"IAU is a physically backed gold ETF managed by BlackRock, with each share representing fractional ownership of physical gold bullion held in vaults. Its entire return comes from the spot price of gold, making it a unique investment vehicle."
"The portfolio role IAU fills is specific: a non-correlated store of value that tends to hold or appreciate when equities, credit, and fiat currencies come under stress. Investors use it as a hedge against inflation, currency debasement, and systemic financial risk."
"The Consumer Price Index reached 327.5 in February 2026, sitting at the 90th percentile of its historical distribution, indicating persistent inflation, which is the environment where gold has historically earned its keep."
"Equity volatility has also returned, with the VIX spiking to almost 31, well into high-fear territory. During these spikes, gold's non-correlation to equities is precisely what makes it useful."
IAU is a physically backed gold ETF managed by BlackRock, representing fractional ownership of gold bullion. Launched in 2005, it has $83.8 billion in net assets and a low expense ratio of 0.25%. IAU serves as a non-correlated store of value, appreciated during economic stress, and is used as a hedge against inflation and systemic risk. The current macro environment, characterized by high inflation and equity volatility, supports the case for holding IAU as a protective asset.
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