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Gold ETFs are Cheaper

Gold funds are slightly costlier than gold ETFs. Find out the other differences in them...

What is the difference between gold ETFs and gold funds? Which one is better?
- Vipul

A gold ETF invests directly into gold, while a gold fund invests in a gold ETF. To invest in a gold ETF, you need to have a demat account. On the other hand, gold funds are bought like regular open-ended mutual funds. The NAV of both kinds of funds changes as per the fluctuations in the price of gold. As far as their expense ratio is concerned, a gold fund will be 0.5 per cent to 1 per cent costlier than gold ETFs. All gold ETFs deliver similar kind of returns.

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