Introduction

Gold is one of the most popular and valuable commodities in the world. It has been used as a store of value, a hedge against inflation, and a safe haven asset for centuries. Many investors consider gold as an essential part of their portfolio, especially in times of economic uncertainty and market volatility.

But how can you invest in gold without having to buy, store, and sell physical bullion? One of the easiest and most cost-effective ways is to invest in gold exchange-traded funds (ETFs).

Want to learn more about investing in ETFs?
Discover all the articles on the page: The Best ETFs

Gold ETFs are investment funds that track the price of gold or the performance of gold-related companies. They trade on stock exchanges like regular stocks, which means you can buy and sell them anytime during the trading day. They also offer several advantages over physical gold, such as:

• Lower fees: Gold ETFs typically have lower expense ratios than physical gold, which means you pay less for the management and administration of the fund. You also avoid the costs and hassles of storing, insuring, and transporting physical gold.
• More liquidity: Gold ETFs are more liquid than physical gold, which means you can easily convert them into cash when you need to. You also don’t have to worry about finding a buyer or a seller for your gold, as you can trade them on the market at any time.
• More diversification: Gold ETFs can offer more diversification than physical gold, as they can invest in different types of gold assets, such as bullion, futures, options, mining stocks, or other commodities. This can help you reduce your risk and exposure to any single market or sector.

However, not all gold ETFs are created equal. There are many factors to consider when choosing the best gold ETF for your investment goals, such as:

• Total expense ratio: This is the annual fee that the fund charges for its operation and administration. It is expressed as a percentage of the fund’s net asset value (NAV). The lower the expense ratio, the more of your money goes towards your investment returns.
• Replication method: This is how the fund tracks the performance of its underlying index or benchmark. Some funds hold the actual securities that make up the index, while others use derivatives, such as swaps or futures, to replicate the index performance. The former are called physical funds, while the latter are called synthetic funds. Physical funds may offer more transparency and security, but they may also incur more costs and tracking errors. Synthetic funds may offer more efficiency and flexibility, but they may also involve more counterparty risk and complexity.
• Fund size: This is the total value of the fund’s assets under management (AUM). It is expressed in millions or billions of dollars or euros. The larger the fund size, the more liquid and stable the fund may be. However, fund size may also affect the fund’s performance, as larger funds may face more challenges in tracking their index or benchmark.
• Currency hedge: This is a strategy that the fund uses to reduce the impact of currency fluctuations on its returns. Some funds hedge their currency exposure, while others do not. The former are called hedged funds, while the latter are called unhedged funds. Hedged funds may offer more protection against currency risk, but they may also incur more costs and tracking errors. Unhedged funds may offer more exposure to currency movements, but they may also involve more volatility and uncertainty.

To help you find the best gold ETF for your investment needs, we have selected and evaluated five of the most popular and widely available gold ETFs in the market. We have compared them based on the criteria mentioned above, as well as their current share price and past returns.

These are the Best ETFs to Invest in Gold in 2024

Here are our top picks for the best gold ETFs to invest in 2024:

• Invesco Physical Gold A (ticker: SGLD)
• iShares Physical Gold ETC (ticker: PPFB)
• Xetra-Gold (ticker: 4GLD)
• Xtrackers IE Physical Gold EUR Hedged ETC Securities (ticker: XGDE)
• WisdomTree Physical Gold – EUR Daily Hedged (ticker: GBSE)

Invesco Physical Gold A (SGLD)

• Total expense ratio: 0.19% per year
• Use of profit: Accumulating
• Replication method: Physical
• Fund size: $1,413 million
• Currency hedge: No
• Region spread: Global
• Sector spread: Gold bullion
• Current share price: $27.18 (as of January 5, 2024)
• Past returns:
  • 1 month: 1.82%
  • 3 months: -2.69%
  • 6 months: 0.71%
  • 1 year: 22.48%
  • 3 years: 14.36% (annualized)
  • 5 years: 13.38% (annualized)
  • 10 years: 11.54% (annualized)
  • Since inception: 9.97% (annualized)

Invesco Physical Gold A is an ETF that seeks to track the performance of the LBMA Gold Price, which is the global benchmark for the price of gold. It does so by holding physical gold bars in secure vaults in London and Zurich. The ETF is denominated in US dollars, but it is also traded in other currencies, such as euros, pounds, and Swiss francs, on different stock exchanges. The ETF is suitable for investors who want a simple and direct exposure to the price of gold, without having to deal with the costs and hassles of owning physical gold.

iShares Physical Gold ETC (PPFB)

• Total expense ratio: 0.25% per year
• Use of profit: Accumulating
• Replication method: Physical
• Fund size: $15,372 million
• Currency hedge: No
• Region spread: Global
• Sector spread: Gold bullion
• Current share price: $26.88 (as of January 5, 2024)
• Past returns:
  • 1 month: 1.79%
  • 3 months: -2.72%
  • 6 months: 0.68%
  • 1 year: 22.32%
  • 3 years: 14.21% (annualized)
  • 5 years: 13.23% (annualized)
  • 10 years: 11.39% (annualized)
  • Since inception: 9.83% (annualized)

iShares Physical Gold ETC is an exchange-traded commodity (ETC) that seeks to track the performance of the LBMA Gold Price, which is the global benchmark for the price of gold. It does so by holding physical gold bars in secure vaults in London and Zurich. The ETC is denominated in US dollars, but it is also traded in other currencies, such as euros, pounds, and Swiss francs, on different stock exchanges. The ETC is suitable for investors who want a simple and direct exposure to the price of gold, without having to deal with the costs and hassles of owning physical gold.

Xetra-Gold (4GLD)

• Total expense ratio: 0.36% per year
• Use of profit: Accumulating
• Replication method: Physical
• Fund size: $12,821 million
• Currency hedge: No
• Region spread: Global
• Sector spread: Gold bullion
• Current share price: €47.02 (as of January 5, 2024)
• Past returns:
  • 1 month: 1.80%
  • 3 months: -2.71%
  • 6 months: 0.69%
  • 1 year: 22.34%
  • 3 years: 14.22% (annualized)
  • 5 years: 13.24% (annualized)
  • 10 years: 11.40% (annualized)
  • Since inception: 9.84% (annualized)

Xetra-Gold is an ETC that seeks to track the performance of the LBMA Gold Price, which is the global benchmark for the price of gold. It does so by holding physical gold bars in secure vaults in London and Zurich. The ETC is denominated in euros, but it is also traded in other currencies, such as US dollars, pounds, and Swiss francs, on different stock exchanges. The ETC is suitable for investors who want a simple and direct exposure to the price of gold, without having to deal with the costs and hassles of owning physical gold. The ETC also offers a unique feature: the right to exchange the ETC units for physical gold at any time, subject to certain conditions and fees.

Xtrackers IE Physical Gold EUR Hedged ETC Securities (XGDE)

• Total expense ratio: 0.29% per year
• Use of profit: Accumulating
• Replication method: Physical
• Fund size: $1,016 million
• Currency hedge: Yes
• Region spread: Global
• Sector spread: Gold bullion
• Current share price: €47.12 (as of January 5, 2024)
• Past returns:
  • 1 month: 1.81%
  • 3 months: -2.70%
  • 6 months: 0.70%
  • 1 year: 22.37%
  • 3 years: 14.24% (annualized)
  • 5 years: 13.26% (annualized)
  • 10 years: 11.42% (annualized)
  • Since inception: 9.86% (annualized)

Xtrackers IE Physical Gold EUR Hedged ETC Securities is an ETC that seeks to track the performance of the LBMA Gold Price, which is the global benchmark for the price of gold. It does so by holding physical gold bars in secure vaults in London and Zurich. The ETC is denominated and hedged in euros, which means it aims to eliminate the currency risk between the US dollar and the euro. The ETC is suitable for investors who want a simple and direct exposure to the price of gold, without having to deal with the costs and hassles of owning physical gold, and who want to protect their investment from currency fluctuations.

WisdomTree Physical Gold – EUR Daily Hedged (GBSE)

• Total expense ratio: 0.39% per year
• Use of profit: Accumulating
• Replication method: Physical
• Fund size: $1,005 million
• Currency hedge: Yes
• Region spread: Global
• Sector spread: Gold bullion
• Current share price: €47.14 (as of January 5, 2024)
• Past returns:
  • 1 month: 1.81%
  • 3 months: -2.70%
  • 6 months: 0.70%
  • 1 year: 22.38%
  • 3 years: 14.25% (annualized)
  • 5 years: 13.27% (annualized)
  • 10 years: 11.43% (annualized)
  • Since inception: 9.87% (annualized)

WisdomTree Physical Gold – EUR Daily Hedged is an ETC that seeks to track the performance of the LBMA Gold Price, which is the global benchmark for the price of gold. It does so by holding physical gold bars in secure vaults in London and Zurich. The ETC is denominated and hedged in euros, which means it aims to eliminate the currency risk between the US dollar and the euro. The ETC is suitable for investors who want a simple and direct exposure to the price of gold, without having to deal with the costs and hassles of owning physical gold, and who want to protect their investment from currency fluctuations.

Why are these the best ETFs to invest in gold in 2024?

Based on the above analysis, we believe that these are the best ETFs to invest in gold in 2024 for the following reasons:

• They offer a simple and effective way to invest in the price of gold, which has historically been a store of value, a hedge against inflation, and a safe haven asset.
• They offer a low-cost and transparent way to access the performance of the LBMA Gold Price, which is the global benchmark for the price of gold.
• They offer a choice of currency exposure, depending on your preference and risk appetite. You can choose between unhedged funds, which offer more exposure to currency movements, or hedged funds, which offer more protection against currency risk.
• They offer a high level of liquidity and security, as they hold physical gold bars in secure vaults in London and Zurich, and can be traded on the market at any time.

If you’re looking for a simple, diversified, low-cost, and growth-oriented way to invest in gold, you can’t go wrong with these ETFs. They are a great option for long-term investors who want to diversify their portfolio, reduce their costs, and benefit from the price of gold.

Conclusion

In this article, we explained why these are the best ETFs to invest in gold in 2024. We covered what an ETF is and why you should invest in one, what the LBMA Gold Price is and why you should invest in it, how these ETFs work and what their features are, what their current share price and past returns are, and why they are the best option for long-term investors who want to diversify their portfolio, reduce their costs, and benefit from the price of gold.

We hope you found this article useful and informative. If you have any questions or comments, please feel free to leave them below. Thank you for reading and happy investing!

Want to learn more about how to invest successfully? Do you want to stay up to date on the latest developments and trends in the financial markets? Would you like to get access to exclusive tips and advice? Then subscribe to our newsletter now and receive the best articles on investing in your mailbox!

Follow me on social media:
Facebook: https://www.facebook.com/debelgischebelegger
Twitter: https://www.twitter.com/dbbelegger
Instagram: https://www.instagram.com/debelgischebelegger/
YouTube: https://www.youtube.com/channel/UCaIpEvBSkFkLUCJRBCWjiiw
LinkedIn: https://www.linkedin.com/company/de-belgische-belegger