Why do most investors prefer GLD stock if it has the highest fee?
Asked 4 years ago
Hello! I have a question about gold ETFs on eToro. Those are GLD (SPDR Gold), GLDM (SPLD Gold Minishares), and IAU (iShares Gold Trust). GLD has a Gross Expense Ratio of 0,4%, GLDM 0,18% and IAU 0,25%. Though GLD has the highest Gross Expense Ratio, 5,36% of eToro investors ´have buy positions` while in the others the values are respectively 0,03% (GLDM) and 0,90%. (IAU). Why do most investors prefer GLD if it has the highest fee? Thank you.
Andrew Moran
Wednesday, June 30, 2021
There are two reasons why investors and gold bugs like GLD.
The first is that it is the second-largest exchange-traded fund (ETF) in the world. This makes it highly liquid for a gold-based investment.
The second is that the trust holds physical gold bullion (and cash) and routinely adds to its deposits of gold.
It might have the highest fees, but this is the price you pay for security and confidence in a gold-backed investment.
Please follow our Community Guidelines
Related Articles
eToro vs Coinbase: Compare Products, Features, Fees, & More
Andrew Moran
October 31, 2021
Webull vs. eToro: Compare Products, Features, Fees, & More
Andrew Moran
December 23, 2024
Guide to Day Trading Stocks for Beginners
Andrew Moran
February 27, 2022
Related Posts
Filip Dimkovski
Should I Invest Into QQQ or VOO ETF?
Andia Rispah Igobwa
How Many Shares per Stock Should I Buy?
Filip Dimkovski
Top 6 Forex Brokers for Day Trading
Can't find what you're looking for?