Would you use a Vanguard gold ETF?

[Pointedstick]

The rumor mill says that Vanguard might start up a gold ETF soon: http://etfdailynews.com/2012/10/14/is-v ... he-market/

If they did, would anyone consider purchasing any?

[KevinW]

I'm skeptical since John Bogle and certain members of the Bogleheads forum are so vehemently opposed to gold investment.

That said, I'd definitely consider purchasing some. I'd need to wait to see the details of its policies and expenses.

I hold some IAU in a Vanguard account; I expect Vanguard's ETF would trade commission-free and have a comparable or better expense ratio. Institutional diversification is important so I'd advise against anyone having 100% of everything through Vanguard or any other company, but in my case that's already the case due to a big non-Vanguard employer plan.

[Xan]

Absolutely I would!

I have institutional diversification already.  For my account at Vanguard, I try to keep everything in the family.  If this ETF traded commission-free and had a comparable expense ratio, I'd be all over it.

[Xan]

I should clarify that my Vanguard account is an IRA, so the downsides are more limited than they would be in taxable.  For example, I could switch all my assets from IAU to the new thing without tax consequences, if I wanted.  Also, if the new fund folded and I were forced to sell, I wouldn't take a cap gains hit that I wasn't prepared for.  Those could be issues in taxable.

[Pointedstick]

I have the same feelings as Xan. Vanguard really rewards you for keeping all your holdings within their institutional umbrella. As long as you're diversified elsewhere, it shouldn't be too dangerous.

[Figuring It Out]

Yes, I would certainly consider it and I would appreciate it.

[dualstow]

I would. I regret that I never got in on their precious metals fund (now closed), and I would certainly welcome a pp-friendly, pure gold vehicle from Vanguard.

[Ad Orientem]

Probably not. Not because I don't like Vanguard. I think they are the best run fund family out there. But gold is the only part of the PP I feel strongly should not be held in a fund. It is the one component that not only protects against one of the four possible economic conditions, but it is also a form of disaster insurance.

That said, if I ever was ever tempted to go to a gold ETF, a Vanguard bullion backed fund would certainly merit a hard look.

P.S. If this is true it might be an attempt to give Jack Bogle another heart attack.

[WildAboutHarry]

Not sure about this, but don't all Vanguard ETFs have a corresponding mutual fund?

[FarmerD]

I'm skeptical since John Bogle and certain members of the Bogleheads forum are so vehemently opposed to gold investment.

True though Vanguard also offers actively managed funds which no true Boglehead would agree with so I see nothing inconsistent with Vanguard offering a gold ETF.

I would be very interested in a Vanguard gold ETF provided there was a provision the gold under their supervision could not be loaned out.

[WildAboutHarry]

No.  Prominent example: EDV

EDV has an institutional share class mutual fund.

[WildAboutHarry]

The fund has a $5,000,000 minimum.

The "Institutional Plus" version has a $100,000,000 minimum.

Neither are on my short list.