3 Great Gold ETFs

Before the advent of ETFs the only way to invest in gold was to buy gold coins, bars or jewelry. Investors had to make sure they paid a fair price and store the gold safely. Today, there are several great ETFs that invest solely in gold. These ETFs allow investors to easily and quickly invest in gold without the need to purchase the physical commodity.

Spiders Gold Shares

The Spiders Gold Shares trade on the U.S. stock exchanges with the ticker GLD. This ETF invests in gold bullion and the price of the ETF moves in relationship to the price of gold. The Spiders Gold Trust is managed by State Street Global Advisors.

iShares Gold Trust

Like the Spiders Gold Shares, the iShares Gold Trust invests in physical gold bullion and the price of the ETF moves in relationship to the price of gold. This ETF trades with the ticker IAU on U.S. exchanges. The iShares Gold Trust is managed by iShares.

Powershares DB Gold Fund

The Powershares DB Gold Fund is a bit different than the Spiders and iShares ETFs. The Powershares Gold ETF does not invest in physical gold bullion. Instead, the ETF invests in gold futures contracts. Although the underlying investment is not physical gold, the ETF closely tracks the performance of gold. The Powershares DB Gold Fund is managed by Powershares and trades with the ticker symbol DGL.

If you are looking to add exposure to gold to your investment portfolio these three ETFs are great choices since they directly or indirectly invest solely in gold and the performance of the ETFs closely mimic the performance of gold. Also, these ETFs are popular because of their liquidity and solid management. Like any other investment, you should do your own research before making an investment in these ETFs to make sure that they are right for your financial circumstances.