This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

State Street Mines ETF Gold

State Street Global Advisors literally struck gold last year with the introduction of the streetTracks Gold Shares (GLD) exchange-traded fund. Now, as the gold ETF approaches its first birthday, the question is whether State Street can keep the hits coming.

Since it started trading on the New York Stock Exchange on Nov. 18, 2004, the GLD, whose shares represent one-tenth the price of an ounce of gold bullion, has exploded to more than $3.15 billion in assets. It trades, on average, close to 2 million shares a day. In terms of price, the GLD is up 5% since its debut, rising to $46.66 from $44.43, along with the price of gold.

Making the GLD's success all the more lustrous is that it comes at the expense of rival Barclay's offering, the iShares Comex Gold (IAU) ETF, which first started trading a few months after the GLD in January. At last count, the IAU had assets of $186 million and trades in the neighborhood of 84,000 shares a day.

Expenses for both funds are similar, at 40 basis points, a sum Morningstar analyst Karen Wallace calls "pretty reasonable" considering that a typical precious metal fund in the category costs 1.67%.

Analysts agree that first-mover advantage and the superior ticker symbol -- how many traders truly remember that AU is the symbol for gold on the periodic table? -- were the prime reasons for State Street's first head-to-head victory over its powerful rival in years. Says Lipper's Don Cassidy, "First mover advantage is huge in ETFs. If it works, then traders stick with it."

Nevertheless, the GLD also was the culmination of years of effort and coordination by State Street, along with the fund's sponsor, the World Gold Council. And some analysts say it's the big win that may just rejuvenate the company in the escalating ETF wars.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DVY $74.56 0.00%
DIA $161.94 0.00%
GLD $112.32 0.00%
IAU $11.33 0.00%
SDY $72.45 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs