Q: Why is XGD down 14% while ishares global gold hedged EFT up 4.4%?
Also physical gold is up 6.4% over the year. (percentages taken from google finance).
Also physical gold is up 6.4% over the year. (percentages taken from google finance).
5i Research Answer:
XGD provides exposure to gold mining stocks, including NEM, ABX, AEM, etc., whereas CGL (hedged) provides exposure to the price of gold. The difference between CGL and the spot price of physical gold is largely due to ETF fees, its hedge to the Canadian dollar, and slight imperfection in tracking to the spot price of gold (derivative products required for exposure, etc.).