GLD SPDR Gold Shares ETF
GLD is a commodity ETF that tracks the price of gold bullion, giving investors exposure to gold without the need to store physical gold. One of the largest and most liquid gold ETFs in the world.
Key Facts
- • Issued by State Street Global Advisors, the largest ETF provider globally
- • Tracks the price of gold bullion, with each share representing approximately 1/10th ounce of gold
- • Expense ratio of 0.40%, higher than stock ETFs due to gold storage costs
- • Widely used as a hedge against inflation, currency depreciation, and geopolitical risk
- • Low correlation with stock market indices like the S&P 500, providing diversification benefits
- • Highly liquid, with massive daily trading volume and tight bid-ask spreads
Related Trading Concepts
ETF
Exchange-Traded Fund: A type of investment fund that trades on a stock exchange, just like an individual stock. ETFs typically hold a basket of assets (stocks, bonds, commodities) and offer instant diversification at low cost.
Expense Ratio
The annual fee an ETF or mutual fund charges to manage your money, expressed as a percentage of your total investment. Higher expense ratios reduce your net returns over time.
Liquidity
How easily you can buy or sell an asset without moving its price. High liquidity means large orders fill with little price impact.
Diversification
Spreading risk across different assets, strategies, or markets so a single bad event cannot seriously hurt the whole account.
Volatility
How much and how fast an asset price swings. High volatility means large price moves in short periods; low volatility means calm, small moves.