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Commentary

Seeking Income While Maintaining Gold Exposure: The Case for Gold Through GOLY

November 11, 2026 9 min read

  • ~$4,304 Spot gold’s close per ounce on September 231
  • ~23% Below gold’s record of about $5,590, set January 282
  • ~16% Gold’s gain from a year ago3
  • ~90% Futures odds of another Fed hike in December1

Gold has had a rough year. Spot gold closed around $4,304 an ounce on September 23,1 roughly 23% below its record of about $5,590 set on January 28.2 Even after the drop, gold is up about 16% from a year ago.3 A pullback like this makes investors ask the same question: is this a warning sign or a better entry point?

The Fed Is the Main Headwind

The main headwind is the Fed. It raised rates by a quarter point on September 16, and Fed officials have since made the case for more.1,4 Futures markets now put the odds of another hike in December near 90%.1 Higher rates raise the cost of holding an asset that pays no interest, and they have helped push the U.S. Dollar Index above 100, which makes gold more expensive for buyers outside the United States.1 The pressure shows up in fund flows. North American investors pulled US$7.7 billion from gold ETFs in the first half of 2026, the weakest first half for the region since 2013.5

The Patient Buyers Have Not Left

The largest and most patient buyers in the market have not left. Central banks bought 289 tonnes of gold in the second quarter of 2026, up 62% from a year earlier, according to the World Gold Council.6 Poland added 51 tonnes, bringing its reserves to 632 tonnes. China’s central bank added 33 tonnes, bringing its holdings to 2,346.6 In the Council’s 2026 reserves survey, 89% of central banks said they expect global gold reserves to rise over the next year, and a record 45% said they plan to increase their own holdings.6,7 These buyers are managing national reserves over decades and do not react to a single Fed meeting.

  • Central banks

    289 t

    Gold bought in Q2 2026, up 62% from a year earlier6

  • Poland

    632 t

    Reserves, after adding 51 tonnes6

  • China

    2,346 t

    Holdings, after adding 33 tonnes6

Demand from investors outside North America has been steadier. Gold ETFs in Asia took in a record US$12 billion in the first half, and European funds added US$3.2 billion, leaving global gold ETF flows positive at US$8 billion for the period.5 At the retail level, dealers report that premiums on coins and bars have held up, a sign that buyers are treating the dip as an opportunity rather than a reason to leave.1

Gold ETF flows, first half of 2026 (US$ billions)

  • North America−7.7
  • Asia+12
  • Europe+3.2
  • Global+8

Source: World Gold Council.5

An Unsettled Geopolitical Picture

The geopolitical picture is still unsettled. This week’s talks between the United States and Iran at the UN raised hopes of easing tensions, and oil prices fell sharply on the news. President Trump and President Xi are meeting for their first summit in 11 years, with trade, rare earths, and the war in Iran on the agenda.3 Progress on either front could reduce the safe haven demand that helped drive gold’s run. A setback could just as easily bring it back. Investors hold gold for this kind of uncertainty.

A Familiar Problem

That leaves investors with a familiar problem. The long-term support looks solid, but the short-term path depends on how long the Fed stays aggressive. Buying physical gold means waiting with no income, and the wait could be long.

Buying physical gold means waiting with no income, and the wait could be long.

Built for the Wait

The Strategy Shares Gold Enhanced Yield ETF (GOLY) is built for that wait. It pairs gold exposure through futures with a core portfolio of investment grade corporate and Treasury bonds, along with a smaller basket of other commodities.8 The bond portfolio aims to generate income that the fund pays out monthly.8 There is also a side benefit to the current rate environment: as the fund adds newer bonds, they carry higher coupons than the ones issued before this year’s hikes. The same higher-interest-rate environment that can create headwinds for gold may support income generation within the portfolio’s bond holdings.

  • Gold exposure through futures
  • A core portfolio of investment grade corporate and Treasury bonds
  • A smaller basket of other commodities

Not a Free Pass on Rates

GOLY is not a free pass on rates. Rising rates can pressure gold and bond prices at the same time, and investors should expect the fund to feel both. Distributions are not the same as total return. Like any fund that uses derivatives, it carries risks that owning bullion does not.

A Measured Allocation

For investors who believe central bank demand will keep supporting gold but expect the Fed to stay hawkish for a while, GOLY offers a way to hold gold exposure and potentially collect income while that plays out. It fits best as a measured allocation within a broader portfolio. Adding to a position over several months, rather than all at once, can help reduce the risk of buying at the wrong moment in what is likely to remain a volatile market.

Performance

Performance as of 09/30/2026 Annualized if greater than a year
Share Class/Benchmark QTD 6 MOS YTD 1 Year 3 Years 5 Years Since Inception
GOLY: NAV -2.42% -16.29% -27.36% -20.14% 17.40% 5.19% 3.78%
GOLY: Market -2.26% -15.48% -27.86% -21.45% 17.26% 5.07% 3.71%
Bloomberg U.S. Agg TR -3.51% -2.87% -2.91% -1.84% 4.06% -0.64% -0.37%
Bloomberg U.S. Corporate TR -3.94% -2.59% -3.11% -2.30% 4.98% -0.46% 0.01%

Inception date: 5/17/2021. On January 5th, 2025, the Fund changed its name and investment strategy. There is no guarantee that the Fund will achieve its investment objective. You cannot invest directly in an index and unmanaged index returns do not reflect fees, expenses or sales charges.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 855-HSS-ETFS or visiting StrategySharesETFs.com. Market returns are based on the composite closing price and do not represent the returns you would receive if you traded the shares at other times. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Total Returns are calculated using the daily 4:00pm Eastern Time net asset value (NAV). The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date.

Risk Considerations

Past performance is not a guarantee of future results.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Strategy Shares Gold Enhanced Yield ETF. This and other important information about the Fund is contained in the full or summary prospectus, which can be obtained by calling (855) HSS-ETFS (855-477-3837) or at www.strategysharesetfs.com. The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.

Shares of this ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. Investments involve risk, including possible loss of principal. The Fund is classified as “non-diversified” to the extent that the Fund concentrates in one or more industries so that a relative high percentage of the Fund’s assets may be invested in a limited number of issuers and/or instruments. The Fund is generally comprised of a Bond component, a Gold component, and a Commodity Basket component. Investing in commodities markets may subject a fund to greater volatility than investments in traditional securities. The Fund may also invest in more aggressive investments, such as foreign and emerging market securities (which may expose the Fund to social and political instability, market illiquidity, a high level of volatility, limited regulation, and currency and exchange rate fluctuations) and total return swaps, futures and derivatives (which may increase the volatility of the Fund and cause the Fund to experience losses that exceed those experienced by funds that do not use total return swaps, futures and derivatives). The use of leverage can magnify the potential for gain or loss and amplify the effects of market volatility on the Fund’s shares. Investing in bonds is subject to credit, prepayment and interest rate risk. A rise in interest rates generally causes a decline in the value of fixed income securities owned by the Fund. The Fund is subject to regulatory change and tax risks; changes to current rules could increase costs associated with an investment in the Fund. These factors may affect the value of your investment.

The price of gold fluctuates over time. There is no guarantee that an investment in gold will increase or even maintain its value. Short-term, the price of gold has fluctuated widely. If gold markets continue to be characterized by wide fluctuations, the price may change in an unpredictable manner. Long-term, gold markets have historically experienced extended periods of flat or declining prices. There is no guarantee that the price of gold will move as expected relative to the U.S. dollar, nor is there any guarantee that gold will act as an effective inflation hedge.

On January 5, 2025, the Fund changed its investment strategy and name to Strategy Shares Gold Enhanced Yield ETF (formerly, Strategy Shares Gold-Hedged Bond ETF). Performance information for periods prior to January 5, 2025, does not reflect the Fund’s current investment strategy; consequently, such performance information may be less pertinent for investors considering whether to purchase shares of the Fund, as the Fund’s performance may have been different if the Fund’s portfolio was managed under the current investment objective, strategies, and policies.

Bloomberg Index Services Limited. BLOOMBERG® and the indices referenced herein (the “Indices”, and each such index, an “Index”) are service marks of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) and/or one or more third-party providers (each such provider, a “Third-Party Provider,”) and have been licensed for use for certain purposes to RATIONAL ADVISORS, INC (the “Licensee”). To the extent a Third-Party Provider contributes intellectual property in connection with the Index, such third-party products, company names and logos are trademarks or service marks, and remain the property, of such Third-Party Provider. Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors, including a Third-Party Provider, approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither Bloomberg nor Bloomberg’s licensors, including a Third-Party Provider, shall have any liability or responsibility for injury or damages arising in connection therewith.

Sources

  1. USAGOLD, “Daily Precious Metals Market Report, September 23, 2026”. https://www.usagold.com/daily-precious-metals-market-report-september-23-2026/ ↩
  2. CBS News, “Gold’s price is down by over 21%. Where will it head this September?” (September 1, 2026). https://www.cbsnews.com/news/golds-price-down-by-over-21-percent-where-will-it-head-september-2026/ ↩
  3. Yahoo Finance, “Gold price today, Wednesday, September 23, 2026: Gold holds as investors weigh China, Iran relations”. https://finance.yahoo.com/personal-finance/investing/article/gold-price-today-wednesday-september-23-2026-gold-holds-as-investors-weigh-china-iran-relations-110649042.html ↩
  4. CNBC, “Gold falls more than 1% after Fed hikes interest rates” (September 16, 2026). https://www.cnbc.com/2026/09/16/gold-gains-with-fed-rate-decision-in-spotlight.html ↩
  5. World Gold Council, “Gold ETFs: H1 flows remain positive” (July 2026). https://www.gold.org/goldhub/research/gold-etfs-holdings-and-flows/2026/07 ↩
  6. World Gold Council, “Gold Demand Trends Q2 2026: Central Banks”. https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2026/central-banks ↩
  7. World Gold Council, “Central Bank Gold Reserves Survey 2026”. https://www.gold.org/goldhub/research/central-bank-gold-reserves-survey-2026 ↩
  8. Strategy Shares, “GOLY: Strategy Shares Gold Enhanced Yield ETF” (fund page). https://strategysharesetfs.com/goly/ ↩

All sources accessed September 24, 2026.

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The views expressed represent the opinions of Rational Advisors, Inc. as of the date of publication and are subject to change. They are not intended as a forecast, a guarantee of future results, investment advice, or a recommendation to buy or sell any security.

For more complete information on Strategy Shares, download and view a prospectus or summary prospectus now or call (855) 477-3837. You should consider the fund's investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund's prospectus or summary prospectus, which you should read carefully before investing.

The Strategy Shares are distributed by Foreside Fund Services, LLC.