When investors consider alternative assets like gold, they often struggle with how much of their portfolio to allocate and whether to reduce holdings in equities or fixed income.
Some ETFs simplify this choice. The WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE) offers exposure to gold futures alongside a basket of U.S. stocks similar to the S\&P 500. Since its launch three years ago, GDE has gained 22.05%, outperforming a traditional S\&P 500 ETF thanks to its gold overlay.
GDE’s appeal extends beyond combining bullion and stocks. Given the current U.S. fiscal outlook, gold may prove vital for long-term portfolios. For instance, President Trump’s recent spending bill does little to curb government expenses, potentially signaling further monetary easing, which often drives gold prices higher.
Additional factors favor gold and ETFs like GDE. Concerns over President Trump’s attempts to influence Federal Reserve Chairman Jerome Powell to cut interest rates add market uncertainty. Nitesh Shah, head of commodities and macroeconomic research at WisdomTree Europe, told Kitco News that this uncertainty may push more investors toward gold. Shah predicts gold could reach $4,000 per ounce in early 2026 if inflation remains high and a recession occurs.
Global central banks, especially in developing nations, continue to buy gold aggressively. In contrast, many Western investors have been slow to join the rally, with ETF flows in North America and Europe showing weak buying or even selling. Should Western demand increase, it could further boost gold and funds like GDE.
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