Gold ETFs and Mutual Funds

Gold ETFs and Mutual Funds

One alternative to a direct investment in gold bullion is to invest in one of the gold-based exchange-traded funds (ETFs). Each share of these specialized instruments represents a fixed amount of gold, such as one-tenth of an ounce. These funds may be purchased or sold in any brokerage or IRA account just like stocks. This method is therefore easier and more cost effective than owning bars or coins directly, especially for small investors, as the minimum investment is only the price of a single share of the ETF. The annual expense ratios of these funds are often less than 0.5%, much less than the fees and expenses on many other investments, including most mutual funds.

Many mutual funds own gold bullion and gold companies as part of their normal portfolios, but investors should be aware that only a few mutual funds focus solely on gold investing; most own a number of other commodities. The major advantages of the gold-only oriented mutual funds are:

❋ Low cost and low minimum investment required
❋ Diversification among different companies
❋ Ease of ownership in a brokerage account or an IRA
❋ Require no individual company research

Some funds invest in the indexes of mining companies, others are tied directly to gold prices, while still others are actively managed. Read their prospectuses for more information. Traditional mutual funds tend to be actively managed, while ETFs adhere to a passive index-tracking strategy, and therefore have lower expense ratios. For the average gold investor, however, mutual funds and ETFs are now generally the easiest and safest way to invest in gold.

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Gold Buyers, sellers, agents and brokers are highly welcomed to contact us for more information.

Email: sales@greengoldminingltd.com   OR  diamondsandgoldmetals@gmail.com

Website: www.greengoldminingltd.com

SKYPE: gold.diamonds.metals

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