The Power of Gold: An Initial Look at Trading Strategies Using Gold-based ETFs and ETNs 2009-2014

The Power of Gold: An Initial Look at Trading Strategies Using Gold-based ETFs and ETNs 2009-2014

Author: zant worldpress

We examine the effectiveness of trading strategies that use exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that offer various types of exposure to gold returns. The strategies are based on the results of recent research that indicate gold is a safe haven when financial market risk increases. We make adjustments to a stock/bond/gold portfolio based upon signals provided by the VIX and examine the effectiveness and relative effectiveness of the gold-related vehicles to enhance return. We also examine the returns of the ETFs and ETNs on a stand-alone basis. Our findings show that improved portfolio performance could have been possible over the sample period 2009-2014 by increasing exposure to gold when the VIX rises above a certain threshold and reducing exposure to gold when the VIX declines. The best results are from using an ETF that provides a simple one-to-one, i.e., unlevered, positive exposure gold, and the results support the hypothesis that gold is a safe haven. The other choices of financial vehicles that offer a levered and/or inverse relationship to gold are found to be less effective or to offer no benefits in the strategies we employ here.

JEL Codes: G1, G02 and G11

Total Reviews: 0

Price:$9.99

Delivery System

After completion purchase and payment you will get an email with download link of book. You can download this book within 24 hours. Be remember you can't download this book after 24 hours.

Reviews

There are no reviews yet.

Be the first to review “The Power of Gold: An Initial Look at Trading Strategies Using Gold-based ETFs and ETNs 2009-2014”