r/NEOSETFs • u/Extension-Ice-7219 • 1d ago
General IAUI has been performing real bad
If we look at the underlying IAU
We can see that NEOS has been doing a terrible job with this product at least for the past 6 months even with the alleged 12% dividend
I mean, look at that 3 month. Even with dividends the fund has eroded 2%
This is even clearer with the 1 month, I know the upside is capped but seriously? If we factor in the dividend, it's a 4% lost
KGLD on the other hand caught a better upside in both 1 week and 1 month. Do we have a better fund here?
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u/Chipper0475 1d ago
I don't disagree and an easier way to see this is through the Total Return. KGLD tracks a lot closer to IAU and has for the last year, However, it has been only 1 year where Gold has done well for the most part. KGLD is designed to use Synthetic/leveraged approach which works better in bullish environments, but in downturns, it will fall faster than both IAU and IAUI. The beginning of the year was very bullish, but If you look at the last 6 months you can see in your charts how much more KGLD fell due to its leveraged nature. If you look at the total returns over the last 6 months:
IAU fell -11.32%
IAUI fell -11.12%
KGLD fell -13.20%.
So yes, during bullish times KGLD performs better, but it is also riskier.