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).
Singapore: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501.
All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.
There can be no assurance that a liquid market will be maintained for ETF shares.
The prospectuses in respect of the offer of the units (the "Units") in the SPDR® Straits Times Index ETF, SPDR® S&P 500 ETF Trust and SPDR® Dow Jones Industrial Average ETF Trust (the "Funds") are available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSGA", Company Registration number: 200002719D). Investors should read the prospectus before deciding whether to acquire Units in any of the Funds. The value of Units and the income accruing to such Units may fall or rise. Units in the Funds are not obligations of, deposits in, or guaranteed by, SSGA or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Past performance figures are not necessarily indicative of future performance of the Funds. Investors have no right to request SSGA to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST") of NYSE Arca Inc. (“NYSE Arca”) or any of the other exchanges where the Funds are listed. Listing of the Units on the SGX-ST of the NYSE Arca or any other exchange does not guarantee a liquid market for the Units.
The prospectus in respect of the Singapore offer of the shares (the ‘Shares’) in the SPDR Gold Trust (the ‘Trust’) is available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSGA") (Co. Reg. No: 200002719D). The value of Shares in the Trust and the income accruing to the Shares, if any, may fall or rise. Investors should read the prospectus of the Trust before deciding whether to purchase Shares. Shares in the Trust are not obligations of, deposits in, or guaranteed by, World Gold Trust Services, LLC, SSGA or any of their affiliates. You may wish to seek advice from a financial adviser before making a commitment to purchase Shares. In the event that you choose not to seek advice from a financial adviser, you should consider whether the Trust is suitable for you. Investors have no right to request the Sponsor to redeem their Shares while the Shares are listed. It is intended that holders of Shares may only deal in their Shares through trading on the SGX-ST. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
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.
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.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation's financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.