Gold is a unique commodity. It is a physical asset that is accumulated rather than consumed. As it is practically indestructible, virtually all the gold that has ever been mined still exists today.
Why consider gold?
During periods of uncertainty and crisis, gold has often been used by investors as a ‘safe haven’ asset.
It has traditionally been viewed as a store of value due to its restricted supply, which increases at a very slow rate, in contrast to paper money, for example, which governments are able to issue at will.
Because of this, gold tends to maintain or increase its purchasing power over time, and has therefore been used to protect against the risk of inflation.
Gold historically has also shown low correlation to shares, fixed income, and most other commodities, so an allocation to gold can be a good diversifier as part of a broader investment portfolio.
Access the gold market with BetaShares
Whether you have an interest in gaining exposure to the performance of physical gold bullion or to global gold mining companies, we have an exchange traded fund (ETF) that may suit your needs.
BetaShares Gold Bullion ETF (currency hedged)
ASX Code: QAU
Management Cost: 0.59% p.a
QAU is an ETF that aims to track the performance of gold bullion (before fees and expenses).
Backed by physical gold bullion, QAU offers a convenient way to gain exposure to the performance of gold, without the inconvenience and costs of directly purchasing, storing and insuring physical gold bullion.
QAU is hedged to the Australian dollar, substantially eliminating the impact of currency fluctuations between the USD and AUD on investment returns.
BetaShares Global Gold Miners ETF (currency hedged)
ASX Code: MNRS
Management Cost: 0.57% p.a
MNRS is an ETF which gives Australian investors exposure to a portfolio of the largest gold mining companies from around the world, enabling investors to diversify beyond the relatively small Australian gold mining sector.
Like QAU, BetaShares Global Gold Miners ETF is currency hedged, substantially eliminating the effects of currency fluctuations on Australian investors’ returns.
How to invest in BetaShares Gold ETFs
QAU and MNRS can be bought or sold on the ASX just like any share, through an online brokerage account or by speaking with your financial adviser.