Every ETF trader or ETF investor would like to have a gold ETF in his list of commodity exchange traded funds. These precious metals exchange traded funds provide a lot of trading opportunities for ETF traders and active investors.
Select best gold etf for your trading system
This is an important first step in the process of gold funds trading. The current list of gold funds consists several different commodity exchange traded funds that tracks the price of gold. They can differ in how they track the price.
Some of them are linked to the spot price traded in London. Some of them are based on futures traded in the USA. And, finally, some of them are instruments that represent real stock of physical metal stored somewhere in the world. Some exchange traded funds are only financial instruments that tracks spot price of gold and have no real backing by physical metal.
Here is the table with results of ETF screener looking for gold related exchange traded funds.
A trader or investor should decide what is his/her best choice. I personally think that it is better to look for liquidity and popularity of gold exchange traded funds for short-term trading than whether such gold exchange traded fund is backed by physical gold or not.
The results in the table above are sorted by trading volume so the most liquid funds are GLD and IAU as two major exchange traded funds for this precious metal. But as I mentioned you can have different opinions. Fortunately there are already plenty of possible choices available.
Leveraged gold exchange traded funds
The table above shows also several leveraged gold funds. They can be used for short term trading strategies too. But do not try to use them for position trades or active investments lasting weeks or many months.There is a big risk for long term holdings of these leveraged exchange traded funds.
These leveraged exchange traded gold funds are very good vehicle for intra-day traders.