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The investment firm offers strong exchange-traded funds in multiple sectors
U.S. Global Investors was one of the sponsors for the Benzinga Global Small Cap Conference that took place on December 8-9, 2020. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only.
Some investors love scavenging the screeners and watchlists for new stocks. Other investors like to invest their money and watch it grow without the hassle of picking individual stocks. U.S. Global Investors is a company for the latter investors.
The firm specializes in global markets and specialized sectors. For instance, one industry the firm is heavily involved in is airlines. U.S. Global created the $JETS ETF, which is a compilation of the top global airline companies.
ETFs are a great way for less experienced traders to have exposure to different markets or industries. A novice trader might know that airline stocks are going to grow from COVID lows but not have the trading experience to discern which individual stocks are good buys. That trader could buy the U.S. Global ETF and have that exposure to the airline industry.
One sector the company is heavily involved in is gold. The company has a gold fund called the "U.S. Global GO GOLD & Precious Metal Miners ETF." The fund tracks an index of 28 precious metal mining firms throughout the world.
Frank Holmes, CEO of U.S. Global Investors explained in an interview that there are benefits for investors to be into a gold-mining fund as well as the metal itself. "In a bull market, an investor can expect to see greater returns because of a rate at about three to one," Holmes said.
This is because there are other things to take into consideration with the fund, revenues of the mining companies, earnings and more. If you just buy the gold itself, there are no compounding factors, only the underlying price of the security.
Holmes also touched on the fact that U.S. Global primarily relies on future outlooks compared to past performance. "Things like the GDP are trailing indicators... it'd be like driving and looking for cars in front of you through the rearview mirror."
In addition to the gold and airlines ETFs, U.S. Global is making futuristic investments in blockchain and bitcoin with HIVE Blockchain Technologies. HIVE is a subsidiary company focused on the mining and production of bitcoin and other cryptocurrencies.
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