Last week’s swoon in the equity markets was accompanied by another strong performance by gold.
The last peak for stocks was on July 7 when the S&P 500 ETF (SPY) closed above $135. Since then, stocks are down over 11%.
Over the same time period, SPDR Gold Shares (GLD) is up over 8%.
With Friday’s downgrade of US debt by S&P, we’re likely to see the peformance gap between stocks and gold continue to widen.
GLD is the largest of the exchange traded funds that provide exposure to gold. As of August 4, 2011, the fund had $69.4 billion of assets.
The Gold Shares represent fractional, undivided interests in the Trust, the primary asset of which is allocated (or secured) gold. The fund’s expense ratio is 0.40%.
Read more on investing in gold with ETFs.
– ETF MarketPro Staff
August 8, 2011