MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, October 23, 2012 Reuters Rates the Gold ETFs Attention gold aficionados: Reuters just gave some press to two gold ETFs -- and columnist John Wasik discovered surprising differences between funds whose basic purpose is to buy and hold bullion. Wasik looks first at the "big gorilla" of gold ETFs, the $74-billion SPDR Trust Gold fund [profile]. He thinks it's a bit expensive — it charges 40 basis points, which goes toward storing its 1.3 metric tons of gold in the HSBC bank vault in London — but it offers liquidity, and so he thinks it's a good choice for those who trade frequently. For the more cost-conscious gold investor, Wasik recommends the $11-billion iShares Gold Trust [profile]. The expense ratio — 25 bps — is lower than the SPDR fund's, and it has delivered a 6.6 percent return so far this year. Wasik's conclusion will bring no joy to State Street management: "In this basic cost analysis, the iShares fund comes out ahead for buy-and-holders." Full story here. Printed from: MFWire.com/story.asp?s=41757 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |