SPDR® Gold Shares (GLD)

ETF SPDR® Gold Shares (GLD) - Summary

Profile:

• Primary Focus: Physical gold bullion.
• Asset Allocation: 100% gold bullion.
• Investment Strategy: Tracks the price of gold bullion, aiming to reflect the performance of the overall gold market.

Objective:

• Provide investors with a convenient and cost-effective way to gain exposure to gold as an asset class.

Issuer:

• Company: State Street Global Advisors (SSGA)
• Reputation and Reliability: SSGA is a highly reputable and experienced asset management firm with a long history of managing ETFs.
• Management: The ETF is managed by a team of experienced professionals with expertise in the gold market.

Market Share:

• GLD is the largest gold ETF globally, with over $60 billion in assets under management and a market share of approximately 38%.

Total Net Assets:

• As of November 2023, GLD has over $60 billion in assets under management.

Moat:

• First-mover advantage: GLD was the first gold ETF launched in the US and continues to be the market leader.
• Scale and liquidity: GLD's large size and high liquidity make it an attractive investment for institutional and individual investors.
• Cost efficiency: GLD has a low expense ratio compared to other gold ETFs.

Financial Performance:

• GLD has historically tracked the price of gold closely, with a correlation coefficient of over 0.95.
• Over the past 10 years, GLD has returned an average of 10% annually.

Benchmark Comparison:

• GLD has outperformed the S&P GSCI Gold Index, its benchmark, over the past 10 years.

Growth Trajectory:

• Gold is a safe-haven asset, and demand for gold tends to increase during periods of economic uncertainty. This could lead to continued growth for GLD in the future.

Liquidity:

• GLD has an average daily trading volume of over 20 million shares, making it one of the most liquid ETFs in the market.
• The bid-ask spread is typically very tight, indicating low trading costs.

Market Dynamics:

• Economic factors: Rising inflation and interest rates can negatively impact gold prices.
• Geopolitical events: Political instability and global conflicts can increase demand for gold as a safe-haven asset.
• Supply and demand: Changes in global gold production and demand can impact gold prices.

Competitors:

• iShares Gold Trust (IAU) - Market share: 28%
• VanEck Merk Gold Trust (OUNZ) - Market share: 10%
• SPDR Gold MiniShares Trust (GLDM) - Market share: 7%

Expense Ratio:

• GLD has an expense ratio of 0.40%.

Investment Approach and Strategy:

• Strategy: GLD aims to track the price of gold bullion.
• Composition: GLD holds gold bullion in the form of bars stored in vaults around the world.

Key Points:

• GLD is the largest and most liquid gold ETF in the world.
• GLD provides investors with a convenient and cost-effective way to gain exposure to gold.
• GLD has a strong track record of tracking the price of gold.

Risks:

• Volatility: Gold prices can be volatile, which can impact the value of GLD.
• Market risk: The gold market is subject to various risks, including economic and geopolitical factors.
• Counterparty risk: GLD is subject to counterparty risk as it relies on a custodian to store its gold bullion.

Who Should Consider Investing:

• Investors seeking exposure to gold as an asset class.
• Investors looking for a hedge against inflation and economic uncertainty.
• Investors with a long-term investment horizon.

Evaluation of ETF SPDR® Gold Shares's Fundamentals Using an AI-Based Rating System:

Fundamental Rating Based on AI: 8.5/10

Justification:

GLD scores highly in several key areas, including asset size, liquidity, and expense ratio. The ETF also has a long history and a strong track record of tracking the price of gold. However, GLD's dependence on a custodian for gold storage introduces some counterparty risk.

Resources and Disclaimers:

• State Street Global Advisors: https://www.spdrgoldshares.com/
• Morningstar: https://www.morningstar.com/etfs/gld/gld
• ETF.com: https://www.etf.com/etf-profile/gold/gld

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.