Bonds might have done well in the recent stock market sell-off but it's another safe haven asset really gathering momentum this year. The gold price hit an all-time high this month, with specialists pointing to contributing factors such as falling interest rates, a weakening dollar and escalating geopolitical tensions. With many of these factors looking unlikely to go away, some believe the price could push even higher.
From a funds perspective, it has been easy enough to bank some of these gains: the Invesco Physical Gold ETC (SGLD), which sits in our Top 50 ETFs list was sitting on a hefty 19.1 per cent gain for 2024 as of 19 August. Much as gold prices could conceivably come down, this seems an easy way to get involved, what with its low fees and good liquidity.
But what of the other options? Physical gold exchange traded funds (ETFs) might give you simple exposure to the gold price, but active funds in the space tend to act as a racier play on the commodities space. That's because they tend to buy shares in miners, meaning market sentiment and company idiosyncrasies can have a big bearing on performance, too.