Vanguard Gold ETF: Good Inflation Hedge in 2024?

Written By Colin Kuehn  |  Gold 

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The Vanguard Gold ETF would be similar to GLD and IAU, and would have similar fees. Its top five holdings make up more than 46% of its assets. In addition, the market cap of the fund is around $47 billion. The fee competition for these funds is razor-thin, so a Vanguard ETF would have razor-thin fees as well.

Vanguard Precious Metals and Mining Fund

The Vanguard Precious Metals and Mining fund is an excellent investment for long-term investors. It holds foreign securities in the precious metals and mining sector and is based on modern portfolio theory. This fund is best held as a satellite holding within a diversified portfolio.

The fund is managed by Keith White. Since it debuted in 1984, it has gained a cumulative total return of 6.84% over the past six years. The Vanguard Group is based in Malvern, PA, and has a history of investing in various asset classes.

Vanguard's investment strategy is based on the cyclical patterns of the stock market. It seeks out companies with low prices but with potential for growth when demand picks up. The Vanguard Precious Metals and Mining Fund does not require investors to hold a minimum percentage of their portfolio in precious metals. The fund has a very low correlation to stocks, with a correlation of 0.02 over the past three years.

There are many reasons to own gold and other precious metals. They are a safe bet against rising interest rates and geopolitical risk. The Vanguard Precious Metals and Mining Fund invests around one-quarter of its portfolio in mining companies. If you aren't comfortable with this approach, you can always consider a sector-based fund such as VGPMX.

This fund is a long-term investment option for investors who are concerned about the short-term volatility of these markets. Investors should keep in mind that the market is still undergoing some changes. This is why it's essential to take a long-term view when investing.

$47 Billion Market Cap

The Vanguard Gold ETF is one of the largest gold ETFs available on the market, with a market cap of $47 billion. Shares are issued by registered investment companies and are subject to certain restrictions under the Investment Company Act of 1940. However, a SEC exemption order allows registered investment companies to invest in the issuing fund without exceeding the limits set forth in that statute.

The Vanguard Gold ETF's market cap represents the total value of the shares in the fund. The largest company in the Vanguard Gold ETF is Newmont, with a market cap of $47 billion, while the smallest company has a market cap of $15.5 billion. Because of this, it is a better bet for investors who prefer quality over quantity.

Vanguard brokers can help you convert your conventional shares into ETF Shares. The conversion process can take days or weeks, depending on your broker. The process is 100% tax-free and there is no conversion fee. Once your conversion is complete, your ETF shares will reflect your broker's ownership.

If you're a beginner in the world of ETFs, you can start with a low-cost index fund. Vanguard MSCI International ETF, for example, offers broad-cap diversification and low fees. Its portfolio includes more than 1,500 stocks, which makes it a good barometer of the developed world. However, there is a risk of country concentration, as 71% of the index is made up of US companies. Nonetheless, this is typical of most global indexes. Many of these large US stocks are multinationals and earn substantial revenue from the international markets.

RELATED: Fidelity Gold IRA

A gold ETF with a low expense ratio is a good option for the long-term. But it isn't the only way to invest in gold via the stock market. Another option is to invest in gold mining companies. These companies have the benefit of a lower expense ratio, which means higher returns for investors.

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The Vanguard Gold ETF is a high-quality gold fund. Unlike a typical mutual fund, it does not offer individual shares. Instead, it invests in a portfolio of high-quality companies. This means you get the benefits of diversification, lower risk, and experienced fund managers.

Vanguard's low fees have helped the fund grow at an impressive rate. Last year, it grew three times faster than the market. In fact, the two largest providers of ETFs both lost market share in 2014. Moreover, Vanguard has increased sales to advisers, enabling it to grow at a faster pace.

Summary: Upside Potential?

The upside potential of Vanguard Gold ETF has been increasing for the past several years. The precious metal has seen a steady climb since 2001, when it fell to $271 per ounce. The change in the name coincided with the beginning of a decade-long bull market in gold. Since then, it has climbed higher to $1544 per ounce as of August 29.

Gold is a great hedge against inflation and a safe haven in times of war and uncertainty. A gold ETF is a good way to leverage that safety. Rather than buying physical gold, you can invest in companies that manufacture and process the precious metal. However, you should understand that the value of gold ETFs is not the same as the value of gold.

A Vanguard Gold ETF holds shares in a variety of companies. It has a low expense ratio and low bid-ask spread. Because of this, it's an excellent option for investors with a long time horizon. However, investors with a shorter time frame may be better served by another ETF.

As for the gold miners, the mid-sized gold miners have performed very well over the last year. However, it is important to keep in mind that past performance is no guarantee of future results. As with any stock, the upside potential of a Vanguard Gold ETF depends on a variety of factors.

Last Updated: December 31, 2023