Exchange-Traded Funds (ETFs) have become a popular choice for investors seeking exposure to various asset classes, including precious metals. In this article, we will conduct a comprehensive comparison between two notable ETFs: GLTR (Aberdeen Standard Physical Precious Metals Basket Shares) and GLDM (SPDR Gold MiniShares Trust). We'll explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
GLTR and GLDM are two ETFs that offer different ways to invest in precious metals. While GLTR provides exposure to a diversified basket of precious metals, including gold, silver, platinum, and palladium, GLDM focuses exclusively on gold. This fundamental difference in composition gives investors the opportunity to tailor their investments based on their outlook for specific precious metals.
The GLTR ETF encompasses a broader range of precious metals, distributing its exposure across multiple sectors. Its top holdings may include various metals such as gold, silver, platinum, and palladium, with each metal contributing to the fund's overall performance. In contrast, GLDM's primary holding is gold, reflecting its concentrated focus on this precious metal. Understanding the sectors and top holdings is crucial for investors aiming to capitalize on different aspects of the precious metals market.
GLTR overlap GLTR VS GLDM
GLTR's strategy involves providing investors with exposure to a diversified precious metals basket, which can act as a hedge against inflation and market uncertainties. The ETF's capitalization may vary based on the market prices of its underlying metals. On the other hand, GLDM is solely focused on tracking the performance of gold, a precious metal often considered a safe-haven asset. Its strategy involves closely mirroring the price movements of gold bullion. The difference in capitalization and strategy offers distinct risk and return profiles for investors to evaluate.
GLTR achieves its exposure by holding physical precious metals, and its performance is influenced by changes in the prices of these metals. Investors in GLTR gain exposure to the collective movement of gold, silver, platinum, and palladium prices. Conversely, GLDM tracks the price of gold through ownership of gold bullion. The tracking methods adopted by these ETFs impact the degree of correlation to underlying metal prices and provide investors with different avenues to gain exposure to precious metals.
GLTR and GLDM offer unique approaches to investing in precious metals, catering to different investment preferences and objectives. Whether an investor seeks broad diversification across multiple precious metals or a more targeted exposure to gold, these ETFs provide options for various strategies. To gain deeper insights into the holdings, correlations, overlaps, and other critical aspects of these ETFs, investors can utilize tools like ETF insider. This user-friendly app equips investors with valuable information to make informed decisions about their precious metal investments.
Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.
Sources:
GLTR ETF issuer
GLTR ETF official page
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