GLDM VS AAAU
4 min read
By Beqa Bumbeishvili, ETF Insider

GLDM VS AAAU

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering diversified exposure across various sectors and asset classes. In this article, we will conduct an in-depth comparison between two popular ETFs: GLDM (SPDR Gold MiniShares Trust) and AAAU (Perth Mint Physical Gold ETF). We'll delve into various crucial aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

GLDM Vs AAAU: Overview

GLDM and AAAU are two ETFs that cater to investors seeking exposure to the price of gold. GLDM, represented by the ticker symbol GLDM, aims to provide investment results that correspond to the performance of the gold bullion. On the other hand, AAAU, represented by the ticker symbol AAAU, endeavors to reflect the performance of gold's price while holding physical gold securely in vaults. These different approaches result in varied exposure and potential benefits, which we will explore further.

GLDM Vs AAAU: Sectors and Top Holdings

When it comes to sectors and top holdings, GLDM's primary focus is on gold bullion itself, which makes up a substantial portion of its holdings. On the other hand, AAAU is backed by physical gold stored in vaults, effectively reducing the influence of any particular company or sector. For investors interested in a direct gold exposure without company-specific risks, AAAU offers a unique advantage.

GLDM  overlap GLDM VS AAAUGLDM overlap GLDM VS AAAU

GLDM Vs AAAU: Capitalization and Strategy

The capitalization and strategy of these ETFs play a significant role in investors' decision-making. GLDM's asset under management (AUM) reflects its popularity among those looking to gain exposure to the performance of gold. AAAU, backed by physical gold holdings, has a unique strategy of providing a secure and direct way for investors to own physical gold. The difference in capitalization and strategies between these ETFs provides investors with options catering to different investment goals and risk appetites.

GLDM Vs AAAU: Tracking and Exposure

The tracking and exposure methods employed by GLDM and AAAU further differentiate them. GLDM seeks to track the performance of gold bullion closely, enabling investors to gain exposure to the price movement of gold. AAAU, with its physical gold holdings, offers a distinct exposure to the precious metal without relying on derivatives or futures contracts. Understanding these tracking and exposure mechanisms is crucial for investors seeking precise gold exposure.

Conclusion

GLDM and AAAU offer distinct approaches to gaining exposure to the price of gold. While GLDM focuses on tracking the performance of gold bullion, AAAU provides investors with the opportunity to own physical gold securely stored in vaults. Both ETFs cater to different investment preferences and risk profiles, allowing investors to choose the option that aligns with their objectives. For those interested in exploring more insights about these and other financial instruments, ETF Insider presents itself as the ultimate tool. With its user-friendly app, it grants investors access to valuable information about holdings, correlations, overlaps, and more.

Disclaimer: This article does not provide any investment advisory services.

Sources:

GLDM - SPDR Gold MiniShares Trust." State Street Global Advisors.
https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold-minishares-trust-gldm

"AAAU - Perth Mint Physical Gold ETF." Perth Mint.
https://www.perthmint.com/investment/etf/auaa.aspx

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FAQ

  • Why is GLDM better than AAAU?

    GLDM may be considered better than AAAU for some investors due to its specific focus, offering diversification.

  • Does AAAU beat GLDM?

    AAAU's performance relative to GLDM will vary over time, depending on market conditions.

  • Should I invest in GLDM or AAAU?

    The choice between GLDM and AAAU should align with your investment goals, risk tolerance, and desired exposure.

  • Are GLDM and AAAU good investments?

    Both GLDM and AAAU can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between GLDM and AAAU?

    The correlation between GLDM and AAAU can vary over time, reflecting differences in performance.