IAU VS GLTR
4 min read
By Beqa Bumbeishvili, ETF Insider

IAU VS GLTR

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering diversified exposure across various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two popular ETFs: IAU (iShares Gold Trust) and GLTR (Aberdeen Standard Physical Precious Metals Basket ETF). We'll explore various aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

IAU Vs GLTR: Overview

When it comes to investing in precious metals, IAU and GLTR are two distinct options with unique approaches. IAU seeks to mirror the price of physical gold, while GLTR offers a broader exposure by tracking a basket of precious metals, including gold, silver, platinum, and palladium. Understanding the core objectives of these ETFs is essential for investors aiming to tap into the potential of precious metals.

IAU Vs GLTR: Sectors and Top Holdings

IAU predominantly focuses on gold, holding physical gold bars as its primary asset. On the other hand, GLTR takes a more diversified approach by including multiple precious metals in its portfolio. This inclusion of various metals can provide a level of risk diversification not achievable with a single-metal ETF like IAU. Investors keen on precious metals exposure can benefit from comparing the weightage and distribution of these metals within the GLTR ETF.

IAU overlap IAU VS GLTRIAU overlap IAU VS GLTR

IAU Vs GLTR: Capitalization and Strategy

IAU's substantial Asset Under Management (AUM) reflects its popularity among investors who seek a direct play on gold's price movements. In contrast, GLTR's strategy of tracking a basket of precious metals adds an extra layer of complexity. The varying capitalizations of these ETFs highlight the differences in investor sentiment and market preferences. Choosing between IAU and GLTR depends on one's outlook on individual metals versus a diversified precious metals approach.

IAU Vs GLTR: Tracking and Exposure

IAU's primary objective is to match the daily price changes of gold, making it a suitable choice for investors interested in the specific movements of this precious metal. GLTR's approach goes beyond gold, encompassing silver, platinum, and palladium. This broader exposure reflects a more comprehensive view of the precious metals market. Investors need to weigh their preference for a targeted versus diversified exposure when deciding between these two ETFs.

Conclusion

IAU and GLTR offer distinct pathways for investors looking to gain exposure to the precious metals market. While IAU directly tracks the price of physical gold, GLTR offers a diversified basket of precious metals. The choice between these ETFs depends on various factors, including the investor's risk tolerance, market outlook, and portfolio diversification strategy.
For those seeking in-depth insights into the holdings, correlations, overlaps, and other intricate details of these ETFs, utilizing a tool like ETF Insider can be invaluable. With its user-friendly app, ETF Insider provides investors with comprehensive information on a wide range of financial instruments, helping them make informed investment decisions.

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

Sources:
iShares Gold Trust (IAU) - iShares by BlackRock
Aberdeen Standard Physical Precious Metals Basket ETF (GLTR) - Aberdeen Standard Investments

IAU ETF issuer
IAU ETF official page

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FAQ

  • Why is IAU better than GLTR?

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

  • Does GLTR beat IAU?

    GLTR's performance relative to IAU will vary over time, depending on market conditions.

  • Should I invest in IAU or GLTR?

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

  • Are IAU and GLTR good investments?

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

  • What is the correlation between IAU and GLTR?

    The correlation between IAU and GLTR can vary over time, reflecting differences in performance.