North American markets shook off turbulence in late February and early March after Russia’s invasion of Ukraine. This sparked chaos in the global energy sector. That said, many experts and analysts are still anticipating volatility, as central banks press forward with their rate-tightening policy. This uncertainty has sparked a run to safe havens like gold and silver. Meanwhile, cryptocurrencies have faltered in the face of these pressures. Today, I want to look at three gold and silver exchange-traded funds (ETF) that offers solid exposure to this space in late April. Let’s jump in.
This gold-focused ETF offers broad exposure to the sector
The spot price of gold was trading just below the US$1,950/ounce at the time of this writing. Back in March, there were hopes that Russia and Ukraine may come to the table and broker a legitimate peace. Unfortunately, the war has only intensified in the weeks that have followed. A peace deal appears remote at this stage. Meanwhile, surging inflation and looming rate hikes are also driving investments into safe havens.
Canadian investors who are hungry for exposure to this space may want to consider iShares S&P/TSX Global Gold ETF (TSX: XGD). Shares of this ETF have climbed 26% in 2022 as of close on April 19. It was up 14% in the year-over-year period.
This ETF targets global securities of producers of gold and related products. Some of the top holdings in this account include familiar gold producers like Newmont, Barrick Gold, and Franco Nevada.
Investors on the hunt for silver stocks should look to this fund
Silver prices more than doubled from March 2020 into the summer of that same year. However, the lesser of the top precious metals failed to threaten its previous record highs. That said, it may still have a lot of room to run in this environment.
Investors who are looking to get in on silver may want to snatch up Horizons Silver ETF (TSX: HUZ). This fund seeks to correspond to the performance of the Solactive Silver Front Month MD Rolling Futures Index ER. Its shares have increased 8.6% so far in 2022. Investors will have to pay a relatively high MER of 0.78% to hold onto this silver-focused ETF.
One more top gold ETF to snatch up today
I’d checked in on the spot price of the yellow metal per ounce at the top of this piece. Some investors may want to avoid tracking the performance of gold equities. iShares Gold Bullion ETF (TSX: CGL) offers Canadians the opportunity to track the core price of gold bullion. On its fund facts, the fund states that it targets the price of gold that is hedged to the Canadian dollar. It boasts its usefulness as a hedge against inflation.
This ETF has jumped 7.5% in the year-to-date period. It offers a standard MER of 0.55%. Investors who want to avoid the frills and simply track the price of gold bullion may want to consider holding this ETF in this uncertain market climate.
