Gold ETF is a gold fund which you buy through a stockbroker When you invest in an equity fund, you give your money to a fund manager,
and he buys equity When you buy a debt fund, similar Here, the gold fund has a single investment, which is gold You give your money to a gold fund,
and he buys gold The ETF format of a mutual fund is that the fund gets created, and then different people who own that gold fund sell in the market And you can buy it from the market You don't buy it from the fund company directly That is the design of any ETF,
and that is the difference between an ETF and any mutual fund When you buy a mutual fund, you give your money to a mutual fund which issues those units When you buy an ETF,
you place your order with the stockbroker, and the stockbroker is enabled to pass on that order or do the matchmaking of the order against some seller who will be owning that ETF So you are buying from somebody who already has it ETFs can be created and cancelled There isn't a steep premium or discount to them