Discover the Best American Hartford Gold for Your Investment Portfolio

• AIG, an insurance company, was founded in 1919 by Cornelius Vander Starr, who was just 22 years old at the time.
• G continued to grow and by the 1970s, it was the largest insurance company in the United States.
• G became independent in 1994, when Starr's children sold their shares.

American International Group (AIG), now called Athene Holding Ltd. (ATH), is a holding company that owns several subsidiaries, including American International Group, Inc. (AIG), American Life Insurance Company (ALICO), and American General Life Insurance Company (AGLIC).
AIG was formed in 1919 by Cornelius Vander Starr, who began selling fire insurance and life insurance on ships and later expanded into marine insurance. Starr's company expanded into other insurance markets, including automobile insurance, and by the 1920s, it had become one of the largest insurance companies in the United States.
In 1968, Starr's company, American International Group, Inc, was listed on the New York Stock exchange (NYSE).

What Is American Hartford Gold?

This American gold stock is available through both American Hartford Gold Trust (AAU) and American Hartford Gold Bullion (AHGB). The primary asset associated with the trust is gold bullion. The trust carries 100,000 ounces of bullion, which is roughly 100,000 troy ounces.
The trust's assets consist of physical gold bullion. The stock trades on Nasdaq under the ticker symbol AHG.

Understanding the American Hartford Gold Fund

The American Hartford Gold Fund, or AHGDX, is a low-cost vehicle for investors interested in owning gold. The Fund is an exchange traded fund (ETF) that invests in physical gold. The manager, American Century Investments, has been investing and managing money for over 100 years.
The fund's goal is to provide investors with a way to own gold without the inconvenience and cost of keeping physical gold in a vault. The fund also seeks to provide investors with protection against inflation.
The fund was established in 1996 and tracks the performance of the price of gold. The fund is passively managed, meaning that it does not attempt to outperform an index, but rather to replicate it. If the price of gold goes up, the fund's price goes up. When the price of gold goes down, the fund's price goes down.
The fund charges an expense ratio of 0.25%, which means for every $100 invested, an investor pays $0.25 in expenses. The fund is priced daily, which means that investors can buy and sell their shares at any time.

Investment Objective

For US investors, this fund's objective is to approximate the performance of the S&P 500, a benchmark index of the U.S. equities market, but with significantly lower volatility. As such, American Hartford Gold is not meant as a source of portfolio growth, but as a way to help investors hedge against the volatility of equities.
Investment Strategy
American Hartford Gold's strategy is designed to mimic the performance of equities in U.S. dollars, but with less volatility. The fund uses derivatives, such as futures and options contracts, to hedge its exposure to equities. Types of equities include U.S. and foreign stocks, as well as real estate investment trusts (REITs), exchange traded funds (ETFs), and corporate bonds.
The fund's managers are experienced equity traders and they use proprietary quantitative models to analyze market data and translate their findings into trading decisions.
The managers have discretion to trade and invest in the equity market, but they may take a defensive stance when market volatility is elevated.

Investment Policy

Gold and gold-backed securities offer investors a hedge for risk, however, gold isn't suitable for every investor. Gold and gold mining stocks can be volatile, and investing in gold typically requires an investor's complete trust in gold, the mining stocks, and the companies that issue them.

Performance

Investors seeking long-term gains can find that American Hartford Gold offers a safer option than the traditional stock market. The fund's annual return for 2020 was 1.2%, compared to 16.5% for the S&P 500 Index. Its three-year annualized performance through July 2021 was 0.8%.

Safety
American Hartford Gold Fund's asset mix places a premium on gold, which historically has outperformed stocks during times of uncertainty. The fund holds approximately 60% of its total assets in gold bullion, which are held in secure vaults. This bullion base provides American Hartford Gold Fund with protection against inflation and currency devaluation.

Diversification
American Hartford Gold Fund's diversified portfolio includes physical gold, stocks, and bonds. Holdings include gold and precious metals mining companies, such as Barrick Gold Corporation (ABX) and Newmont Mining Corporation (NEM).

Portfolio Turnover
American Hartford Gold Fund's portfolio turnover rate was 21.5% in 2020, compared to 54.9% for the S&P 500 Index. This means that American Hartford Gold Fund's portfolio changed 21.5% compared with the S&P 500 Index's 54.9%.

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The Bottom Line

American Hartford Gold is a robust, secure, and convenient option for those looking to buy gold. With their impressive product offering, easy online access, and 1% cash-back reward on purchases, American Hartford Gold offers a solid way to invest in gold.