On Wednesday, the U.S. Federal Reserve concluded its much anticipated two-day monetary policy meeting. At the end of the meeting, the Fed issued a statement. As expected, the Fed did not make any changes to the benchmark interest rates, which it had hiked for the first time in almost a decade in December last year. However, the central bank, surprisingly, adopted a dovish stance.
The Fed said that it now expects to hike interest rates, at the most, two times this year instead of earlier prediction of four rate hikes. The Fed’s dovish stance benefits risk assets as well as gold. Given the Fed’s stance, this might be a good time to consider ETFs that focus on gold. Here are two ETFs that take bullish bets on gold.
iShares S&P TSX Global Gold Index Fund (TSX: XGD)
The ETF seeks to provide long-term capital growth by replicating the performance of the S&P/TSX Global Gold Index through investments in the constituent issuers of such index. The ETF has returned almost 50% so far this year.
Horizon’s BetaPro COMEX Gold Bulllion Bull Plus ETF (TSX: HBU)
The ETF seeks daily investment results that correspond to two times (200%) the daily performance of the COMEX Gold Bullion Index. The ETF has returned more than 40% so far this year.
