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

New Gold ETF Challenges Powers

The debut of ETFs Physical Swiss Gold Shares (SGOL) today pits the new fund, from successful issuer ETF Securities, against existing physical gold ETFs like SDPR Gold Shares (GLD) and iShares COMEX Gold (IAU).

Physical commodity ETFs offer investors exposure to physical stores of precious metals like gold, silver and palladium. Each share of the fund represents a fractional ownership in a supply of physical gold held for shareholders in a vault. By owning shares of these ETFs, rather than buying bars of gold, investors can avoid hassles like storage.

The timing of SGOL's debut couldn't be better. September's gold surge helped the yellow metal go as high as $1,000 a troy ounce, as investors look to the metal for purchasing protection and stability. Despite outflows from some gold ETFs in August, the new product from ETF Securities seems destined for greatness.

For some time now, ETF Securities has been quietly establishing itself as a global leader in physical commodity ETFs. The London-based commodity ETF provider has been busy launching a variety of physical ETFs worldwide. While SGOL will be only the second U.S. offering, ETF Securities launched five physical commodity funds in Tokyo this summer as older funds in London ballooned. (See Physical Commodity ETFs Bloom.)

ETF Securities debuted its first U.S. physical commodity fund, ETFS Silver Trust (SIVR) in late July. The new fund has been a hit, filling a gap in the U.S. market for physical silver ETF funds, and now has more than $130 million in assets.

SGOL offers the same exposure as older rivals like GLD and IAU, but at a lower price point. While the new fund is up against mammoth rivals like the $34.7 billion GLD and $2.4 billion IAU, it has aimed to establish itself by undercutting their price points. The expense ratio for SGOL is 0.39%, lower than IAU and GLD's 0.4% ratios.
1 of 2

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
IAU $10.22 -1.06%
UNG $8.71 -3.01%
SGOL $103.27 -1.16%
SIVR $13.83 -0.58%
GSG $15.63 -1.64%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs