Physical Gold ETF Inflows: GLD Takes Commanding Lead

The physical gold ETF space has been on the rise for several years now, as investors and issuers alike have been hopping in on the surging precious metal. There are currently four funds that offer exposure to physical gold: SPDR Gold Trust (NYSEARCA:GLD), iShares Gold Trust (NYSEARCA:IAU), S Gold Trust(NYSEARCA:SGOL), and the Asian Gold Trust (NYSEARCA:AGOL). The latter two products store their gold overseas while SPDR Gold Trust (NYSEARCA:GLD) and IAU store the majority of their bullion in U.S. vaults [for more gold ETF news and analysis subscribe to our free newsletter].

SPDR Gold Trust (ETF) (NYSEARCA:GLD)

These four funds each have their own unique features that set them apart. SPDR Gold Trust (NYSEARCA:GLD) is by far the most popularand most trade-able gold fund out there as it was the first of its kind. IAU wins on a cost basis, as it charges 15 basis points less than GLD and 14 less than SGOL and AGOL. And obviously, the latter two offerunique gold storage options in Switzerland and Singapore respectively.

Physical Gold ETF Inflows: GLD Takes Commanding LeadThe Battle For Inflows

2010 was a hands-down victory for GLD, as it took in nearly $6 billion in total assets. IAU and SGOL held their own quite nicely and AGOL had yet to make its debut. The following year shook things up, as gold surged to its historical high and endured a fair amount of volatility, investors showed an overwhelming amount of confidence in the cheapest gold fund, IAU. Both SGOL and AGOL were able to continue their trend, but GLD actually lost assets, as big name investors likely grew wary about choppy markets for this commodity [see also Get Ready For the Gold Bull Run].

That brings us to 2012, where GLD has taken back its dominant lead. And it should come as no surprise, especially given the fact that billionaires like George Soros and John Paulson placed significant bets on the fund. IAU is shaping for a strong year, as it looks to chip away at its much larger competitor. But there is another trend that investors should note among SGOL and AGOL.

AGOL’s flows have been very low on the year, as were unable to find a conclusive and consistent figure, but it falls well below its counterparts. The flows of these products as a whole have come to a standstill compared to when they first debuted, suggesting the novelty of overseas gold storage may have worn off. Though many like the idea of storing gold overseas to avoid any sort of confiscation from our government, many have questioned how safe these two ETFs can really be if they are listed on U.S. exchanges.

The Bottom Line

Plain and simple, there will be no stopping GLD anytime soon. Barring a major scandal that the fund actually holds no gold, it seems that this fund is poised to maintain its position as the second largest ETF in the world, and may perhaps make a run at SPDR S&P 500 (NYSEARCA:SPY) in the coming months. IAU seems content with its low-cost niche and appears to be generating a fair amount of consistency which is ideal for long term investors. The final two funds are certainly ones to keep an eye on as they appear to be losing steam as the months and years go on.

This article was originally written by Jared Cummans, and posted on CommodityHQ.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!