In an article on ETFtrends.com, Todd Shriber highlights one gold ETF that he thinks is different from others – the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE:GOAU). Shriber writes that “while many traditional gold miners ETFs emphasize exposure to miners of bullion”, GOAU’s exposure to royalty companies may have a positive impact on performance. How so? In the chart below using data from Paradigm Capital, Bloomberg and FactSet, you can see that gold royalty companies have historically outperformed all other categories of miners and the gold price from 2004 to 2018.
Gold royalty companies are specialized financiers that provide upfront capital to help fund precious metal producers’ exploration and production projects. In return, they receive royalties on whatever is produced from those projects. We believe these kinds of companies can help investors better manage many common risks associated with traditional gold producers, such as building and maintaining mines.
GOAU places a special emphasis on royalty companies, but also offers investors exposure to traditional mining companies as well. As of April 3, 2019 when ETF Trends published the article, GOAU was up with a year-to-date gain of nearly 11 percent.Learn more about GOAU today!
Read the full article, “A Golden Opportunity Among Gold Miners ETFs,” on ETFtrends.com.
Past performance does not guarantee future results. Please click here for standardized performance.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. The expense ratio is 0.60%.
U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice. ETF Trends publisher Tom Lydon is on the board of U.S. Global Investors.