Gold regained its shine in March after losing last month. This is especially true as the recent collapse of several U.S. banks led to worries about financial instability across the globe, thus raising the appeal for the yellow metal as a safe haven and a store of value.
Gold is on track to witness its best monthly performance since July 2020 and also set for a second consecutive quarterly gain. Investors can tap the rally with the best-performing gold ETFs of this month. iShares Gold Trust ( IAU Quick Quote IAU - Free Report) , Aberdeen Standard Physical Swiss Gold Shares ETF ( SGOL Quick Quote SGOL - Free Report) , VanEck Merk Gold Trust ( OUNZ Quick Quote OUNZ - Free Report) , iShares Gold Trust Micro ( IAUM Quick Quote IAUM - Free Report) and Perth Mint Physical Gold ETF ( AAAU Quick Quote AAAU - Free Report) gained nearly 8% each and have a Zacks ETF Rank #3 (Hold). Gold is often used as a means of preserving wealth during times of financial and political uncertainty. It usually does well when other asset classes struggle. In fact, the metal jumped above the 2,000 mark after the sudden collapse of two U.S. regional banks earlier this month, which led to speculation that the Fed might pause rates hike to avoid a wider fallout from the global banking system turmoil. Markets now see a 48.9% chance of the Fed standing pat on interest rates in May (read: ETF Winners & Losers from the Banking Crisis). Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding a non-yielding bullion. A slowdown in the pace of rate hikes will provide some support to the yellow metal. Additionally, weakness in U.S. dollar supported the rally in the gold price. The dollar is on track for a second consecutive quarterly loss, making bullion cheaper for overseas buyers. Here’s a detailed discussion on the five ETFs mentioned earlier: iShares Gold Trust ( IAU Quick Quote IAU - Free Report) iShares Gold Trust offers exposure to the day-to-day movement of the price of gold bullion. It is backed by physical gold under the custody of JP Morgan Chase Bank in London. iShares Gold Trust charges 25 bps in annual fees. It is liquid and popular, trading in average daily volumes of 5.4 million shares and has AUM of $28 billion. Aberdeen Standard Physical Swiss Gold Shares ETF ( SGOL Quick Quote SGOL - Free Report) Aberdeen Standard Physical Swiss Gold Shares ETF tracks the price of gold bullion. The Trust holds allocated physical gold bullion bars stored in secure vaults in Zurich, Switzerland and London, the United Kingdom. Aberdeen Standard Physical Swiss Gold Shares ETF has amassed $2.6 billion in its asset base and trades in a solid volume of 2.3 million shares per day. It charges 17 bps in annual fees per year (read: Can Gold ETFs Continue Their Winning Run?). VanEck Merk Gold Trust ( OUNZ Quick Quote OUNZ - Free Report) VanEck Merk Gold Trust seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange-traded product with the option to take physical delivery of gold if and when desired. It holds gold bullion in the form of allocated London Bars. VanEck Merk Gold Trust is the only gold ETF with a patented delivery process providing investors with the option to request delivery on any business day. The fund charges 25 bps in fees per year. VanEck Merk Gold Trust is relatively unpopular and an illiquid option compared to others in the space, with AUM of $686.4 million and an average daily volume of 2 million shares. iShares Gold Trust Micro ( IAUM Quick Quote IAUM - Free Report) iShares Gold Trust Micro offers exposure to the day-to-day movement of the price of gold bullion. It is the lowest-cost gold ETF on the market, having an expense ratio of 0.09%. iShares Gold Trust Micro has amassed $959.1 million in its asset base while trading in an average daily volume of 638,000 shares. Perth Mint Physical Gold ETF ( AAAU Quick Quote AAAU - Free Report) Goldman Sachs Physical Gold ETF offers investors an opportunity to gain exposure to gold without the complexities of gold delivery (read: 5 ETFs That Outperformed the Market Last Week). Goldman Sachs Physical Gold ETF has accumulated $496.4 million and trades in an average daily volume of 638,000 shares. It has 18 bps in annual fees.