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(but still make lots of money)?

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Best ETFs 2021: 3 Australian gold ETFs

Here is a list of the top 3 gold ETFs in Australia.

#1 – ETF Securities GOLD ETF (ASX: GOLD)

GOLD offers a simple and cost-effective option for investors to access physical gold and movements in the gold spot price. It is the largest and most liquid gold ETF on the Australian market with $2.18 billion funds under management.

The ETF is denominated in US Dollars, meaning investors are subject to movements in both the spot gold price and AUD relative to the USD. As a result, investors will benefit from a rising AUD. Conversely, a falling AUD will reduce performance.

The gold owned by the GOLD ETF is backed by physical bullion held in the vaults of JPMorgan in London, with each bar segregated, individually identified, and allocated. Physical holdings can be redeemed, meaning investors are entitled to delivery of the gold bullion upon redemption of their units. The GOLD fund has returned 10% year-to-date, with a five-year return of 9.85% per annum. The 0.40% management fee accounts for storage costs, transportation, and administration.

View our GOLD ETF review.

#2 – Betashares Gold Bullion ETF – Currency Hedged (ASX: QAU)

QAU offers investors exposure to the gold price backed by gold bullion bars held by JP Morgan. However, there are two major differences between QAU and GOLD.

One difference is QAU is currency hedged against movements in the AUD/USD exchange rate. This means fluctuations in either currency will not affect the overall return of the ETF, thus eliminating currency risk. As a result of the currency hedging, the second difference is management fees. QAU management fee is 0.59%, compared to 0.40% for GOLD, perhaps to account for the cost of hedging.

At the end of the day, the decision between QAU and GOLD rests on your perspective of exchange rate movements. If you want a pure-play on the gold spot price, QAU will remove the currency risk, albeit with a marginal increase in management fees. Conversely, if you have on view on currency movements, or apathetic to foreign exchange, GOLD is more appropriate.

View our QAU ETF review.

#3 – VanEck Vectors Gold Miners ETF (ASX: GDX)

The GDX ETF offers an alternative method of gaining exposure to gold by investing in the shares of a global basket of gold mining companies. The fund follows the NYSE Arca Gold Miners Index with approximately 50 holdings. Fund holdings are primarily located in Canada (54.1%), United States (16.9%), and Australia (14.7%). The fund has returned 18.10% one-year, 20.59% over five-years, and -1.67% over ten years.

The benefit of exposure to a miner, rather than the commodity, is miners have the ability to pay dividends to shareholders in addition to investors benefitting from capital growth in the gold price.

Similar to GOLD, GDX is unhedged, and therefore movements in foreign currencies will impact performance. With a management fee of 0.53%, investors who are looking for an income stream are well suited to GDX.

View our GDX ETF review.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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At the time of publishing, Lachlan does not own shares in the aforementioned ETFs.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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