Since either the currency gain or loss of the FX basket determines if there will be additional gold moving into GLDW, it is important to look at the Euro, which makes up the largest portion of the FX basket. Since the beginning of 2014, the Euro has gone pretty much straight down, which is good for the dollar, and thus good for GLDW. With the United States in a rate hike cycle and the ECB still in easing mode, the Euro at least for the foreseeable future should continue to drift towards parity. FX Basket Weights Swiss franc (USD/CHF) (3.6%) GLDW Vs. GLD/IAU Comparison GLDW was just launched on January 30th, and because of that, it still has low volume and I suspect that will improve given the current strong dollar environment. If someone owned GLD and UUP, the combined expense ratios would be 1.20%, and 1.05% if someone owned IAU and UUP. GLDW investors can get the same strong dollar hedge at over half the cost at only 0.50%. GLDW Expense Ratio: 0.50% UUP Expense Ratio: 0.80% Index Performance Vs. Gold In the GLDW prospectus, there is an important chart that shows how the underlying index of GLDW has performed against gold since the beginning of 2007. As you can see, for the most part GLDW tracked the price of gold closely until gold spiked in 2011 and gold outperformed.
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