BGLD Profile
BGLD
is an exchange-traded fund (ETF) managed by First Trust Advisors. The
ETF seeks to provide investors with exposure to the price of gold
while providing a level of downside protection through a buffer
strategy.
The ETF uses a structured investment strategy that
seeks to protect against the first 10% of losses in the price of gold
while still allowing for potential gains up to a cap. This means that
if the price of gold falls up to 10%, the ETF should absorb the losses
and protect the investor's capital. However, if the price of gold
falls more than 10%, the ETF will experience losses, but those losses
will be limited to the buffer amount.
As of September 2021, the
BGLD ETF had total net assets of around $630 million and was invested
in a diversified portfolio of gold-related instruments, such as gold
futures contracts and other gold-based derivatives.
In terms of
performance, BGLD has delivered solid returns since its inception in
July 2018, with an annualized return of around 10% as of September
2021. The ETF's buffer strategy has helped to limit losses during
market downturns, which may make it a suitable option for investors
seeking some downside protection while still participating in
potential gains in the price of gold.
Investors should keep in
mind that like all investments, BGLD carries risks, including the risk
that the ETF's buffer strategy may not perform as expected or that the
price of gold may experience significant losses. Additionally, the ETF
charges an expense ratio of 0.85%, which is higher than the average
expense ratio for ETFs that track the pri
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