Gold ETF Funds

Gold ETF Funds are just one segment of the growing selection of Exchange Traded Funds (ETF's) throughout the world today. There are many advantages of trading ETF's over individual stocks, commodities or currencies, the most notable of which is, that you get to participate in the price action of a broad based market in the most cost effective way.

Here are some other advantages of trading ETF's:

1. You are not exposed to the fortunes or otherwise of one particular company. Individual company stock prices can and do spike between trading sessions following announcements or news. Such things are minimized in ETF's as they cover a broad based market where individual company stock prices are absorbed.

2. The price of ETF options are usually cheaper than company stock options.

3. ETF market trends can be more easily identified and followed. The price action is less erratic. Since the underlying market is broad based, market makers cannot manipulate the price in the same way that they can for individual company stocks.

4. Exchange Traded Funds are structured like companies - so they pay dividends. However, you'll find that most of the Gold ETF Funds listed below do not pay dividends because they are not based on company profits but a commodity price. The DGL Gold Fund does pay dividends.

5. Many ETF's experience high daily trading volume, which means that it's easy to enter and exit positions. Gold ETF Funds are no exception.

6. Broad based markets can be traded off against each other to minimize portfolio risk. For example, the stock market might be declining while at the same time, commodities such as gold, might be rising.

Gold ETF Funds That Trade on the US Markets

GLD     SPDR Gold Trust 

IAU     iShares Gold Trust

SGOL     ETFS Physical Swiss Gold Shares

OUNZ     Merk Gold Trust

AGOL     ETFS Physical Asian Gold Shares

These ETFs are designed to track the spot price of gold bullion. The spot price for gold bullion is determined by market forces in the 24-hour global over-the-counter (OTC) market for gold. The OTC market accounts for most global gold trading, and prices quoted reflect the information available to the market at any given time.

DGP     PowerShares DB Gold Double Long ETN
The index is designed to reflect the performance of certain gold futures contracts plus the returns from investing in 3 month United States Treasury Bills.

DGL     PowerShares DB Gold Fund
The DBIQ Optimum Yield Gold Index Excess Return is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.

UGL     ProShares Ultra Gold
ProShares Ultra Gold seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London.

GLL     ProShares UltraShort Gold
ProShares UltraShort Gold seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of gold bullion as measured by the U.S. Dollar fixing price for delivery in London.

DZZ     PowerShares DB Gold Double Short ETN
The index is designed to reflect the performance of certain gold futures contracts plus the returns from investing in 3 month United States Treasury Bills.

TBAR     RBS Gold Trendpilot ETN
The index utilizes a systematic trend-following strategy to provide exposure to either the Price of Gold Bullion or the yield on a hypothetical notional investment in 3-month U.S. Treasury bills, depending on the relative performance of the Price of Gold Bullion on a simple historical moving average basis.

UGLD     VelocityShares 3x Long Gold ETN linked to the S&P GSCI Gold Index
The index offers exposure to gold futures contracts.

DGZ     PowerShares DB Gold Short ETN
The index is designed to reflect the performance of certain gold futures contracts plus the returns from investing in 3 month United States Treasury Bills.
 
UBG     UBS E-TRACS CMCI Gold Total Return ETN
The CMCI Gold TR measures the collateralized returns from a basket of gold futures contracts. The commodity futures contracts are diversified across five constant maturities from three months up to three years.

DGLD     VelocityShares 3x Inverse Gold ETN linked to S&P GSCI Gold Index Excess 
The index offers exposure to gold futures contracts.

GLDS     Direxion Daily Gold Bear 3X Shares

GLDL     Direxion Daily Gold Bull 3X Shares

The benchmark on these two, is the daily last sale price value occurring on or before 4:00 p.m. E.T. of a standard futures contract for the current active month for 100 troy ounces of gold, specified by the Chicago Mercantile Exchange. The benchmark's value will be calculated as the last sale price published by the CME on or before 4:00 p.m. E.T. for the Gold Benchmark Futures Contract and may reflect trades occurring and published by the CME outside the normal trading session for the Gold Benchmark Futures Contract.

GYEN     AdvisorShares Gartman Gold/Yen ETF
GEUR     AdvisorShares Gartman Gold/Euro ETF
GLDE     AdvisorShares International Gold ETF
GGBP     AdvisorShares Gartman Gold/British Pound ETF

These ETFs are not linked to a specific benchmark.

GLDI     Credit Suisse Gold Shares Covered Calls ETN
This index seeks to track the return of a "covered call" strategy on the shares of the SPDR Gold Trust (the "GLD Shares"). The ETNs pay a monthly variable coupon based on the notional option premiums received from the sale of covered call options within the index. The Index reflects changes in the price of the GLD Shares and the notional option premiums received from the sale of monthly call options on the GLD Shares less notional trading costs incurred in connection with the covered call strategy.

More information about Gold ETF Funds, including current price and other trading statistics, can be found at the ETF Database.

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