Gold ETF Gets Off To A Glittery Start; Not All Are Seeing Gold; Equity fund managers prefer effect dividends, earnings have on stocks.(MUTUAL FUNDS)(INVESTMENT TRENDS)

Publication: Investor's Business Daily

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COPYRIGHT 2004 Investor's Business Daily, Inc.

Byline: MURRAY COLEMAN

The first U.S. exchange-traded fund that invests in gold bullion debuted last week amid record first-day trade, but some money managers and market observers are urging caution.

StreetTRACKS Gold Shares on Thursday set a volume record for derivatives on its opening day on the New York Stock Exchange. Some six million shares were traded. The next day more than 11 million shares of the ETF, which is distributed by State Street Global Advisors and sponsored by the World Gold Council, changed hands.

Each share of Gold Shares represents 10% of an ounce of gold. On the first three days of trading, its shares closed at 44.38, 44.78 and 44.97.

The demand for an easier and more direct way to invest in bullion as a hedge against inflation or a weak dollar was evident in...

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