Last Friday GTU went down about 2.21% while IAU went down 5.59% (between Thursdays close and Friday's close). What's going on? I thought they tracked very closely
Norm
GTU vs. IAU
Moderator: Global Moderator
Re: GTU vs. IAU
GTU is a closed-end fund and it's been traded with premium for quite awhile due to high demand for non-US based gold, preferential tax treatment in taxable accounts and other reasons. CEFs and ETFs are quite different beasts so there's nothing unusual in seeing such behavior.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: GTU vs. IAU
GTU normally sells at a premium to net asset value, and this premium expands and contracts based upon market conditions.
Understanding the dynamics of this premium movement is the key to having a happy experience with GTU, IMHO.
Understanding the dynamics of this premium movement is the key to having a happy experience with GTU, IMHO.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
-
D
Re: GTU vs. IAU
Right now GTU is at ~10% premium. Sold today my position and got me some ETF.