However, investors should note that leveraged gold ETFs are not intended to track gold for long periods of time. Leverage is restored daily for these funds, which are not intended for long-term buying and holding strategies. Leveraged gold ETFs seek to provide investors with an extended daily or monthly return on gold prices. Funds use futures contracts to achieve their objectives and can be long or invested.
The level of increase is included in their descriptions and are usually 2x or 3x, or -2x or -3x. The GDXU seeks to offer 3 times the daily return of the index and the GDXD seeks to obtain 3 times the daily reverse return of the index. DB Gold's double-long ETN (DGP) (DGP) offers extended leverage twice the Deutsche Bank's broad liquid commodity index: optimally performing gold, making it a powerful tool for investors with a short-term upward outlook for gold and treasury bills futures. This is a list of all the leveraged gold ETFs listed in the US.
They are currently labelled in the ETF database. Consequently, an investor in GDXU and GDXD is exposed to these actions and is not directly exposed to the price of gold itself. The ProShares Ultra Gold (UGL) ETF seeks daily investment results, before fees and expenses, that correspond to twice (2 times) the daily return of Bloomberg Gold's SubindexSM. The table below includes the ESG scores and other descriptive information for all the leveraged gold ETFs listed in U.
The VelocityShares long gold ETN (UGLD) offers a leveraged exposure to gold futures, making it potentially useful for those who want to bet heavily on a short-term movement in the price of the precious metal. The current upturn in gold has been driven mainly by the Federal Reserve, which recently implied that interest rate cuts could occur next month, a situation usually unfavorable to the stock market; this has led investors to opt for gold and other safe havens. Investors who are optimistic about gold may want to consider investing in a precious metals ETF such as UGL, DGP or UGLD. Currently, the gold futures market is on track to rise 6.5% in the month of June after a movement of 1.6% in May.
ETFs are a simple way to play the gold market without going directly into the most volatile and dangerous futures market. The following table includes expense data and other descriptive information for all the leveraged gold ETFs listed in the U.