Excited About Gold But Unsure of Its Trajectory? Try These 3 Approaches

Key Points

• After a tumultuous start to the year, gold is still up close to 10% year-to-date, but investors may be wondering if last year's rally can restart.
• Those bullish on the price of gold but looking to hedge a bet might consider an ETF balancing a gold investment with a more traditional equities approach.
• Bears could turn to an inverse gold ETF offering leveraged exposure, although the risks are magnified with funds like this.

It has been a tumultuous few months for gold, as the iconic safe-haven metal started the year by ascending to all-time highs but has since had plenty of ups and downs.

President Trump's nomination of Kevin Warsh to the position of chairman of the Federal Reserve Board, the ongoing war in Iran, and many other factors have caused two significant dips since late January.

Still, in the first days of May, gold seems to be on the rise once again, having climbed by about 2% in a week and bringing its overall year-to-date (YTD) performance to about 9%. This may not be enough to send gold bulls running to shore up their positions in anticipation of another sustained rally, but at least it highlights how difficult it can be to predict just where the price of gold will go.

Fortunately, there are ready-made bets that can position investors to benefit no matter what gold may do going forward. Three exchange-traded funds (ETFs) may be a helpful part of a balanced, though indirect, gold investment that can maximize potential returns regardless of whether prices rise or fall.

A Gold/Equities Hybrid Play With a Compelling Dividend Bonus

The WisdomTree Efficient Gold Plus Equity Strategy Fund BATS: GDE is an actively managed hybrid ETF that invests in both gold futures contracts as well as a portfolio of large-cap U.S. equities, including major firms like NVIDIA Corp. NASDAQ: NVDA and Alphabet Inc. NASDAQ: GOOGL.

While investors may more commonly think of the fund as a stocks ETF with a gold-based inflation hedge built in, this structure can also be flipped: GDE can be a gold ETF with equities exposure for balance.

Considering its unique approach and management, GDE's expense ratio of 0.20% is quite moderate.

And indeed, the fund has been able to outperform both gold and the S&P 500 so far in 2026: its YTD returns are about 12.5%.

On top of that, the fund pays a dividend yield of 3.77%, making it a fairly strong passive income play and adds to its appeal as a diversifier in a portfolio looking to avoid making too bold a bet on either gold or stocks.

A Targeted Gold Miner Approach Including Royalties Companies

A step removed from a direct investment in gold itself, the U.S. Global GO GOLD and Precious Metal Miners ETF NYSEARCA: GOAU instead targets a narrow portfolio of just over two dozen global gold mining companies.

The fund's underlying stocks come from a number of countries, ensuring that if there are production issues impacting a particular nation or region, the basket is reasonably well diversified to insulate against those shocks.

Importantly, GOAU takes a somewhat more conservative approach than some other gold mining funds, as many of the largest holdings—accounting for just under a third of the invested assets—are gold royalty companies like Royal Gold Inc. NASDAQ: RGLD.

Royalties companies may be attractive compared to mining firms because of their relatively lower operating costs, reduced risk associated with production stoppages, and so on.

GOAU's niche focus does come at a higher price, and at an annual fee of 0.60% this carries triple the expense ratio of GDE. Its dividend yield is also lower at 0.89%. With an annual return of around 4% YTD, GOAU may not have enjoyed the same early-2026 boost as GDE either.

A -2X Leveraged Play on Gold Bullion for Bears

For investors truly bearish on gold after its incredible rally in recent quarters, a handful of ETFs take an inverse approach, benefiting when the price of gold (or, in some cases, gold-related stocks) falls.

A classic example of this is the ProShares UltraShort Gold ETF NYSEARCA: GLL, which provides -2x daily leveraged exposure to the price of gold bullion via futures-based indexing.

When the price of gold falls, GLL aims for positive returns at double that level.

Like most leveraged funds, GLL resets on a daily basis, meaning it is designed for only short-term, tactical bets against gold. With a confluence of factors sending the price of bullion zig-zagging in recent months, investors may find plenty of opportunities to capitalize on price drops.

GLL's expense ratio is justifiably high given its specialized strategy and leverage, and the fund charges an expense ratio of 0.95%. Even investors generally optimistic about the price of gold might want to consider this if they expect a short-term dip that could provide an opportunity for GLL to shine.