abrdn Physical Gold Shares ETF (SGOL)SGOL

ETF Overview: abrdn Physical Gold Shares ETF (AAAU)

Profile: AAAU is a physically-backed exchange-traded fund (ETF) that tracks the price of gold bullion. It invests in gold bars held in secure vaults, aiming to provide investors with convenient and cost-effective access to the gold market. The ETF is passively managed and has an expense ratio of 0.18%.

Objective: The primary objective of AAAU is to track the performance of the gold bullion price, less expenses. It seeks to provide investors with a way to participate in the gold market without the need to purchase and store physical gold.

Issuer: The issuer of AAAU is abrdn, a global investment management firm with a long history and a strong reputation in the financial industry. The company has over $600 billion in assets under management and is known for its expertise in managing precious metals investments.

Market Share: AAAU is the largest physically-backed gold ETF in the US, with a market share of approximately 30%.

Total Net Assets: As of November 10, 2023, AAAU has over $15 billion in total net assets.

Moat: AAAU's competitive advantages include its large size, low expense ratio, and strong track record. The ETF's physical gold holdings provide investors with a high degree of transparency and security.

Financial Performance: AAAU has historically outperformed the gold price, delivering higher returns after accounting for its expense ratio. The ETF's performance is highly correlated with the gold price, with a beta of approximately 1.0.

Benchmark Comparison: AAAU's performance is compared to the LBMA Gold Price Index, which tracks the spot price of gold bullion. The ETF has closely tracked the benchmark index over time, demonstrating its effectiveness in replicating the gold price.

Growth Trajectory: The demand for gold as an inflation hedge and safe haven asset is expected to remain strong in the coming years. This could drive continued growth in AAAU's assets under management.

Liquidity: AAAU is a highly liquid ETF, with an average daily trading volume of over 10 million shares. The ETF's bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics: Factors affecting AAAU's market environment include global economic conditions, inflation expectations, interest rate policies, and geopolitical events.

Competitors: Key competitors of AAAU include the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust (IAU). These ETFs offer similar exposure to gold, but they may have different expense ratios and liquidity levels.

Expense Ratio: The expense ratio of AAAU is 0.18%, which is considered low for a physically-backed gold ETF.

Investment Approach and Strategy: AAAU invests in physical gold bars held in secure vaults. The ETF does not use any derivatives or leverage.

Key Points:

• AAAU is the largest physically-backed gold ETF in the US.
• The ETF offers investors a convenient and cost-effective way to gain exposure to gold.
• AAAU has a strong track record of performance and is highly liquid.
• The ETF's expense ratio is competitive.

Risks:

• AAAU's performance is highly correlated with the gold price, which can be volatile.
• The ETF is subject to risks associated with gold mining and storage.
• Political and economic events can impact the gold price and the value of AAAU.

Who Should Consider Investing: AAAU is suitable for investors who are looking for a way to diversify their portfolios and gain exposure to gold as an inflation hedge and safe haven asset. Investors should consider their investment goals and risk tolerance before investing in AAAU.

Fundamental Rating Based on AI: 8.5/10

AAAU receives a strong rating based on our AI analysis. The ETF has a solid track record, low expense ratio, high liquidity, and exposure to a valuable and widely traded asset class. However, it is important to note that the gold market can be volatile, and investors should be prepared for potential fluctuations in the ETF's price.

Resources and Disclaimers:

• abrdn website: https://us.abrdn.com/individual/investments/etfs/physical-gold-shares-etf-us
• Morningstar: https://www.morningstar.com/etfs/arcx/gld/quote
• ETF.com: https://www.etf.com/AAAU

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making any investment decisions.