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There’s Still Merit in Gold Investing; Get Paid for it With This ETF

BY | ETF Database
5:53 am ET 10/07/26 | 31 VIEWS
In 2026, surging global bond yields — including here in the U.S. — are acting as significant headwinds to the gold investing thesis. But all things considered, the 3.74% year-to-date loss sported by the largest gold-backed ETF isn’t terrible.Owing to rampant spending by major global governments — which stokes inflation that’s hard to erase — some market observers believe there’s still an attractive long-term case for investing in the yellow metal. That indicates there’s opportunity with assets such as the NEOS Gold High Income ETF (IAUI ). In fact, IAU’s status as an income-generating ETF dedicated to bullion may be appealing to investors looking for alternatives to bond market income. It could also appeal to those who believe diversified commodity indices don’t offer enough bullion exposure. “Gold’s weighting within broad commodity indices can understate its importance as a strategic portfolio component. Index methodologies typically rely on futures-market liquidity and/or production-based measures, neither of which fully captures the structure of the gold market,” according to the World Gold Council. “Gold’s liquidity extends beyond futures markets through deep OTC and ETF trading, while its available supply extends beyond annual mine production through a large above-ground stock that can be recycled, resold and reallocated. As a result, broad commodity indices may assign gold a modest weight even though its market depth, available supply and strategic portfolio role are greater than those weights suggest.”IAUI Has Long-Term AppealFor some investors, particularly those new to the commodities complex, one of the sources of frustration with gold is that it is rightly positioned as a long-term asset class. However, like any other asset class, it experiences lulls. And unlike dividend stocks or bonds, gold doesn’t pay dividends or deliver interest income. With a 30-day SEC yield of 2.36%, the $647.3 million IAUI solves the gold/income issue. That potentially makes it easier for commodity investors to stay engaged with the precious metal over the long haul – something they should consider doing. “Investors have long considered gold a beneficial asset during periods of uncertainty. Yet, historically, gold has generated long-term positive returns in both good and bad economic times,” added the WGC. “And when compared to commodities, gold has outperformed not only broad-based indices but also most sub-indices over the past 3, 5, 10 and 20 years. In fact, a number of sub-indices and broad commodities have fallen over the past 20 year.” For more news, information, and analysis, visit the Tax Efficient Income Content Hub.

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