VR Logo

Picking A Gold ETF

All Gold ETFs generate identical returns & investors should pick the one that has the lowest expense ratio…

Please provide details on the best gold ETF to invest in and what is the best time period to invest this for?
-Umesh

Gold ETFs are listed on major stock exchanges that one can buy and sell from, just the way one buys and sells shares. You will need a demat account to buy gold ETFs, which are closest to investing in physical gold without the risks involved in holding physical gold.
Gold ETFs invest directly in physical gold which means the buying and selling price of all the gold ETFs is identical. The returns generated by gold ETFs at any given point of time are also similar though there will be a minuscule difference between the schemes because of their different expense ratios. So, look for the ETF with the least expense ratio to invest in.
Ideally you should invest in gold ETFs once you have a well diversified portfolio of funds and restrict exposure to gold by allocating not more than 5-10 per cent of your total investments.



Post Your Query