iShares S&P/TSX Global Gold Index ETF (XGD.TO)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In this current economic environment, 5i is comfortable with a 5%-10% gold position. Gold stocks will provide more upside potential, although bullion funds provide more insurance. Unlock Premium - Try 5i Free

He owns IAU instead. Gold itself, not gold miners. He buys gold as a diversifier opposite his equity, so he doesn't want more exposure to equities.

The large gold companies in Canada. Contrast to ZGD, which is BMO's equal weight gold global producers. Gold exposure is important to buffer inflationary shocks. Most portfolios are underexposed to asset classes that can provide returns when inflation starts.

Allan Tong’s Discover Picks Lastly, as I write, the price of gold is hitting new all-time highs. For those late to join the gold party and don’t know whether to buy Newmont, Barrick, Kirkland Lake or Franco-Nevada, this ETF includes all of them and then some. XGD charges a 0.55% MER. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.

XGD vs. HUG and the impact of the November election XGD is the granddaddy of gold ETF wth top holdings being Newmont, Barrick and FNV, totalling 40%. Given this weighting, he prefers HEP. HUG holds the actual gold. He doesn't know how the US election will effect gold stocks, which is why people buy gold--a reaction to uncertainty.

HEP-T vs. XGD-T. HEP-T has a covered call overly to the gold stocks and generates extra yield. If you are bullish then you don’t want that covered call. If you are a yield seeker then it is a fine way to get exposure to gold.

He does not like this ETF. He would prefer to own the shares, not just holding derivatives. This can cause discounts to NAV at times. He would prefer to hold solid producers like FNV or ABX. If you want an ETF, he would pick HGGG.