Having a fully diversified portfolio means different things to different investors. I've always followed the traditional mindset that having a certain percentage of one’s portfolio invested in gold provides for a greater level of diversification.
This also provides some downside protection when markets turn sour. In this article, I'm going to discuss one Exchange Traded Fund (ETF) for investors looking to add gold exposure.
The VanEck Vectors Gold Miners ETF (TSX:GDX) is an ETF I've commented on in the past as one of my favorite ways investors can gain such gold exposure.
This ETF is a highly diversified option for investors who don't know where to start in terms of picking a specific company or group of companies in the gold mining sector. This ETF has a rock bottom fee and is a great option for passive and active investors alike, making this ETF a great choice for all investor types.
The reality with gold production is there is a high level of mine-specific risk with holding one or two companies. The COVID-19 pandemic has heightened these risks, and with geopolitical tensions high, choosing the wrong miner can result in the potential for missing out on a portion of the gold price rally we've seen of late.
I'd recommend investors looking for leverage to the price of gold to consider this ETF today.
Invest wisely, my friends.
