How to invest in etfs

Why SPDR Gold Trust ETF (NYSE Arca: GLD) Belongs in Your Portfolio

GLD

Gold's late May decline to its lowest levels in four months could mean now is the time to buy shares in SPDR Gold Trust ETF (NYSE Arca: GLD). GLD is down more than 8% since mid-March to a discounted price of $120.65 a share.

That makes the ETF, whose shares have been sought by the likes of world-renowned hedge fund managers, a value buy right now.

Here’s how SPDR Gold Trust ETF operates – and how it fits into your portfolio today...

Why Gold Mutual Funds Are Attractive Investments

gold mutual funds

Gold mutual funds are gaining attention as a safe-haven investment to hedge against the market volatility 2014 has brought so far.

These types of investments are managed by professionals who analyze and monitor the movement of gold and invest accordingly in bullions and equities.

Here we examine one method for how to invest in gold, using gold mutual funds.

Plus we’ve highlighted a few to get you started today…

Investing In ETFs: How Exchange-Traded Funds Can Save You Money

High commissions and management fees, along with taxes, can really cut into your returns.

That's where exchange-traded funds, or ETFs, come in. In today's investment world, ETFs are cheaper and more tax-friendly than mutual funds.

The average expense ratio for U.S.-listed ETFs is 0.4%, compared with 1.42% for diversified U.S. stock funds.They also give you exposure to an entire industry or market with the click of a mouse.

It's one of the reasons why exchange-traded funds are quickly becoming the investment of choice for investors seeking broad market exposure.

In fact, the number of ETFs has surged over 10-fold in the last decade.

The total number of ETFs in the market grew to 1,114 by October 2011, with assets over $1 trillion, according to the Investment Company Institute.

And the ETF market will expand to roughly $3.1 trillion by 2016, according to projections from the Financial Research Corp. in Boston.

So if you're looking to diversify your portfolio and save money doing it, ETFs may be the way to go.

Here's a primer on how ETFs can work for you.

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