2-Star ETFs Poised to Plunge: SPDR Gold Shares?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR Gold Shares ETF (NYS: GLD) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SPDR Gold Shares and see what CAPS investors are saying about the ETF right now.

SPDR Gold Sharesfacts


November 2004

Total Net Assets

$68.9 billion

Investment Approach

Seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets.

Expense Ratio


1-Year / 3-Year / 5-Year Annualized Returns

(5.6%) / 20.6% / 19.6%


iShares Gold Trust
ETFS Physical Swiss Gold Shares
Market Vectors Gold Miners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 17% of the 688 All-Star members who have rated SPDR Gold Shares believe the ETF will underperform the S&P 500 going forward.

Just two months ago, one of those Fools, TMFDivine, tapped SPDR Gold Shares as a particularly speculative selection:

No reliable valuation method for seeing what gold is ever actually WORTH. If you don't know what you're paying for, the item in question is bought mostly for the purpose of being held, not used, and the price has skyrocketed over the past few years, you should probably sell. Unfortunately I think a lot of people will be hurting when the price of gold comes back down to earth.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 2-Star ETFs Poised to Plunge: SPDR Gold Shares? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.