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SGOL is a physically backed gold ETF structured as a grantor trust that aims to track the LBMA Gold Price PM, minus the trust’s operating expenses. It holds allocated gold bars in vaults (London or Zurich) with JPMorgan as custodian, and the trust structure is designed to minimize credit risk by not lending the gold.
You’re buying shares that represent real gold bars sitting in secure vaults, not a gold mining company or gold futures contracts. The share price is set up so it trades at about 1/100th of gold’s spot price, making smaller purchases easier.
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Concentrated single-asset exposure. Higher volatility.