GLDB Strategy Shares Gold-Hedged Bond ETF
GLDB Fund Description
GLDB tracks an index that provides broad exposure to USD-denominated investment grade corporate bonds while using near term gold futures to potentially hedge inflation risk.
GLDB Factset Analytics Insight
GLDB bets on the thought that gold will serve as a hedge during times of inflation for a bond investment. The fund’s underlying index combines two others. One index tracks the US dollar denominated investment grade corporate bond sector. The second index tracks the performance return of the near month gold futures contracts listed on the Chicago Mercantile Exchange. The portfolio itself contains individual corporate bonds and gold futures contracts with a notional value equivalent to the dollar exposure in corporate bonds. The weight in the portfolio to each asset class aims to provide the exposure of US dollar denominated corporate bonds as if such bonds were denominated in gold. The investment objective is to generate income and maintain consistent purchasing power. The gold exposure is reset monthly and rebalanced on the last business day of each month. It is possible for both corporate bonds and gold to decline in value at the same time.
GLDB Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of GLDB. GLDB is rated a N/A out of 5.
Options Strategies for Outcome Investing
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.