim for the lowest
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expense ratio first and most popular is
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gld the spyder gold trust with over 78
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billion dollars in assets it is also the
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oldest fund founded in 2004 this etf
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seeks to track the spot price of gold
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bullion unfortunately it has one of the
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highest fees on this list at 0.40
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those trading gold over the short term
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will likely want to use this fund as it
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has the highest liquidity second on our
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list is iau the ishares gold trust with
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over 32 billion dollars in assets it
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also tracks the spot price of gold
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bullion this fund was incepted in 2005
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and has an expense ratio of 0.25 percent
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considerably cheaper than gld third on
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our list is geodm the spyder gold mini
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shares trust godm is the little brother
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to their massive gld godm holds one
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tenth of the amount of gold per share as
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god because of this its fee is much
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lower at 0.18 percent this fund has over
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3.5 billion dollars in assets next on
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our list is sgol the aberdeen standard
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physical gold shares etf sgol is an even
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cheaper way to access the same gold
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index with an expense ratio of 0.17
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as such though it's less popular with a
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little over 2 billion in assets sgol
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would be a fine replacement for gld and
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iau to save some on fees next on our
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list is iaum the ishares gold trust
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micro iaum is the newer cheaper little
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brother to iau ishares launched to this
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fund in mid-2021 and it has quickly
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amassed over 1.2 billion dollars in
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assets likely due to the solid track
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record from the provider and the lowest
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fee in this space at 0.15 percent like
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the larger iau iaum also tracks the spot
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price of gold iaum would be my choice
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out of this list next up is ugl the pro
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shares ultra gold those desiring
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leveraged exposure to gold may want to
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use ugl which seeks to provide two times
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the daily returns of gold bullion this
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fund has roughly 300 million dollars in
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assets and an expense ratio of 0.95
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percent last on the list is gdx the van
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eck vectors gold miners etf another way
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to achieve pseudo leverage on gold is
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through gold miners stocks these are
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companies that physically mine gold as
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such this is considered indirect
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exposure to gold and tends to be more
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volatile and unpredictable those seeking
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to invest in gold miners will enjoy gdx
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the fun seeks to track the nyse arca
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gold miners index a market cap weighted
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index of gold miners stocks around the
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world this etf has over 18 billion
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dollars in assets and an expense ratio
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of 0.52
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do you own any of these gold funds let
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me know in the comments thanks for
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watching some of the links below are
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referral links at no additional cost to
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you if you choose to make a purchase or
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sign up for a service after clicking
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through those links i may receive a
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small commission this allows me to
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continue producing high quality content
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on this channel and pays for the
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occasional cup of coffee i have
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first-hand experience with every product
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or service i recommend and i recommend
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them because i genuinely believe they
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are useful