 The
iShares Gold Trust (IAU) is an exchange-traded fund that seeks to
track the price of gold. The fund holds physical gold bullion as its
sole asset and is designed to provide investors with a cost-effective
and convenient way to invest in gold.
As of September 2021, the
net asset value of IAU was approximately $24 billion, with a low
expense ratio of 0.25%. The fund holds gold bullion in a secure vault,
with each share of the fund representing a fractional ownership
interest in the underlying gold. This provides investors with a way to
gain exposure to the price of gold without actually owning physical
gold.
IAU may be an attractive option for investors who are
looking for a hedge against inflation, currency devaluation, or market
volatility. Gold has historically been seen as a safe-haven asset and
a store of value, particularly during times of economic uncertainty.
However, it is important for investors to understand the risks
associated with investing in gold, which include the potential for
price fluctuations, geopolitical risk, and the possibility of changes
in government policies or regulations that may affect the gold market.
Overall, IAU may be a suitable investment for investors who are
looking for exposure to the price of gold and the potential benefits
it may provide to a well-diversified portfolio. However, it is
important for investors to conduct their own research and consider
their investment goals and risk tolerance before investing in the
fund.
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