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A newer company, Standard Life Aberdeen is a UK-based global investment company that is headquartered in Edinburgh, Scotland. The company merged with the investment company Aberdeen Asset Management in March 2017.
The company’s asset management arm operates under Aberdeen Standard Investments, which is the largest active asset manager in the UK, with investment in equities, multi-asset, fixed income, real estate and private markets.
I’ve mentioned how I wanted to get involved with investing in gold and one of the companies I do invest in is Aberdeen Standard Investments and their ETF, Aberdeen Standard Gold ETF Trust (NYSE Arca: SGOL).
Part of my reasoning to have gold in my portfolio is as a defensive play when the market goes bad. But as a longtime hold, my feeling is to have it during good and bad economic times is probably worth my time.
According to Aberdeen Standard, “Whether the headline news is bright or bleak, gold may have a valuable place in an investment portfolio. It’s a distinct asset that can potentially serve as a nontraditional diversifier. Gold may shine apart from other asset classes in times of volatility because it has a low correlation to both equities and fixed income. A strategic position in gold may help investors increase portfolio efficiency, enhance diversification profiles and be prepared for any market conditions — rain or shine”.
“Aberdeen Standard Physical Gold Shares ETF (“the Shares”) are issued by Aberdeen Standard Gold ETF Trust (“the Trust”). The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the expenses of the Trust’s operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in physical gold.”
source: schwab.com
The ETF was launched on September 9, 2009.
It is no doubt the lowest cost gold ETF, has an 0.17% expense ratio, physically backed with vaulted security in London, UK and Zurich, Switzerland.
As of May 2021, according to JP Morgan Chase Bank’s bar list, there is 1,650 total bars (total gross ounces of 657,153.438) at the JP Morgan Zurich Vault in Zurich, Switzerland and the JP Morgan London Vault in London, UK has 1,676 total bars (total gross ounces of 671,854.200).
In a letter from the Bureau Veritas dated February 26, 2021, Aberdeen Standard Investments ETFs Sponsor LLC (the “Client”) has engaged Inspectorate International Limited (“Inspectorate”) to conduct two inspections per year of the gold bullion held on behalf of Aberdeen Standard Gold ETF Trust at the vault of J.P. Morgan Chase N.A, London (the “Custodian”) and the vault at Malca Amit, Zurich.
This ETF, does not pay dividends but it’s range is around $16 to $18.07 and at the time, I bought it at $16.17 a share and is up 11.63% and as of today, it’s at $18.05.
But I noticed I had holdings in gold mining, ounces but not in gold bullion and this investment’s holdings are 100% in physical gold bullion. While the SPDR Gold Shares (GLD) is the biggest gold bullion ETF, GLD is currently at $176.04 and has GER of .40% but I felt the price of SGOL was attractive.
The Market Edge Ratings is long and at 80. While Zacks ETF Rank has it as a hold (3) and an ETF risk of Medium.
But I’ve read and seen numerous times that with rising inflation, it lowers the value of currency. And gold is a metal that is historically viewed as a hedge against inflation.
If anything, my reason for holding Aberdeen Standard Gold ETF Trust (NYSE Arca: SGOL) is primarily wanting to have gold in my portfolio, with a good performance and also an cost-effective pricepoint.
But as always, perform due diligence and do a lot of research before investing. Talk to a financial advisor and find out if Aberdeen Standard Gold ETF Trust (NYSE Arca: SGOL) is a perfect investment for you.
