The Most Interesting New Gold ETF Since GLD

February 16, 2017

Returns For GLD, GEUR, GYEN, Solactive GLD Long Dollar Gold Index Since February 2014

 

Risks To Consider

GLDW is a solid offering that's poised to outperform vanilla gold ETFs like GLD and IAU should the dollar continue to rally. Of course, the flip side rings true as well; if the dollar declines, that would cause GLDW to underperform.

Investors should also be mindful that in the future, the cost of carry may become a consideration. Currently, foreign currencies in the Dollar Index basket are yielding less than the U.S. dollar, resulting in a slightly positive yield. If the situation reverses, the negative carry will become a drag on the returns for the fund.

At the time of writing, the author did not own any of the securities mentioned. Contact Sumit Roy at [email protected].

 

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