5 Gold ETFs for Canadians

 

Exchange-traded funds (ETFs) provide an easy way to invest in gold and Canadians have several options for exposure to this precious metal. Here are 5 of the most popular Canadian gold ETFs along with a brief overview of each.

 

Horizons Gold ETF

Symbol: HUG
Investment Objective: “Horizons HUG seeks investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the performance of the Solactive Gold Front Month MD Rolling Futures Index ER.” (Horizons ETFs)
Management expense ratio (MER): 0.75% (This number represents the annual fee the ETF issuer charges to manage the fund, plus any taxes or other fees incurred in managing the fund.)
Exchange: Toronto Stock Exchange
Does the Fund Invest in Gold Bullion: No
Convertible to Physical Gold: No
Website: https://www.horizonsetfs.com/ETF/HUG

 

iShares Gold Bullion ETF

Symbol: CGL.C
Investment Objective: “The ETF seeks to replicate the performance of the price of physical gold bullion, less the ETF’s fees and expenses. The ETF is not actively managed. To achieve its objective, the ETF invests in long-term holdings of unencumbered gold bullion, in 100 or 400 troy ounce international bar sizes.” (BlackRock)
Management expense ratio (MER): 0.56%
Exchange: Toronto Stock Exchange
Does the Fund Invest in Gold Bullion: Yes, as per the fund’s prospectus: “The Bullion of each iShares Fund is stored on a segregated basis in the vaults of The Bank of Nova Scotia.”
Convertible to Physical Gold: No
Website: https://www.blackrock.com/ca/individual/en/products/241528/ishares-gold-bullion-etf

 

Purpose Gold Bullion Fund

Symbol: KILO
Investment Objective: “The Fund seeks to buy and hold substantially all of its assets in gold bullion and, incidental thereto, minor amounts of gold certificates, if any.” (Purpose Investments)
Management expense ratio (MER): 0.28%
Exchange: Toronto Stock Exchange
Does the Fund Invest in Gold Bullion: Yes, the custodian is Royal Canadian Mint
Convertible to Physical Gold: Yes, but subject to fees and a minimum redemption amount, as per the fund’s prospectus: “Redemption requests for a Monthly Redemption must be for physical gold bullion in amount equal to at least the equivalent in value to 1,000 grams international bar or an integral multiple thereof, plus applicable expenses.”
Website: https://www.purposeinvest.com/funds/purpose-gold-bullion-fund

 

Royal Canadian Mint – Canadian Gold Reserves

Note: The Royal Canadian Mint offering is an exchange-traded receipt (ETR), not an ETF, and as the Mint explains: “Each ETR will represent an undivided beneficial interest in gold bullion to be held in custody by the Mint. The gold bullion will be beneficially owned by the ETR Holders and not by the Mint.” As an ETR the Mint does not charge a management fee but instead a service fee for the storage of the gold.

Symbol: MNT
Investment Objective: “The Royal Canadian Mint established the Canadian Gold Reserves Program in order to provide an exchange-traded investment vehicle that tracks the price of gold and makes investing directly in physical gold available to institutional and retail investors.” (Royal Canadian Mint)
Service Fee: 0.35%
Exchange: Toronto Stock Exchange
Does the Fund Invest in Gold Bullion: Yes, as per the prospectus: “The Mint will act as custodian of the gold bullion on behalf of the ETR Holders and will hold the gold bullion in its facilities in Ottawa, Ontario. Beneficial ownership of the gold bullion will at all times remain with the ETR Holders.”
Convertible to Physical Gold: Yes, but subject to fees and a minimum redemption amount of 10,000 ETRs
Website: http://www.reserves.mint.ca/Tsx_Gold/

 

Sprott Physical Gold Trust

Symbol: PHYS.U
Investment Objective: “The goal of the Sprott Physical Gold Trust (the “Trust”) is to provide a secure, convenient and exchange-traded investment alternative for investors who want to hold physical gold without the inconvenience that is typical of a direct investment in physical gold bullion.” (Sprott Investments)
Management expense ratio (MER): 0.48%
Exchange: Toronto Stock Exchange
Does the Fund Invest in Gold Bullion: Yes, the custodian is The Royal Canadian Mint
Convertible to Physical Gold: Yes, but subject to fees and a minimum redemption amount, as per the fund’s prospectus: “Redemption requests must be for amounts that are at least equivalent to the value of one London Good Delivery bar or an integral multiple thereof, plus applicable expenses. A “London Good Delivery bar” weighs between 350 and 430 troy ounces (generally, most bars weigh between 390 and 410 troy ounces).”
Website: http://sprott.com/investment-strategies/physical-bullion-trusts/#

 

*This article is for informational purposes only and is not intended as investment advice.