The S&P/TSX Composite Index dropped 16 points on Monday, April 24. Meanwhile, top markets in the United States posted marginal gains and losses on the same trading day. Canadian business confidence has taken a hit in the current economic climate. Markets have started well in the spring of 2023, but there is reason for caution as we approach the critical month of May.
Today, I want to explore an exchange-traded fund (ETF) that offers exposure to the yellow metal. Gold was trading at US$2,000/ounce in the morning before North American markets opened on April 25. Indeed, gold looked to be left for dead as it dropped below the US$1,700/ounce mark in October 2022. Since then, it has staged an impressive rally that has brought it back above the significant US$2,000 price point.
iShares Gold Bullion ETF (TSX:CGL) is the fund I’d look to target for investors who want to track gold’s core performance in the spring of 2023 and beyond. This fund seeks to replicate the performance of the price of gold bullion, less fees and expenses. That targeted exposure is hedged against the Canadian dollar.
According to the fund facts, this ETF is considered a medium high risk. Meanwhile, it offers a middling MER of 0.55% to prospective buyers. Shares of this ETF have climbed 7.3% in 2023 as of close on April 24. The ETF is up 3.3% in the year-over-year period. This ETF is the second-best thing to holding physical gold bullion. Indeed, one could argue that it offers a flexibility that physical ownership does not.
