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Active Gold Portfolio Vs Gold ETF

The advisers at Emerald Financial Group have hand picked 10 gold stocks they believe present both growth and value opportunities. Find out more and download the fact sheet for this new portfolio by clicking here.

The first question many people when it comes to this kind of Portfolio is – why not just invest in an ETF like GDX (ASX: GDX)?

GDX will give you exposure to simply the largest gold stocks in the world. There is no analysis going into which of those stocks are likely to outperform and which are likely to underperform. You are therefore tracking the gold miners in general.

We believe that we have selected attractive stocks that have the potential to outperform the average large global gold miner. We also use active management in our portfolio, meaning that we have the potential to capitalise on attractive prices, sell underperforming assets, and take actions that could potentially lead to outperformance.

Given that we are invested purely in ASX-listed gold stocks, we also do not have the same multitude of global currency exposures that can potentially impact returns.

Western Australia, where the majority of Australia’s gold occurs, was also named the second most attractive mining area on earth by Canadian think tank the Fraser Institute.

Sam Green

Sam Green is the Portfolio Manager at Emerald Financial, whilst also being an Equities and Derivatives expert for his clients at TradersCircle.

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