Gold ETFs are gaining momentum as lower yields, strong central bank demand and renewed ETF inflows bolster the precious metal's outlook.
Gold's 2025 monster run looks like a distant memory. The SPDR Gold Shares (NYSEARCA:GLD) is down 5.59% year-to-date through August 4, and holders are paying 0.40% per year to sit on bullion that pays them nothing.
David Einhorn's Greenlight Capital trimmed its stake in the SPDR Gold Trust (NYSEARCA:GLD) to 99,611 shares in the first quarter of 2026, while Daniel Loeb's Third Point opened a brand-new position of 95,000 shares in the very same quarter, both disclosures landing in 13Fs filed roughly 45 days after quarter-end.
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The Trust is a specialized investment vehicle that focuses on gold. Its operations revolve around holding gold bars, engaging in transactions involving issuing and redeeming Baskets, which are collections of Shares that reflect the current market value of the gold held. The primary goal of the Trust is to offer investors the opportunity to participate in the gold market through an investment in the Shares. These Shares are designed to track the price of gold bullion, deducting only the Trust's operational expenses. This structure aims to simplify the process for investors to invest in gold, providing a potentially cost-effective alternative to purchasing, storing, and insuring physical gold bullion directly. The Trust's strategy and operations cater to investors looking for exposure to gold prices without the complexities associated with direct gold ownership.
Baskets consist of Shares that represent a stake in the Trust's gold holdings. These Baskets are issued in exchange for deposits of gold and can be redeemed for gold at the discretion of the investor. This service caters to larger investors or institutional players, providing a liquid means to invest in and divest from gold holdings.
Shares are the primary investment vehicle offered by the Trust. Designed to reflect the performance of gold bullion prices less the Trust's expenses, Shares offer individual and institutional investors a cost-effective and efficient method to gain exposure to gold. These Shares are publicly traded, allowing for easy access and liquidity for investors of all sizes.