Larry Berman CFA, CMT, CTAiShares S&P/TSX Global Gold Index ETFXGD.TOHOLDFeb 22, 2021

Basket of gold miners. Underperformed TSX and spot gold since early 2020. If looking to hedge against inflation or geopolitical events, look at gold bullion instead. With mining companies, so much can go wrong.

Large-cap gold companies, so it skews to a smaller group. Gold trying to break through all-time highs, and the companies are participating alongside. Gold exposure is very good. Gold stocks combine beta of the gold plus the stock market. Precious metal provides more of a safe haven.

Pair it with a bit of gold exposure, so you have something else in your portfolio if there's a market calamity. Gold gives your portfolio diversification.

While GLCC is perfect short-term play for income needs, for the long term, he'd prefer a non-covered-call strategy like XGD. Gives you growth and builds on your capital.

Gold stocks haven't kept up with the price of gold. He expects they will rise from the current $17 here to about $21, at which he will sell. He is an active trader. He will wait. He has faith.

He likes gold and commodities. The US dollar is near support but won't return to strength. Therefore, gold should do well. (They have a negative correlation.) The XGD could return to $20. Also, macro seasonality in mid-August to September could help.

At the time it was a safe haven during the pandemic. A short-duration trade. Once the markets took off, he moved into equities.

He likes gold and he holds bullion. XGD is pricey, though. The underlying stocks here are Newmont, Barrick, Agnico Eagle or Kirkland Lake. You can own the stocks or pay a MER and own them all here.