Recently, many people have asked me what options there are for gold ETFs in Taiwan and how you should invest in them. Honestly, gold investing has definitely become quite popular over the past two years—especially tools like gold ETFs, which lower the barrier to entry for beginners.

In plain terms, gold ETFs make investing in physical gold as simple as buying stocks. You don’t have to buy gold bars yourself, and you don’t have to worry about storage issues—you just place an order on the exchange. I started exploring it for exactly this reason.

There are mainly three types of gold ETFs on the market. First, there are spot gold ETFs, which directly hold physical gold—things like GLD and IAU, which track international spot gold prices. Second, there are derivative-based products that use futures or contracts for difference to operate. These often involve leverage, which means higher risk. Finally, there are gold stock ETFs, which invest in shares of mining companies, and they tend to be more volatile than the first two types.

Why do so many people choose gold ETFs? I think the biggest advantage is low cost. Handling fees for physical gold can be as high as 5–10%, and you also need to pay storage fees separately. But the management fee for gold ETFs is only about 0.2–0.5%, and that difference is quite clear. Also, buying and selling is extremely convenient—just like trading stocks—so trades can be completed within seconds.

From an asset allocation perspective, gold has little correlation with stocks and bonds. Adding 5–10% of gold assets can help diversify risk. Especially when the stock market is volatile, gold often plays a hedging role.

When it comes to specific gold ETF options in Taiwan, Yuanta S&P Gold ETF is the largest one in the Taiwan stock market. Its asset size is more than 2.5 billion USD, and its liquidity is also the best, making it beginner-friendly. There are also Yuanta’s leveraged 2x and inverse 1x products, but I don’t really recommend beginners touching leveraged products.

In the U.S., there are more options. GLD is the largest gold ETF in the U.S., with an asset size of over 56 billion USD, and the liquidity is excellent. IAU has an even lower management fee of just 0.25%, so it’s also worth considering. SGOL is smaller, but it offers physical redemption options, so its risk is relatively lower.

To be honest, after comparing across the board, U.S. gold ETFs have performed more steadily than those in Taiwan. No matter whether you look at fund size, liquidity, or cumulative returns, they clearly have the advantage.

When investing in gold ETFs, I usually use a fixed-amount dollar-cost averaging approach. Buy a fixed amount at a fixed time each month—this helps average out your cost and means you don’t have to worry about buying at a high level. Another more advanced strategy is to buy more when prices fall and buy less when prices rise, but that requires a certain ability to judge price fluctuations.

When choosing an ETF, you should look at a few key points. First is the credibility of the issuer and the size of its assets—larger scale usually means better liquidity. Next, look at the tracked underlying asset and historical performance; ideally, review three-year returns and the maximum drawdown. Finally, consider costs—lower management fees really can save you a lot of money.

My own advice is: if you’re a long-term investor and want stable exposure to the gold market, then choosing U.S. gold ETFs like GLD or IAU is enough. If you want a more flexible trading strategy, you can consider gold contracts for difference, but that requires more trading knowledge.

Most importantly, no matter which gold ETF you choose, you need a long-term mindset. Gold investing is about accumulating gradually—at least 3–5 years to see results. Don’t trade too frequently, and don’t blindly chase after highs. Set a profit target; generally, gains of 30–50% are a reasonable point to consider taking profits and locking them in.