SPDR Gold Trust is an exchange-traded fund (ETF) that invests in physical gold bullion, providing investors with an opportunity to invest in gold without the need to buy, store, and insure physical gold. The fund is managed by State Street Global Advisors, the investment management arm of State Street Corporation, and was created in 2004.
The fund's objective is to track the price of gold and the performance of the London Gold Fixing Price for its investors. The fund invests primarily in gold bars held in the London vaults of HSBC Bank USA, N.A. The gold is held in the form of allocated gold bars and is insured against theft, damage, and loss. The fund's expense ratio is relatively low compared to other gold ETFs, making it an attractive option for investors seeking exposure to gold.
The SPDR Gold Trust has been highly successful since its inception. It has attracted billions of dollars in assets under management (AUM) from investors seeking exposure to gold, particularly during times of market volatility and economic uncertainty. As of April 2021, the fund had over $56 billion in AUM and is one of the largest ETFs in the world.
The SPDR Gold Trust is listed on the New York Stock Exchange and is traded under the ticker symbol "GLD." It is one of the most actively traded ETFs in the world, with millions of shares changing hands daily. The fund's popularity has led to the development of a variety of other gold-based financial products, such as gold futures contracts and options, that are now widely available to investors.
One of the key benefits of investing in the SPDR Gold Trust is the ability to gain exposure to gold without actually owning physical gold. Investors can buy and sell shares of the fund through a broker, just like any other publicly traded security, and can do so without the added costs and complexities of owning physical gold. Additionally, the fund provides investors with a high degree of liquidity, enabling them to enter and exit the market quickly and easily.