This Red-Hot ETF Is Up Around 45% This Year
The markets have been volatile this year but a key index, the S&P 500, still remains in negative territory. Investors have been pulling money out of the market this year as concerns are rising about whether a recession is upcoming due to tariffs and multiple trade wars involving the U.S., which could weigh on companies across all industries.
Many stocks are down big and are struggling badly. But one thing that’s doing well is gold. Gold has hit record highs this year as investors have been loading up on it in search of any safety. And one exchange-traded fund (ETF) that has benefitted from this gold rush is the iShares MSCI Global Gold Miners ETF (NASDAQ: RING). Since the start of the year, it has risen by around 45%. The fund holds gold mining stocks in its portfolio, which will do well when gold is rising in value as that can boost their sales and profits.
But there is risk that comes with mining stocks; they aren’t as safe as simply holding gold. And while they are doing well this year, that doesn’t necessarily mean you’re better off going with them than just the broader markets. Over the past five years, for example, the S&P 500 is still up more than 90% versus about 40% for the RING ETF.
As market conditions improve, investors may want to consider swapping out of the gold-focused fund. It can provide safety amid market turmoil but as long-term investment, the better option may still be the S&P 500.
