As the global leader in the gold-backed ETF market by AUM,1 State Street offers investors a relatively liquid, cost-effective way to access the asset class’s potential for long-term returns, diversification and downside mitigation. Built in partnership between the World Gold Council and the creator of the world’s first ETFs,2 State Street SPDR gold ETFs are setting the standard when it comes to investing in gold.3
Since partnering with the World Gold Council to launch the first US-listed gold exchange traded fund in 2004, State Street has democratized access to gold as an asset class.
We offer the largest4 and most frequently traded5 gold ETF globally. This leadership has translated to robust liquidity, low costs and tight trading spreads.
Learn how investors are using gold ETFs to seek to strengthen their portfolios by adding strategic long-term allocations and tactically capitalizing on market opportunities.
When the world’s preeminent gold experts wanted to transform how investors access the asset class, the World Gold Council turned to State Street, a pioneer in ETF investing. The remarkable demand for accessing gold this way is reflected in the fact that the ETF reached $1B in AUM in just three days after launching in 2004.
For nearly two decades, our partnership with the World Gold Council has been critical to raising awareness about the potential strategic benefits of gold as we have sought to deliver cost-effective, efficient exposure to the asset class.
Gold’s potential to preserve wealth during times of market distress is well known, but it also has the potential to do much more than that. In addition to its tactical uses, gold can serve a long-term strategic role in a core portfolio.
Investors seek the following benefits from strategic allocations to gold:
Gold has a 7.38% annual growth rate since August 1971, the day US President Richard Nixon effectively “closed the gold window."9
Gold has demonstrated a 0.00 and 0.08 monthly correlation to the S&P 500 Index and Bloomberg US Aggregate Bond Index, respectively, since the 1970s.10
The estimated global average daily turnover of gold is more than $130 billion, which is equivalent to $33 trillion per year.11
Protection from Market Downturns
During the last 15 market downturns, gold has provided a +5.8% return, while the S&P 500 Total Return Index declined -24.2%.12
SPDR gold ETFs are backed 100% by physical gold. Our ETFs are designed to provide the direct, secure and liquid exposure investors seek when investing in gold—without the costs and logistical concerns of owning bullion or the potential tracking error of investing in gold through other vehicles.
Whether an investor prioritizes a low expense ratio and low share price or enhanced liquidity and highly efficient trade execution, SPDR gold ETFs may provide the solutions investors need.
1 Bloomberg Finance, L.P., World Gold Council, and State Street Global Advisors; as of October 31, 2022.
2 ETFs managed by State Street Global Advisors have the oldest inception dates within the US, Hong Kong, Australia, and Singapore. State Street Global Advisors launched the first ETF in the US on January 22, 1993; launched the first ETF in Hong Kong on November 11, 1999; launched the first ETF in Australia on August 24, 2001; and launched the first ETF in Singapore on April 11, 2002.
3 State Street Global advisors is the global leader in the gold-backed ETF market by AUM. Bloomberg Finance, L.P., World Gold Council, and State Street Global Advisors; as of October 31, 2022.
4 Bloomberg Financial, L.P. and State Street Global Advisors; as of October 31, 2022.
5 Bloomberg Financial, L.P. and State Street Global Advisors; measuring by nominal value; as of October 31, 2022.
6 Bloomberg Finance, L.P., World Gold Council, and State Street Global Advisors; as of October 31, 2022.
7 Average daily percent (%) bid-ask spread since inception of GLD on November 18, 2004.
8 GLD’s option market is 337 times greater than that of next largest competitor based on notional open interest; Bloomberg Finance, L.P., State Street Global Advisors, as of October 31, 2022.
9 Bloomberg Financial, L.P., and State Street Global Advisors, as of October 31, 2022. Gold returns are measured by the LBMA Gold Price PM (USD/oz).
10 Bloomberg Finance, L.P., and State Street Global Advisors; S&P 500 correlation is from 8/31/1971 to 10/31/2022 and Bloomberg US Aggregate Bond Index correlation is from 3/31/1976 to 10/31/2022 due to data availability. Source: Bloomberg Finance, L.P. and State Street Global Advisors. The correlation coefficient measures the strength and direction of a linear relationship between two variables. It measures the degree to which the deviations of one variable from its mean are related to those of a different variable from its respective mean with 0 being uncorrelated and 1 being perfectly correlated. Gold returns are measured by the LBMA Gold Price PM (USD/oz).
11 Estimates based on clearing statistics published by the LBMA, LBMA-i and non-LBMA-i OTC (estimates represent daily averages is US$ billion for Q3’2011), COMEX, SHFE, SGE, LME precious, Dubai Gold & Commodities Exchange, ICE Futures, US Metals, Borsa Istanbul, Bursa Malaysia, Moscow Exchange, and Tokyo Commodity Exchange. Date as of October 31, 2022. Gold returns are measured by the LBMA Gold Price PM (USD/oz).
12 Analysis of Gold’s Historical Performance in Market Downturns. Bloomberg Finance, L.P. and State Street Global Advisors, as of September 30, 2021. Notes: Market downturn is defined as a decrease in the S&P 500 of 15% or greater; 2008 Financial Crisis (06/05/08 – 03/09/09); Black Monday (08/25/87 – 12/04/87); 2002 Recession (03/19/02 – 07/23/02); Dot Com Bubble (09/29/00 – 04/04/01); Gulf War (07/16/90 – 10/11/90); LTCM & Asian Crisis (07/17/98 – 08/31/98);US Credit Downgrade (07/07/11 – 10/03/11); Subprime Meltdown (10/09/07 – 03/10/08); September 11th (08/24/01 – 09/21/01); Flash Crash (04/23/10 – 07/02/10); Trade War/Recession Fears (09/21/18 – 12/26/18); Iraq War (01/14/03 – 03/11/03); End of QE Era(11/03/15 – 02/11/16); Yuan Devaluation (07/20/15 – 08/25/15); COVID-19 Pandemic (2/19/20 – 3/23/20); Russian Invasion & Inflation Shock (1/1/22 – 6/17/22) Source: Bloomberg Financial L.P. and State Street Global Advisors, Date as of 10/31/2022. Gold returns are measured by the LBMA Gold Price PM (USD/oz).
Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent. Nothing on this web page constitutes investment advice and should not be relied upon as such.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Past performance is not a guarantee of future results.
Diversification does not ensure a profit or guarantee against loss.
Investing in commodities entails significant risk and is not appropriate for all investors.