US$79b pulled from biggest gold exchange-traded fundBusiness | 16 Sep 2020 10:12 am
The world’s largest gold exchange-traded fund has recorded withdrawals after a ferocious run.
Traders pulled cash from the US$79 billion SPDR Gold Shares for a third straight week, following eight consecutive months of inflows, according to data compiled by Bloomberg.
After luring almost US$20 billion this year, GLD still ranks second among ETFs and is up about 30 percent.
“With the price of gold recently flattening out after a stellar run through early August, traders likely viewed this as an opportune time for some profit-taking,” said Nate Geraci, president of the ETF Store.
Despite the recent outflows for the giant ETF, its peer iShares Gold Trust (IAU) is still going strong -- with 25 weeks of inflows. The short-term market moves would have a greater impact on GLD since it’s used as a trading vehicle, while investors interested in buy-and-hold strategies usually turn to IAU because of its lower costs, Geraci said.