New SPDR Survey Shows Investors in Gold and Gold ETFs Likely
to Increase Their Investments in Next 12 Months
- Gold investors say the benefits of owning the precious metal
are maintaining/increasing value in an economic downturn (68%),
diversification (67%), and a hedge against inflation (67%).
- 73% of gold ETF investors say their exposure improved portfolio
performance.
- Millennials have a higher percentage of gold in their
investment portfolio than Gen X and Boomers.
- 80% of all investors believe gold will always have monetary
value, but only 41% say they understand what influences its
price.
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), has marked the 5th
anniversary of its SPDR Gold MiniShares® Trust (GLDM®). Launched on
June 25, 2018, GLDM is the leader among low-cost gold ETFs in the
market with more than $6.2 billion in assets.1 Since its launch
GLDM has grown to be the third largest gold ETF in the US.2
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A majority of investors familiar with
gold ETFs agree they are an investor-friendly product. (Photo:
Business Wire)
“At just 10 basis points, GLDM has proven to be a great low-cost
choice for long-term buy and hold investors seeking access to the
benefits of gold,” said George Milling-Stanley, Chief Gold
Strategist at State Street Global Advisors. “The launch of the
world’s first gold ETF, SPDR® Gold Shares (GLD®), nearly two
decades ago broke many perceived barriers to investing in gold. It
paved the way for GLDM’s introduction as a cost-effective option
that further democratized investing in gold, which has increasingly
become a core holding for retail investors looking to build
diversified portfolios.”
Gold Holds Its Value in Investors’ Eyes: Allocations Expected
to Rise in Next Year
To mark the 5th anniversary of GLDM, State Street Global
Advisors released the results of its Gold ETF Impact Study, which
was designed to better understand investor attitudes and behaviors
around investing in gold. According to the research, 20% of U.S.
investors currently have gold in their portfolios. Among these
investors, the average gold allocation is 14% of portfolio assets
and nearly half (47%) hold gold ETFs.
“With recession risk still looming, the allure of gold as an
investment in today’s market environment continues to be very
strong,” said Milling-Stanley. “Year-to-date, SPDR gold ETFs have
attracted over $2 billion of inflows, which is a testament to the
unique attributes of the asset class and the accessibility,
transparency, and cost effectiveness of the ETF wrapper.” 3
According to the study, among investors who invest in gold, more
than half are likely to increase their investment in the next 6-12
months, with the percentage of investors in gold ETFs (57%)
slightly outweighing investors who may also hold other types of
gold assets (e.g. bars and coins, gold mining stocks, commodity
funds etc.) at 53%.
Millennials Have Bigger Appetite for Gold Than Generation X
or Boomers, Despite Education Woes
Notably, Millennials have a bigger appetite for gold than
Generation X or Boomers. On average, Millennials (17%) have a
higher percentage of gold in their investment portfolio than Gen X
and Boomers (10% each).
More Millennials than Gen X and Boomers agree that gold ETFs are
the best way to invest in gold (69% versus 35% and 55%
respectively).
The survey also revealed that 80% of all investors believe gold
will always have monetary value but only 41% say they understand
what influences its price. Comparatively, of investors with gold in
their portfolios, the majority (75%) say they understand the
variables impacting its price.
“Our Gold ETF Impact Survey indicates there is still significant
room for more investor education about the benefits of gold and the
role it can play in a portfolio,” said Milling-Stanley. “As the
entire gold industry continues to improve the education around how
to invest in gold and the portfolio benefits it can provide, we
expect to see growth in gold investment demand.”
What’s Attracting Investors to Gold ETFs?
As for perceptions about gold’s impact on investment
performance, nearly nine in ten gold investors (88%) feel gold is a
long-term, strategic investment.
Furthermore, approximately three in four gold ETF investors
(73%) say the holding improved the performance of their investment
portfolio, with three-fourths saying ETFs are a more cost effective
way to invest in gold.
Gold investors who participated in the study felt that the
primary benefits of owning the precious metal are its potential to
maintain/increase in value during an economic downturn (68%),
diversification (67%), and its role as a hedge against inflation
(67%).
For investors familiar with gold ETFs, 60% believe gold ETFs are
the best way to invest in the commodity. The three key perceived
benefits of gold ETFs that rise to the top are:
- Convenience (90%)
- Ability to gain from price fluctuations without having to
buy/sell physical gold (89%)
- Gold ETFs are an investor-friendly product (85%)
“Our study found that investors holding gold ETFs are more
likely to be optimistic about their financial future (83%) than
those who do not (73%),” said Milling-Stanley. “Gold ETFs have
proven to be resilient during times of market turbulence. We expect
the three Rs of rates, recession and risk to be key drivers for
gold prices and investor demand this year.”
For more on SPDR’s forecast for gold, read our 2023 Midyear Gold
Outlook.
About State Street Global Advisors Gold ETF Impact Survey,
March – April 2023
State Street Global Advisors, in partnership with A2Bplanning
and Prodege, conducted an online survey among individual investors
in the US. Data was collected from March 24 to April 19, 2023 from
a nationally representative sample of 1,000 adults ages 25+ who
have investable assets of $250,000 or more.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. The funds provide
investors with the flexibility to select investments that are
aligned to their investment strategy. For more information, visit
www.ssga.com.
About State Street Global Advisors
For four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of index and
active strategies to create cost-effective solutions. And, as
pioneers in index, ETF, and ESG investing, we are always inventing
new ways to invest. As a result, we have become the world’s
fourth-largest asset manager* with US $3.62 trillion† under our
care.
*Pensions & Investments Research Center, as of 12/31/21.
†This figure is presented as of March 31, 2023 and includes
approximately $65.03 billion USD of assets with respect to SPDR
products for which State Street Global Advisors Funds Distributors,
LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated. Please note all AUM is
unaudited.
1 Bloomberg Financial L.P. & State Street Global Advisors,
data as of June 22, 2023.
2 Source: Bloomberg Financial L.P. & State Street Global
Advisors, data as of May 31, 2023. Note: Third largest is measured
by total assets under management for US listed gold-backed.
3 Bloomberg Financial L.P. & State Street Global Advisors,
data as of May 31, 2023.
Important Risk Disclosures
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Past performance is not a reliable indicator of future
performance.
Diversification does not ensure a profit or guarantee against
loss.
The views expressed in this material are the views of State
Street SPDR through the period ended June 26, 2023 and are subject
to change based on market and other conditions. This document
contains certain statements that may be deemed forward-looking
statements. Please note that any such statements are not guarantees
of any future performance and actual results or developments may
differ materially from those projected.
The trademarks and service marks referenced herein are the
property of their respective owners. Third party data providers
make no warranties or representations of any kind relating to the
accuracy, completeness or timeliness of the data and have no
liability for damages of any kind relating to the use of such
data.
Investing involves risk including the risk of loss of
principal.
This communication is not intended to be an investment
recommendation or investment advice and should not be relied upon
as such.
Investing involves risk, and you could lose money on an
investment in each of SPDR® Gold Shares Trust (“GLD®” or “GLD”) and
SPDR® Gold MiniShares® Trust (“GLDM®” or “GLDM”), a series of the
World Gold Trust (together, the “Funds”).
Commodities and commodity-index linked securities may be
affected by changes in overall market movements, changes in
interest rates, and other factors such as weather, disease,
embargoes, or political and regulatory developments, as well as
trading activity of speculators and arbitrageurs in the underlying
commodities.
Investing in commodities entails significant risk and is not
appropriate for all investors.
Important Information Relating to GLD® and GLDM®:
GLD and the World Gold Trust have each filed a registration
statement (including a prospectus) with the Securities and Exchange
Commission (“SEC”) for GLD and GLDM, respectively. Before you
invest, you should read the prospectus in the registration
statement and other documents each Fund has filed with the SEC for
more complete information about each Fund and these offerings.
Please see each Fund’s prospectus for a detailed discussion of the
risks of investing in each Fund’s shares. The GLD prospectus is
available by clicking here, and the GLDM prospectus
is available by clicking here. You may get these
documents for free by visiting EDGAR on the SEC website at
sec.gov or by visiting spdrgoldshares.com.
Alternatively, the Funds or any authorized participant will arrange
to send you the prospectus if you request it by calling
866.320.4053.
None of the Funds is an investment company registered under the
Investment Company Act of 1940 (the “1940 Act”). As a result,
shareholders of each Fund do not have the protections associated
with ownership of shares in an investment company registered under
the 1940 Act. GLD and GLDM are not subject to regulation under the
Commodity Exchange Act of 1936 (the “CEA”). As a result,
shareholders of each of GLD and GLDM do not have the protections
afforded by the CEA.
Shares of each Fund trade like stocks, are subject to investment
risk and will fluctuate in market value.
The values of GLD shares and GLDM shares relate directly to the
value of the gold held by each Fund (less its expenses),
respectively. Fluctuations in the price of gold could materially
and adversely affect an investment in the shares. The price
received upon the sale of the shares, which trade at market price,
may be more or less than the value of the gold represented by
them.
None of the Funds generate any income, and as each Fund
regularly sells gold to pay for its ongoing expenses, the amount of
gold represented by each Fund share will decline over time to that
extent.
The World Gold Council name and logo are a registered trademark
and used with the permission of the World Gold Council pursuant to
a license agreement. The World Gold Council is not responsible for
the content of, and is not liable for the use of or reliance on,
this material. World Gold Council is an affiliate of the Sponsor of
each of GLD and GLDM.
MiniShares® is a registered trademark of WGC USA Asset
Management Company, LLC used with the permission of WGC USA Asset
Management Company, LLC. GLD® and GLDM® are registered trademarks
of World Gold Trust Services, LLC used with the permission of World
Gold Trust Services, LLC.
For more information, please contact the Marketing Agent for
GLD and GLDM: State Street Global Advisors Funds Distributors, LLC,
One Iron Street, Boston, MA, 02210; T: +1 866 320 4053
spdrgoldshares.com
Intellectual Property Information: The S&P 500® Index
is a product of S&P Dow Jones Indices LLC or its affiliates
(“S&P DJI”) and have been licensed for use by State Street
Global Advisors. S&P®, SPDR®, S&P 500®, US 500 and the 500
are trademarks of Standard & Poor’s Financial Services LLC
(“S&P”); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC (“Dow Jones”) and has been licensed for use
by S&P Dow Jones Indices; and these trademarks have been
licensed for use by S&P DJI and sublicensed for certain
purposes by State Street Global Advisors. The fund is not
sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones,
S&P, their respective affiliates, and none of such parties make
any representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors,
omissions, or interruptions of these indices.
Before investing, consider the funds’ investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-787-2257 or visit ssga.com. Read it carefully.
Not FDIC Insured · No Bank Guarantee · May Lose Value
Distributor:
State Street Global Advisors Funds Distributors, LLC, member
FINRA, SIPC, an indirect wholly owned subsidiary of State Street
Corporation. References to State Street may include State Street
Corporation and its affiliates. Certain State Street affiliates
provide services and receive fees from the SPDR ETFs.
© 2023 State Street Corporation.
All Rights Reserved.
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Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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