iShares Gold Trust micro-ETF (IAUM). This is because precious metals are often seen as “safe investments,” which investors flock to when uncertain times hit other markets. In particular, the gold bars included in the ETF’s asset base must come from refineries accredited by the London Bullion Market Association (LBMA). To be accredited, refineries must take measures to combat terrorist financing, money laundering, and human rights violations in addition to protecting the environment
In addition, the fund is a standard gold bar ETF with an annual expense ratio of 0.15%. Although the expense ratio has meant that the price of SPDR gold stocks has fallen slightly below the price of gold in the long term, the price can be worthwhile compared to alternatives. For example, many gold stocks have fared worse than the price of gold over the years due to mine development cost overruns, mismanagement, and excessive indebtedness. The Franklin Responsibly Sourced Gold ETF is another gold bar ETF, but it takes a slightly different approach when it comes to its market
This ETF differs from the usual ETF in that when Sprott ESG Approved Gold is founded, the fund is fully allocated and the gold is stored outside the financial system. The term “Sprott ESG Approved Gold” refers to gold that is physically indistinguishable from other gold, but that has been procured and produced in a manner that meets the ESG standards and criteria used by the sponsor (the “ESG Criteria”), which are intended to provide investors with a higher level of ESG verification, disclosure of the origin of the recovered metal and includes an assessment of mining companies and mines. In addition, they can also be significantly affected by political and economic conditions in gold-producing and consuming countries, as well as by gold production levels and production costs. For investors interested in adding an environmental, social and governance (ESG) component to their gold investments, the Sprott ESG Gold ETF (SESG) offers this feature and is the world’s first ETF to source and refine gold exclusively from recognized leading ESG
IAUM tracks the London Bullion Market Association (LBMA) gold prices and provides information on the daily price movements of gold bars.