The SPDR Gold ETF Has Been Good to Long-Term Investors. Here's Why.

Core Insights - The SPDR Gold ETF has transformed the gold market by allowing investors to gain indirect ownership of physical gold, disrupting traditional models reliant on coin dealers and precious metals experts [1] - Recently, the SPDR Gold ETF has seen significant performance, with a 73% increase over the past year and an average annual return of 39% over the last three years [2][3] - Despite its recent success, the SPDR Gold ETF has experienced periods of poor performance, including three years of losses between 2018 and 2022 [4] Performance Analysis - Over the past five years, the SPDR Gold ETF has returned approximately 24% annually, outperforming several strong stock indexes [3] - Since its inception in 2004, the fund has achieved average annual returns of 11.85%, slightly below gold's own return of 12.3% per year, factoring in the ETF's expense ratio of 0.40% [5] - The ETF's performance has been inconsistent over longer periods, with historical boom and bust cycles in gold prices affecting returns [4] Expense Structure - The SPDR Gold ETF collects fees through an expense ratio, which is charged to shareholders, impacting overall returns [6]