AAAU Vs GLDL: Sectors and Top Holdings | ETF Insider

Exchange-Traded Funds (ETFs) have transformed the landscape of investing, providing investors with efficient access to diverse sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: AAAU (Perth Mint Physical Gold ETF) and GLDL (WCM Gold Strategy ETF). This analysis will encompass crucial aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

AAAU Vs GLDL: Overview

The AAAU and GLDL ETFs offer distinct approaches to gold investment. While AAAU focuses on physical gold backed by the Perth Mint, GLDL employs an active strategy in selecting global gold mining companies. This fundamental difference in investment methodology results in varying risk and return profiles, which we will delve into further.

AAAU Vs GLDL: Sectors and Top Holdings

AAAU primarily invests in physical gold stored in secure vaults, while GLDL actively manages a portfolio of gold mining equities. The sectors and top holdings within these ETFs reflect their respective strategies. AAAU's holdings predominantly consist of gold bullion, while GLDL's top holdings might include shares of companies such as Newmont Corporation and Barrick Gold. Understanding these sectors and holdings assists investors in aligning their choices with their investment objectives.

AAAU overlap AAAU VS GLDL

AAAU Vs GLDL: Capitalization and Strategy

AAAU's size, reflected by its impressive Asset Under Management (AUM), showcases its popularity among investors who seek direct exposure to physical gold. On the other hand, GLDL's strategy involves evaluating and selecting gold mining companies based on fundamental analysis. The divergence in capitalization and strategy leads to distinct risk and return dynamics, necessitating careful consideration by potential investors.

AAAU Vs GLDL: Tracking and Exposure

AAAU offers exposure to the market price of gold by physically holding the precious metal. GLDL's exposure, however, stems from its investments in gold mining equities and is subject to the performance of the underlying companies. The tracking mechanisms differ: AAAU tracks the price of gold, while GLDL tracks an actively managed index of gold mining stocks. Understanding these tracking and exposure methods empowers investors to make informed decisions based on their risk tolerance and investment goals.

Conclusion

AAAU and GLDL embody unique approaches to gold investment, catering to different investor preferences and risk appetites. For those who wish to delve deeper into insights regarding holdings, correlations, and overlaps, the ETF Insider app emerges as an invaluable tool. With its user-friendly interface, the app provides comprehensive information about these ETFs and other financial instruments, aiding investors in making informed choices aligned with their financial goals.

Disclaimer: This article is intended solely for informational purposes and does not provide investment advisory services.

Sources:

"AAAU - Perth Mint Physical Gold ETF." Aberdeen Standard Investments. https://www.aberdeenstandard.com/en-us/us/institutional/etfs/funds/aaau
"GLDL - WCM Gold Strategy ETF." WisdomTree. https://www.wisdomtree.com/etfs/thematic/gldl

Get started