International Gold 3×4
International Gold 3×4 is a precious metal exchange-traded fund (ETF) that tracks the price of gold. The ETF is designed to provide investors with a convenient and cost-effective way to gain exposure to the gold market.
International Gold 3×4 is structured as a leveraged ETF, which means that it uses financial instruments to magnify the returns of the underlying asset. In this case, the ETF uses a leverage ratio of 3x, which means that it amplifies the daily returns of the gold market by a factor of three.
As a result of its leverage, International Gold 3×4 has the potential to deliver higher returns than a traditional gold ETF. However, it also comes with increased risk. The ETF’s value can fluctuate dramatically in response to changes in the gold market, and investors may experience significant losses if the price of gold falls.
Key Features
* Ticker Symbol: IAU
* Expense Ratio: 0.58%
* Leverage: 3x
* Underlying Asset: Gold
* Listing: NYSE Arca
Benefits
* Leveraged Exposure: Amplifies the returns of the gold market by a factor of three.
* Cost-Effective: Lower expense ratio than many other leveraged ETFs.
* Convenience: Provides investors with an easy way to gain exposure to gold.
Risks
* Volatility: The ETF’s value can fluctuate dramatically in response to changes in the gold market.
* Concentration: The ETF is heavily concentrated in gold, which can increase investment risk.
* Counterparty Risk: The ETF relies on a third-party to provide the leverage, which introduces counterparty risk.
Who Should Consider International Gold 3×4?
International Gold 3×4 is suitable for investors who are seeking leveraged exposure to the gold market. However, investors should be aware of the risks associated with leveraged ETFs and should invest only what they can afford to lose.
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