Latest news with #SPDRGoldSharesETF
Yahoo
4 days ago
- Business
- Yahoo
Not Taking Single-Stock ETFs for Granite
Will Rhind has watched the ETF business for more than two decades. He was an original member of the iShares team — back when it was part of Barclays — and he was later CEO of World Gold Trust Services, the sponsor of the now $98 billion SPDR Gold Shares ETF (GLD). He left that company in 2016 to found GraniteShares, which has built out an extensive line of leveraged single-stock ETFs. Rhind, who has roots in the 'Granite City' of Aberdeen, Scotland, joined ETF Upside for a conversation about the burgeoning world of single-stock ETFs. GraniteShares filed last week with the Securities and Exchange Commission for 25 additional leveraged single-stock ETFs. Rhind did not discuss the pending funds, given that they are in the registration period, but he talked about where the firm is headed. READ ALSO: Grayscale Wants in on Quantum Computing ETFs and BlackRock's 'Widow Maker' ETF Is Suddenly in High Demand ETF Upside: How did GraniteShares get its start, and why did you decide to focus on leveraged single-stock ETFs? Will Rhind: When we started GraniteShares, there were only two companies in the US allowed to do leveraged ETFs, and that was a weird regulatory quirk at the time. The leveraged ETF market hadn't had a lot of innovation for a long time, and the SEC updated the rules around ETFs back in 2020 or 2019. That allowed anybody to do leveraged ETFs; there were all sorts of harmonization things that came with it. There was 'white space' on the leveraged side in doing leverage on single stocks, which no one had done before, and so that's what we started to do. We'd actually done it in Europe first, because we couldn't do it here. So we started the first levered single-stock products in Europe, and then bought them here when we were able to. What do you hear from investors about how they're using the products? I assume most people are aware of the risks and are trading daily. The great thing about ETFs is that there are so many different ways to use it. The directional — two times long, two times short —is one obvious application, but you're able to trade in the pre-market —so before the open, after the close — which is a big benefit against things like options. For example, you're able to short or take an inverse view, which is very useful in environments like this year that we've seen so far. And then, there are other strategies around creating tax events you know could be using short, for example, to generate a taxable loss that you can often offset against gains elsewhere in the portfolio. How do you decide what strategies to pursue? How long do you give a particular strategy if it doesn't catch on? What are some examples of what's worked well and what hasn't? With any ETF, it's much more of an art than a science. Predicting exactly what the market wants is seriously difficult. You can look at a few obvious things when it comes to single stocks: You can look at the size of the stock, the amount that it trades. You can look at different sorts of forecasts. You can look at the amount of mentions it gets on social media. You look at all these things, but ultimately, investors have to buy it, and there has to be that sort of unique cocktail of enthusiasm around it, which is just difficult to predict. Nvidia, for example — that's our biggest — NVGL, two times Nvidia. And that one, it's obvious to everybody now, but it perhaps wasn't as obvious at the time when we launched it, because it was before ChatGPT was released. So I think those in the know knew Nvidia was a good company, but it obviously, absolutely caught on fire after the release of ChatGPT, and everybody had their eyes opened to the potential of AI. When a product doesn't work, it's just a profitability calculus. It's binary — it's either profitable or it's not profitable. There's no hard rule in terms of how long we'll keep it. But we'll look beyond profitability, at things like trading volume. What categories are you planning to expand in? We love what we call 'high conviction' products, and leverage is in that category. Crypto is in that category. Options-based income is in that category. Options-based income is probably the one where we think there's a big amount of potential, and we're expanding in that space with our YieldBoost brand. Leveraged single stocks is also one where we want to expand the number of products we offer there, but it's always according to demand of the market. And then outside of that, it's really just based upon your market conditions and what sort of investment or key investment trends are identified at that time. This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Oil, Gold ETFs Rise on Commodity Resurgence
After an impressive relief rally from U.S. equities, opportunistic investors are shifting their attention back to commodity ETFs, particularly those focused on oil and gold. With crude oil prices hovering near four-year lows and precious metals recently pulling back from 2025 highs, value seekers and risk-conscious investors are once again looking to commodities for portfolio protection and potential upside. Historically, commodities such as oil and gold have proven resilient during inflationary periods and economic volatility—traits that are especially appealing in today's environment of sticky inflation, global uncertainty and market turbulence. As the Trump administration's expansive trade war policy continues to stir fears of stagflation, commodity ETFs are regaining relevance as powerful diversification tools. The largest oil ETF, the United States Oil Fund LP (USO), and the largest gold fund, the SPDR Gold Shares ETF (GLD), rose approximately 5% and 4%, respectively, in the first two days of trading this week, while U.S. stocks, as measured by the Vanguard S&P 500 ETF (VOO), were off by about 1%. Oil, Gold ETFs Gain as US Stocks Retreat The S&P 500 recently ended a rare nine-day winning streak—the longest in two decades—triggering a wave of profit-taking. Market gains, largely fueled by optimism over resilient corporate earnings, were dampened by renewed concerns over trade policy escalation and slowing global growth. In response, many investors appear to be trimming their equity exposure and reallocating to commodities as a defensive play. Oil ETFs like USO have attracted buyers after crude prices fell to multi-year lows, with some market participants eyeing a potential rebound if supply risks or geopolitical tensions return. Meanwhile, gold ETFs like GLD and the iShares Gold Trust (IAU) have also seen renewed interest after a recent pullback that gave longer-term investors a chance to reenter the precious metals space at more favorable prices. Oil & Gold ETFs as Portfolio Diversifiers Looking ahead, oil and gold may continue to play a crucial role in diversified portfolios, especially as the U.S. economic outlook remains clouded by trade-related uncertainty and stubborn inflation. The Trump administration's broad and aggressive tariff policy has created ripple effects across global supply chains, contributing to elevated import costs and market volatility. If these conditions persist or worsen, the diversification benefits of commodity exposure could prove increasingly valuable. Gold, long seen as a safe-haven asset, may be particularly useful if inflation remains elevated or if the Federal Reserve pivots toward rate cuts amid softening labor data.
Yahoo
01-05-2025
- Business
- Yahoo
Billionaires Sell Nvidia Stock Before the Market Crash and Buy a Golden ETF Up 166% in 10 Years
Hedge fund billionaires Israel Englander and Paul Tudor Jones sold Nvidia stock and bought positions in the SPDR Gold Shares ETF in the fourth quarter. Some investors have turned bearish on Nvidia due to concerns about AI spending and export restrictions, but the chipmaker is still well positioned for growth. The SPDR Gold Shares ETF has outperformed the S&P 500 year to date as tariffs imposed by President Donald Trump have pushed investors away from risk assets. The hedge fund billionaires listed below sold shares of Nvidia (NASDAQ: NVDA) during the fourth quarter, ahead of the recent stock market crash. They also purchased SPDR Gold Shares (NYSEMKT: GLD), an exchange-traded fund that soared 166% in the last decade. Israel Englander of Millennium Management sold 1.1 million shares of Nvidia, reducing his position by 10%. And he bought 185,700 shares of the SPDR Gold Shares ETF, increasing his position by 280%. Paul Tudor Jones of Tudor Investment sold 501,700 shares of Nvidia, reducing his position by 37%. And he bought 17,300 shares of the SPDR Gold Shares ETF, increasing his position by 13%. Here's what investors should know about Nvidia and the SPDR Gold Shares ETF. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nvidia specializes in accelerated computing, a discipline that uses specialized hardware and software to speed up complex data center workloads like scientific computing and artificial intelligence (AI). It is best known for its graphics processing units (GPUs), also known as AI accelerators, where it holds 84% market share. But the company also provides adjacent hardware and software. Nvidia has recently struggled against two headwinds. First, Chinese start-up DeepSeek trained sophisticated large language models with less computing power than U.S. rivals. The market assumed Nvidia GPU sales would falter as AI infrastructure spending slowed. But that has not happened. Instead, Nvidia expects demand to rise as cost efficiencies let more businesses adopt AI, and reasoning models create a need for even more computing power. Second, the Trump administration recently hit Nvidia with export restrictions on its H20 GPUs in China, which could cost the company as much as $18 billion in revenue this year, according to Bloomberg Intelligence. But Nvidia still dominates the AI accelerator market, which is forecast to increase at 29% annually through 2030, according to Grand View Research. Those headwinds may explain why hedge fund managers Israel Englander and Paul Tudor Jones sold shares of Nvidia in the fourth quarter. However, readers should bear in mind neither billionaire completely exited their position, so they still have exposure to the chipmaker in their portfolios. Importantly, despite headwinds related to competition and export restrictions, Wall Street estimates Nvidia's earnings will increase 46% in fiscal 2026, which ends in January. That makes the current valuation of 36 times earnings look rather cheap. Investors with a time horizon of at least three years can buy a position in this stock now. SPDR Gold Shares tracks the price of gold bullion. The fund is managed by State Street and owns about 946 metric tons of gold, which is worth more than $100 billion at the current spot price. The SPDR Gold Shares ETF lets investors participate in the gold market without the hassle of buying, storing, and insuring physical bullion. "Gold has demonstrated a low and negative correlation to many financial asset indices over time and has a track record of providing a hedge during periods of large market drawdowns, systemic risk, and geopolitical volatility," according to State Street. Indeed, gold tends to outperform the S&P 500 (a benchmark for the U.S. stock market) during bear markets, but it tends to underperform during bull markets. Bear markets: Gold returned an average of 6% during the last four bear markets, while the S&P 500 declined by an average of 36%. Bull markets: Gold returned an average of 61% during the last four bull markets, while the S&P 500 returned an average of 150%. The precious metal has crushed the U.S. stock market in 2025. The SPDR Gold Shares ETF has advanced 28% year to date, while the S&P 500 has declined 6%. Economic uncertainty is the reason for that discrepancy. Many economists have raised their recession probability forecasts as the Trump administration has sown chaos with its trade policies. So, investors have moved away from risk assets like stocks and toward safe-haven assets like gold. If President Trump's tariffs push the S&P 500 into a bear market, gold will likely continue to outperform. But if the administration reaches trade deals with a sufficient number of foreign countries, the current bull market could regain momentum, in which case gold would likely underperform. That makes the SPDR Gold Shares ETF a smart buy for any investor concerned about a more substantial drawdown in the S&P 500. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $281,965!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $39,841!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $598,818!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 28, 2025 Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Billionaires Sell Nvidia Stock Before the Market Crash and Buy a Golden ETF Up 166% in 10 Years was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Better Buy Now: Gold at $3,500 or an S&P 500 Index Fund?
The price of gold is hitting new all-time highs -- surpassing $3,500 per ounce. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) is in a correction. Some investors may be wondering if it is better at the moment to buy the dip in the S&P 500 or ride the gold wave higher. Below I'll discuss why gold is doing so well, different ways to invest in gold -- including through an exchange-traded fund (ETF) -- and if gold is a better buy than an S&P 500 index fund. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Gold is piling on the gains Gold prices are up over 30% year to date at the time of this writing, compared to a 12.3% sell-off in the S&P 500. Its price performance also slightly beat the S&P 500 in 2024. Gold has been so hot that it's up more than the S&P 500 over the last three-year, five-year, and 10-year periods -- although the S&P 500 is beating it over the last five-year and 10-year periods when you account for dividends reinvested. Still, gold's torrid run-up may come as a surprise, especially given the strong gains in the S&P 500 led by megacap growth stocks. It wasn't long ago that investors questioned when the first U.S. company would surpass $1 trillion in market cap. Apple, Microsoft, and Nvidia all closed out 2024 with market caps over $3 trillion. Gold has made most of its gains over the S&P 500 during the last three years (there were two major sell-offs in the S&P 500 -- in 2022 and now in 2025) thanks to its steady rise in that time. Even with dividends included, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is massively underperforming the SPDR Gold Shares ETF (NYSEMKT: GLD) fund over the last three years. Data by YCharts. The S&P 500 generally is driven higher by earnings and investor sentiment, and higher earnings justify higher stock prices. When sentiment is positive, investors may be willing to pay more for stocks, based on future earnings expectations. Gold is based on supply and demand. It's a commodity, not a company. Lower interest rates can reduce borrowing costs and drive gold prices higher. However, geopolitical uncertainty is an even greater catalyst for higher gold prices. Tariff tensions, the threat of trade wars, and President Donald Trump's attacks on Federal Reserve Chairman Jerome Powell can weaken confidence in U.S. markets and potentially jeopardize their credibility. As a result, fearful investors around the world may turn away from U.S. stocks toward gold. Another driving factor is the People's Bank of China -- the largest official sector buyer of gold in 2023 and 2024. Reports indicate that the central bank boosted its gold reserves for the fifth consecutive month in March. In sum, there are valid near-term factors driving gold prices higher. However, that doesn't mean investors should dump stocks in favor of gold. Buying gold versus equity ETFs Buying gold through jewelry, coins, or bullion comes with storage and security risks. The most straightforward and liquid way to buy and sell gold is through an ETF, such as the SPDR Gold Shares. The fund uses a custodian that holds physical gold on its behalf, with the fund passing along a 0.4% expense ratio as a fee for its services. By comparison, the Vanguard S&P 500 ETF charges a mere 0.03% expense ratio. The better buy now depends on your investment objectives and existing holdings. If you're looking to add a new asset class to your portfolio that can perform well, even if geopolitical tensions persist, then gold could be worth a closer look. However, if you're looking to invest in a variety of companies under the simplicity of one tradable ticker, then an S&P 500 index fund may be a better fit. Another factor worth considering is what makes up the S&P 500. A whopping 35% of the Vanguard S&P 500 ETF is invested in just 10 companies -- Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms, Berkshire Hathaway, Broadcom, Tesla, and JPMorgan Chase. If you already own sizable positions in these companies, then buying an S&P 500 index fund may not achieve the level of diversification you're looking for. There are plenty of low-cost ETFs out there that don't include these megacap names or are less top-heavy. However, if you're looking for broad-based exposure to the market, then an S&P 500 index fund is a good starting point. Integrating gold into a diversified portfolio Gold has been on a tear in recent years, which has bridged the gap between gold's gains and the S&P 500 over the last decade. However, for most investors, it's probably best that gold serve more as a role player in a diversified portfolio, rather than the focal point. Gold could fall or underperform the S&P 500 if the supply/demand imbalance changes. It's also more difficult to analyze because it isn't based on business fundamentals. Another factor worth considering is that there aren't dividends on gold ETFs, whereas S&P 500 index funds and plenty of other equity-based ETFs have dividends, which provide passive income no matter what the market is doing. Ultimately, the amount of gold to include in a portfolio depends on your risk tolerance and what you already own. Investors with ultra-long-term time horizons may be better off keeping gold exposure to a minimum, especially given the long-term opportunity cost of investing in gold instead of the stock market. However, the near-term catalysts for gold are undeniable, so it makes sense that gold is crushing the S&P 500 year to date. Should you invest $1,000 in SPDR Gold Trust right now? Before you buy stock in SPDR Gold Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Gold Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor 's total average return is859% — a market-crushing outperformance compared to158%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 21, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
28-04-2025
- Business
- Yahoo
Gold Extends Drop as Easing Trade War Anxiety Cools Haven Demand
(Bloomberg) -- Gold fell further from last week's record high, as easing trade-war concerns curbed demand for a haven. Newsom Says California Is Now the World's Fourth-Biggest Economy At Bryn Mawr, a Monumental Plaza Traces the Steps of Black History US Cricket Deepens Bet on Texas With HQ Shift From California Los Angeles Downgraded to AA- by S&P Due to Budget Woes The Last Thing US Transit Agencies Should Do Now Bullion slid as much as 1.6%, and is down about 6% since topping $3,500 an ounce last week, when the metal's rally had taken it into overbought territory. Wild financial market moves stirred by President Donald Trump's April 2 tariff announcements have eased, and investors are watching for any signs of progress in US trade negotiations after Trump suggested another delay to his higher tariffs was unlikely. Asian economies are leading the way over their Western counterparts in trade talks with the administration. While 'a nervous sense of calm has returned' in the global marketplace, 'the idea that multiple deals could be wrapped up within weeks seems overly optimistic,' said Charu Chanana, a strategist at Saxo Capital Markets Pte. Gold's recent selloff accelerated as traders bet on signs that its explosive rally may have run too hard and too fast. Hedge fund managers cut their net-long US futures and options positions on the metal to the lowest in 14 months, the latest Commodity Futures Trading Commission data show. Shifts in options positioning — which last week saw trading volumes on the SPDR Gold Shares ETF surpass a record 1.3 million contracts — could point to an overheated market in the short term as prices run ahead of fundamental drivers, according to Barclays Plc. Still, the metal remains up by about 25% this year as Trump's aggressive trade policy and fears about the global economy spurred demand for haven assets. The gains have also been supported by inflows into bullion-backed exchange-traded funds, central-bank buying and signs of strong speculative demand in China, even as physical consumption in the world's biggest buyer falls. Gold for immediate delivery fell 1.3% to $3,277.05 by 11:08 a.m. in London. The Bloomberg Dollar Spot Index was steady. Silver declined, while platinum and platinum edged higher. (An earlier version corrected the timing of gold's record high.) --With assistance from Jack Ryan. As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Healthy Sodas Like Poppi, Olipop Are Drawing PepsiCo's and Coca-Cola's Attention Eight Charts Show Men Are Falling Behind, From Classrooms to Careers The Mastermind of the Yellowstone Universe Isn't Done Yet ©2025 Bloomberg L.P. Sign in to access your portfolio
