Week in Review Gold

Good as Gold? | 26 July 2020

Weekly Update

With a tight yield environment, relaxed monetary policy, and record ETF inflows—$40B for YTD 2020—gold rapidly gains ground in asset allocation. As the precious metal approaches an all-time high of $1,900 per oz, gold may be an anchor for advisors seeking to protect clients from churning waves of credit risk and the rocky shores of low yields. 

Although not traditionally a part of a 60/40 portfolio, gold has been a safe haven, rewarding investors with a total return of 25% YTD while posting records in most G-10 economies. An extended period of lower interest rates and less-than-stellar corporate earnings will boost its luster and attract advisors and investors alike. 

To help navigate the myriad of choices for this distinct market exposure, let’s take a look at two gold ETFs from VanEck. Here’s our analysis on GDX, and here we have GDXJ.

When compared head-to-head with peer funds, the recommended options offer benefits like reduced risk, lower fund expenses, and improved available capital. But most of all, the return opportunity provided by GDX and GDXJ is unmatched for the long-term investor.

What We’re Reading

Our Top Posts

Connect with Us

Hop on a quick, scheduled 15 min Zoom call with us and explore some new ideas about how to engage your clients and families. 

Also, feel free to forward this email. For updates in real time, follow us on social media at Twitter @Portformer and LinkedIn at Portformer.

Have a great week!

Best,

John DiBenedetto and the Portformer Team

John DiBenedetto

Sales | Business Development | Customer Success

Add comment

  • Workflows & implementable insights — to elevate each step of the advisor/client experience

    Use our head-to-head Replacement Scores™ to quickly create client proposals, discover funds, improve model portfolios, and monitor investment plans