Should I Hedge My Stock Portfolio With a Gold ETF?
If you look at most investors' portfolios, you'll typically see the bulk of their assets in stocks and stock-related mutual funds and ETFs. That makes sense, given how easy it is to invest in stocks and how important they are in producing growth for your portfolio. Although bonds and cash play vital roles in having a balanced portfolio, the current low-rate environment has pushed many investors to increase the amount of stocks they own.
Yet with unprecedented stock market volatility recently, many investors are looking for ways to protect themselves from a possible repeat performance of the coronavirus bear market in February and early March. Historically, gold has often acted as a safe haven investment during times of trouble. That has plenty of people asking whether they should invest in a gold ETF to try to help protect their stock portfolios from the full brunt of future losses. Below, we'll look at various types of gold ETFs and whether it makes sense to invest in them as a possible hedge.
Image source: Getty Images.
Source Fool.com
