Total assets under management in gold ETFs held by Australian investors now stand at US$4.9 billion (A$7.5 billion), according to the World Gold Council. Despite the strong year-to-date inflows, May saw a pullback, with investors withdrawing $9.8 million—the first monthly outflow since November 2024.
Top Performers: VanEck and Betashares Gold Mining ETFs Outshine
The VanEck Gold Miners ETF emerged as the top-performing gold ETF within the Australian Core Strategies universe over the 12 months to 10 June, delivering a 50.6% return, according to data from FE fundinfo’s investment centre. The $806 million fund offers diversified exposure to global gold mining companies, with 43% of its holdings based in Canada and 16% in the United States.
Close behind was the Betashares Global Gold Miners Currency Hedged ETF, returning 49.9% over the same period. This ETF tracks an index of the largest non-Australian gold mining firms, with currency exposure hedged into Australian dollars to protect against FX volatility.
Both ETFs have benefited not only from the rising price of gold but also from increased investor appetite for defensive asset classes amid global economic uncertainty.
Advisers Lean Defensive Amid Uncertain Outlook
A recent study by Fidante found that financial advisers are increasingly shifting toward defensive allocations, favouring cash, fixed income, and commodities such as gold. The trend comes as macro risks, including geopolitical tensions and concerns over slowing global growth, persist.
World Gold Council: Stagflation Could Further Support Gold
Commentary from the World Gold Council noted that stagflationary environments have historically been favourable for gold. “Bonds suffer because inflation is higher, cyclical commodities suffer because growth is lower, and equities suffer as margins compress,” a spokesperson said.
“While historical outcomes vary, gold has typically outperformed relative to equities, bonds, and commodities during such periods. However, the case for gold does not rely solely on a stagflation scenario.”
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