RING VS GLTR
4 min read
By Ron Koren, ETF Insider

RING VS GLTR

Exchange-Traded Funds (ETFs) have become a cornerstone of modern investment portfolios, offering investors exposure to a wide range of assets, industries, and sectors. In this article, we will undertake an in-depth comparison between two prominent ETFs: RING (iShares MSCI Global Gold Miners ETF) and GLTR (Aberdeen Standard Physical Precious Metals Basket Shares ETF). This comprehensive analysis will cover crucial aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure diversification.

RING Vs GLTR: Overview

The RING and GLTR ETFs offer distinct investment strategies within the precious metals sector. While RING is designed to track the performance of global gold mining companies, GLTR takes a more diversified approach by investing in a physical basket of precious metals, including gold, silver, platinum, and palladium. This fundamental difference in approach has significant implications for investors' risk exposure and potential returns, as we will delve into in the subsequent sections.

RING Vs GLTR: Sectors and Top Holdings

RING primarily focuses on the stocks of gold mining companies, with top holdings often including industry giants like Newmont Corporation and Barrick Gold. On the other hand, GLTR diversifies across multiple precious metals, which can help mitigate the impact of volatility associated with a single commodity. This diversification offers investors a unique avenue to participate in the broader precious metals market beyond gold alone, potentially enhancing portfolio stability.

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RING Vs GLTR: Capitalization and Investment Strategy

RING boasts a substantial asset under management (AUM), indicative of its popularity among investors seeking exposure to gold mining equities. Its investment strategy revolves around capturing the performance of companies engaged in gold extraction and production. GLTR's strategy focuses on providing investors with direct exposure to a physical basket of precious metals, thereby offering a tangible hedge against market fluctuations and currency devaluation.

RING Vs GLTR: Tracking Methods and Exposure Diversification

The tracking mechanisms employed by RING and GLTR significantly differ. RING tracks an index of global gold mining stocks, mirroring the sector's performance. Conversely, GLTR's tracking method involves holding physical precious metals, ensuring a direct correlation with the underlying assets' prices. This distinction in tracking methods leads to varied exposure diversification—RING offers concentrated exposure to gold mining, while GLTR provides diversified exposure across multiple precious metals.

Conclusion

RING and GLTR stand as distinctive options within the realm of precious metals ETFs, each catering to a specific investment approach. For those seeking to gain deeper insights into holdings, correlations, overlaps, and other crucial information, ETF Insider emerges as an indispensable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive insights into various financial instruments, fostering informed decision-making.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. Investors are encouraged to conduct thorough research and consult with financial professionals before making investment decisions.

Sources:

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FAQ

  • Why is RING better than GLTR?

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

  • Does GLTR beat RING?

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

  • Should I invest in RING or GLTR?

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

  • Are RING and GLTR good investments?

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

  • What is the correlation between RING and GLTR?

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