Gold is seen as a safe heaven during market turbulence and economic unknowns but it can be scary to invest in gold.
Do you buy physical gold bullions? Do you buy a gold miner without understanding all the socioeconomic challenges that a miner could face? Or do you simply go for a Gold ETF?
Those are the 3 options available to you to get gold exposure. As it happens, you actually can use a Canadian Gold ETF to expose yourself to the physical gold or to the gold miners or to both. The options with gold ETFs are there.
While Exchange Traded-Funds (or ETFs for short) were introduced in the 1990’s, they have recently become a strong investment vehicles for many investors to avoid the abusive management fees of the mutual funds.
ETFs can provide a way to get exposed to gold if that’s of interest. Below are the Canadian gold ETFs you can pick from.
List of Canadian Gold ETFs
Here are the complete list of Canadian gold ETFs and their performance over the past 5 years. While they have a focus on gold, the performance is far from being equal.
I have excluded ETFs that invest in “future” derivatives as it falls outside of bullions and stocks and is more akin to trading a currency.
|2||ZJG||BMO Junior Gold Index ETF||19/01/2010||BMO Asset Management||Gold Stocks|
|5||CGL||IShares Gold Bullion ETF||28/05/2009||BlackRock||Bullions|
|6||XGD||IShares S&P/TSX Global Gold Index ETF||23/03/2001||BlackRock||Gold Stocks|
|7||HGY||Horizons Gold Yield ETF||17/12/2010||Horizons ETFs Management||Gold Stocks|
|12||HEP||Horizons Enhanced Income Gold Producers ETF||11/04/2011||Horizons ETFs Management||Gold Stocks|
|13||KILO||Purpose Gold Bullion Fund||29/10/2019||Purpose Investments||Bullions|
|14||PHYS||Sprott Physical Gold Trust||24/02/2010||Sprott||Bullions|
|15||MNT||The Canadian Gold Reserves exchange traded receipt||29/11/2011||Royal Canadian Mint||Bullions|
|16||ZGD||BMO Equal Weight Global Gold Index ETF||14/11/2012||BMO Asset Management||Gold Stocks|
|17||CGXF||CI First Asset Gold+ Giants Covered Call ETF||01/06/2011||CI First Asset||Gold Stocks|
While I do not have gold in my portfolio, gold has long been considered a defensive investment. Holding gold can put your mind at ease during poor market conditions, or market volatility. Another option is to hold bonds but it doesn’t have the same performance against inflation as some would say.
Obviously, no one can predict gold prices and your guess is as good as mine when it comes to how gold will be priced in the future but for now we can evaluate the various approach of the listed Canadian gold ETFs.
Now, it’s important to separate the asset classes to compare apples to apples. As such you can see how the gold bullion ETFs do separately from the gold miners.
Canadian Gold Bullion ETFs
The objective of the following ETFs is to replicate the performance of the price of gold bullion for investors, less expenses and fees. Many have a $USD option as well if desired.
Canadian Gold Stocks ETFs
The purpose of those ETFs is to primarily expose investors to gold stocks through various strategies.
Each of the ETFs will hold the various gold stocks traded on the Canadian and US exchanges.
|TickerKey||Ticker||Company||Sector||Industry||Score||Quote||Market Cap||P/E||FPE||EPS||Yield Raw||Yield||PayoutRatio||Payments||Dividend||Chowder||GrowthRating||IncomeRating||Tollbooth||Ambassador||Achiever||Aristocrat||King||Country||Graph|
|TSE:ABX||ABX||Barrick Gold||Basic Materials||Gold||0.51||26.19||37.19||16.32||16.32||1.60||0.0169||1.69||0.2765||4||0.36||0.0169||2||5||Intermediate||NO||NO||NO||NO||Canada||1|
|TSE:FNV||FNV||Franco-Nevada Corp||Basic Materials||Gold||0.48||171.23||32.61||81.52||81.52||2.10||0.0075||0.75||0.6086||4||1.04||0.0496||6||5||Intermediate||YES||YES||YES||NO||Canada||1|
|TSE:WPM||WPM||Wheaton Precious Metals Corp||Basic Materials||Gold||0.50||50.99||18.56||36.80||36.80||1.39||0.0125||1.25||0.4597||4||0.52||0.0962||5||4||Intermediate||NO||NO||YES||NO||Canada||1|
|TSE:AEM||AEM||Agnico Eagle Mines||Basic Materials||Gold||0.63||76.82||15.17||29.72||29.72||2.58||0.0224||2.24||0.6668||4||1.40||0.2034||7||5||Intermediate||NO||NO||YES||NO||Canada||1|
|TSE:YRI||YRI||Yamana Gold||Basic Materials||Gold||0.43||5.63||4.42||20.59||20.59||0.27||0.0229||2.29||0.4779||4||0.11||0.0348||1||4||Intermediate||NO||NO||NO||NO||Canada||1|
|TSE:AGI||AGI||Alamos Gold||Basic Materials||Gold||0.50||9.85||3.87||15.27||15.27||0.65||0.0125||1.25||0.1891||4||0.10||0.0259||3||4||Intermediate||NO||NO||NO||NO||Canada||1|
|TSE:OR||OR||Osisko Gold Royalties||Basic Materials||Gold||0.34||14.84||2.48||142.83||142.83||0.10||0.0135||1.35||2.0000||4||0.20||0.0492||4||1||Intermediate||NO||NO||NO||NO||Canada||1|