The first exchange-traded fund (ETF) for gold, the StreetTracks Gold Trust, has begun
trading on the New York Stock Exchange. This ETF, trading under the ticker symbol GLD,
will make investing in bullion easier for investors. Now, individuals and small
institutions have a simple, cost-efficient vehicle for investing in gold as an asset
class. Previously, you had to buy the physical metal, with the associated storage and
insurance costs as well as wide buy-sell spreads, or use complicated derivatives.
Within a few months, Barclays Global Investors is expected to come out with another
gold ETF, iShares COMEX Gold Trust, which will be listed on the American Stock
Exchange. Both ETFs are designed to reflect the price of gold owned by the trust, less
the expenses of the trust’s operations. Expenses will be low–0.4 percent of assets per
year
