AAAU Vs SGOL: Tracking Methods & Exposure

Exchange-Traded Funds (ETFs) have brought a new dimension to investing, offering diversified exposure across different sectors and asset classes. In this article, we will conduct an in-depth comparison of two prominent ETFs: AAAU (Perth Mint Physical Gold ETF) and SGOL (Aberdeen Standard Physical Gold Shares ETF). We will delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

AAAU Vs SGOL: Overview

The AAAU and SGOL ETFs both cater to investors seeking exposure to the value of physical gold. While both ETFs are focused on the same underlying asset, there are nuances in their offerings. AAAU tracks the performance of physical gold stored at the Perth Mint in Australia, providing a unique way to invest in the precious metal. On the other hand, SGOL tracks the price of gold through physical bullion held in vaults managed by Aberdeen Standard Investments. These distinctions impact various aspects, which we will explore further.

AAAU Vs SGOL: Sectors and Top Holdings

In terms of sectors, both AAAU and SGOL concentrate solely on the gold market. Their top holdings primarily consist of allocated gold bullion, making them highly correlated to gold prices. This aligns with their objective of providing investors with exposure to the underlying metal's price movement. Understanding these sectors and top holdings helps investors assess the extent to which these ETFs match their investment goals and risk appetite.

AAAU overlap AAAU VS SGOL

AAAU Vs SGOL: Capitalization and Investment Strategy

Capitalization reflects an ETF's popularity and ability to attract investor funds. AAAU and SGOL both have substantial assets under management (AUM), indicating strong investor interest in gold exposure. In terms of investment strategy, both ETFs adopt a passive approach by closely tracking the price of gold. However, the difference in the physical storage locations and management companies may influence their operational efficiency and costs. It's important for investors to consider these factors when evaluating their potential investments.

AAAU Vs SGOL: Tracking Methods and Exposure

AAAU and SGOL utilize different approaches to track the price of gold. AAAU's gold holdings are stored at the Perth Mint and are periodically audited to ensure their accuracy. SGOL's gold bullion is stored in secure vaults and subjected to regular audits as well. The tracking methods for both ETFs involve a combination of physical storage and transparent reporting, which adds an extra layer of credibility for investors seeking exposure to gold without the need to physically own and store it.

Conclusion

In summary, AAAU and SGOL offer investors distinct ways to access the value of physical gold through the convenience of ETFs. The choice between these two ETFs depends on factors such as the investor's preference for the storage location, management company, and investment approach. As with any investment decision, thorough research and a clear understanding of the underlying assets are crucial.

For those who wish to delve deeper into the holdings, correlations, overlaps, and various insights related to these ETFs and other financial instruments, ETF Insider provides an invaluable tool. The user-friendly app offers a wealth of information that can aid investors in making informed decisions about their portfolios.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. Investors should conduct their own research and seek professional advice before making any investment decisions.

Sources:

AAAU ETF Overview. Perth Mint.
SGOL ETF Overview. Aberdeen Standard Investments.

SGOL quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the SGOL abrdn Physical Gold Shares ETF, access our dedicated page now.

Get started