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
Leadership That Drives Liquidity
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.
in gold ETF assets, representing one-third of the global total
average bid-ask spread of our largest gold ETF 7
deepest and most liquid gold ETF options market 8
Explore Gold ETF Investing
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.
A Strategic, Long-Term Asset
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 7.68% annual growth rate since August 1971, the day US President Richard Nixon effectively “closed the gold window."9
Gold has demonstrated a -0.01 and 0.08 monthly correlation to the S&P 500 Index and Bloomberg Barclays US Aggregate Bond Index, respectively, since the 1970s.10
The estimated global average daily turnover of gold is more than $158 billion, which is equivalent to $40 trillion per year.11
Protection from Market Downturns
During the last 15 market downturns, gold has provided a +6.0% return, while the S&P 500 Total Return Index declined -22.0%.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 September 30, 2021. 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 September 30, 2021. 4 Bloomberg Financial, L.P. and State Street Global Advisors; as of September 30, 2021. 5 Bloomberg Financial, L.P. and State Street Global Advisors; measuring by nominal value; as of September 30, 2021. 6 Bloomberg Finance, L.P., World Gold Council, and State Street Global Advisors; as of September 30, 2021. 7 Average daily percent (%) bid-ask spread since inception of GLD on November 18, 2004. 8 GLD’s option market is 158 times greater than that of next largest competitor based on notional open interest; Bloomberg Finance, L.P., State Street Global Advisors, as of September 30, 2021. 9 Bloomberg Financial, L.P., and State Street Global Advisors, as of September 30, 2021. 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 9/30/2021 and Bloomberg Barclays US Aggregate Bond Index correlation is from 3/31/1976 to 9/30/2021 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 September 30, 2021. 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); Source: Bloomberg Financial L.P. and State Street Global Advisors, Date as of 9/30/2021. Gold returns are measured by the LBMA Gold Price PM (USD/oz).
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