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Alternatives to popular ETFs suggested by Matt Hougan of IndexUniverse: IAU is liquid and half...

Alternatives to popular ETFs suggested by Matt Hougan of IndexUniverse: IAU is liquid and half the cost of GLD, IYF gives broader exposure to the banking sector than large-cap focused XLF, HYG holds slightly higher-rated paper than JNK, HDV focuses on higher yielders than DVY, and VB avoids IWM's rebalancing issue.
Comments (3)
  • EMS
    , contributor
    Comments (566) | Send Message
     
    IAU is not as liquid as GLD. Look at the option volumes.
    13 Jun 2012, 10:19 PM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    While IAU is strictly superior, the difference in cost is not enough to outweigh the transaction costs of selling GLD and buying IAU for small positions. We are talking, after all, about 0.15% per year, so if you have less than about 7 ounces worth, it's a loser. And if you have a large position, there's no reason to own the ETF at all (though we know some do); just buy the Comex bars. My move from GLD to IAU will have to wait for my next annual "exchange for physical". I suspect many small-scale owners are in the same situation; there's likely to be some lag between such a price cut and broader adoption of the cheaper alternative. If IAU were to refund my trading cost, I'd switch today.
    14 Jun 2012, 12:37 AM Reply Like
  • remurraymd
    , contributor
    Comments (2287) | Send Message
     
    Back test (NEM) X 5years v all the above 3% dividend yield it CRUSHES them ingrowth perfect safe haven/inflation hedge for our folios. (GLD)(PHYS) also works well massively outperforming (HYG) (JNK) over time but no dividends.
    14 Jun 2012, 06:13 AM Reply Like
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