Futu Research | ETF Investment Research
[Gold ETF] Gold Prices Soar: A Comprehensive Analysis of Gold ETF Investments in Hong Kong and U.S. Markets
Gold, widely recognized as a stabilizing force during global financial storms, has seen its safe-haven status grow increasingly prominent within the international financial system. Gold ETFs are exchange-traded funds that primarily track gold price movements. Investing in gold ETFs through Futu offers a more convenient and compliant way to allocate capital to gold. Futu provides a range of gold ETF options listed on both the Hong Kong and U.S. stock exchanges; compared with directly holding physical gold, these ETFs feature lower entry barriers and greater trading flexibility. The account-opening process takes just two steps and can be completed in as little as three minutes!
Why choose to invest in gold?
As a key component of the global financial market, the gold market possesses distinctive fundamental characteristics and functions—pricing, liquidity, risk management, and value preservation.
Looking back at history, gold prices have exhibited clear cyclical patterns. Since the 1970s, gold has undergone several significant swings, surging from a few hundred dollars per ounce to a historic peak of nearly $2,000 before settling into a range of high‑level volatility, driven by economic cycles, shifts in monetary policy, and geopolitical events. In particular, when global economic uncertainty intensifies or inflation expectations rise, gold—owing to its traditional safe‑haven status and its value as an inflation hedge—tends to attract investor demand, bolstering its price.
In the global landscape of investment and wealth management, gold serves as a unique "insurance piece." It occupies an indispensable position in asset allocation, acting as a shield that helps investors hedge against market volatility—particularly when conventional investments like stocks and bonds face uncertainty. By maintaining low correlations with these assets, gold can reduce overall portfolio risk.
At the same time, gold also serves as an effective hedge against inflation. In an era of low or even negative interest rates, people have come to realize that keeping money in the bank may not only yield no interest but could even lose purchasing power as prices rise. Under such circumstances, gold becomes especially valuable because its value remains relatively stable and it is not subject to the erosion of inflation, unlike paper currency.
Further reading:Introduction to Gold Investment
What is a gold ETF?
GoldETFBy holding physical gold or gold futures and other derivatives through a fund, investors can track gold‑related indices. Gold ETFs enable investors to participate in the gold market without directly owning gold, and thanks to their high transparency, strong liquidity, and ease of use, they have increasingly become a key vehicle for allocating gold assets.
Gold ETFs listed on the Hong Kong and U.S. stock markets closely track gold price movements, offering an efficient investment avenue in response to a complex economic environment and holding a significant position in the global financial markets. Below are several gold ETFs available on the U.S. and Hong Kong exchanges for your consideration:
U.S. stock gold ETF
1. $SPDR Gold ETF(GLD.US)$This is the world's largest gold ETF, offering investors the opportunity to track the spot price of gold.
2. $iShares Gold Trust(IAU.US)$: This is also a large gold ETF that tracks the market value of gold.
3. $VanEck Gold Miners Equity ETF(GDX.US)$This ETF invests in a range of gold mining companies worldwide, rather than directly investing in gold.
4. $VanEck Junior Gold Miners ETF(GDXJ.US)$: Similar to GDX, GDXJ invests in small- to mid-cap global gold mining companies.
Hong Kong-listed gold ETF
1. $SPDR Gold Trust(02840.HK)$: This is a gold ETF listed on the Hong Kong Exchange, a sister fund to the U.S.-listed GLD, designed to track the price of gold.
2. $Value Gold ETF(03081.HK)$: This is another gold ETF listed on the Hong Kong Exchange, which tracks gold prices in the London market.
How can you trade gold ETFs through Futu?
Before investing in (buying or selling) gold ETFs, you must first open a securities (stock) account—just as you need to open a bank account before depositing money.
Securities (Stock) Account Opening Procedure
Step 1: Go to the official Futubull website and register a new account.(Register Now)
Step 2: Open a securities account based on your Futu account.(Open an account now)
Step 3: Deposit funds and enter personal and financial details (includingBank code and account number), then deposit funds via eDDA instant deposit, FPS (Fast Payment System), or bank transfer.(Invest funds immediately)
How can you easily find all gold ETFs?
If you're interested in investing in gold ETFs, you can search for "gold ETF" in the search bar, or head to the ETF page, open the "Thematic ETFs" tab, and look for "gold ETFs" to identify high‑performing ETFs as a reference for your investment decisions.
What risks are associated with investing in gold ETFs?
Although gold ETFs offer investors a convenient and cost-effective way to gain exposure to the gold market, they also entail certain risks. Below are some of the risks you may encounter when investing in gold ETFs:
Price Volatility Risk: Gold prices are influenced by global economic conditions, interest rate changes, the U.S. dollar exchange rate, inflation expectations, geopolitical factors, and other variables, which may result in significant volatility and directly affect the net asset value of gold ETFs.
Tracking Error Risk: Gold ETFs typically aim to closely track the spot price of gold; however, due to management fees, transaction costs, and issues related to the delivery and custody of physical gold, their actual performance may deviate from the underlying gold price—this deviation is known as "tracking error."
Credit Risk: Although gold ETFs are securitized products backed by physical gold, any issues affecting the custodian bank or the issuing institution could jeopardize the interests of ETF investors.
Policy and Legal Risks: Changes in the laws and regulations of relevant countries and regions, such as adjustments to tax policies or shifts in regulatory requirements, may affect the investment value of gold ETFs.
Further Reading:Learn more about ETF investment strategies.
When investing in gold ETFs, investors should remain fully aware of and carefully assess the various risks involved. Gold price volatility is like the rolling waves of the sea; tracking error can be likened to an unruly horse; credit risk requires vigilance regarding changes in the custodian's reputation; and policy and regulatory adjustments are as unpredictable as shifting clouds, all of which can have a profound impact on investments. The uncertainty of market operations tests one's insight and decision‑making ability, while the cost of holding a position over the long term also constitutes a hidden risk. Therefore, before investing, it is essential to conduct a comprehensive analysis that takes into account your personal objectives, risk tolerance, and the broader macroeconomic environment, while continuously monitoring market developments and information. By managing overall risk in a systematic and prudent manner, you can ensure well‑informed, sound decisions.
