Have you heard of gold ETFs (exchange-traded funds)? The profit potential from investing in them is substantial; those already trading can attest to this.
Investment in gold ETFs has grown at an annual rate of 16.65% over the last three years. In the past five years, gold ETF funds have delivered returns exceeding 14%. Below is more information about gold ETFs.
What are Gold ETFs?
Gold ETFs are investment vehicles that allow investors to benefit from the price changes of gold, a financial product traded on stock markets.
By investing in gold ETFs, you can take advantage of fluctuations in gold prices. This means you will benefit from profits if the price increases but incur losses if it decreases. However, long-term investors can expect to see significant benefits.
Gold ETF Performance
SBI Gold Fund: This fund has generated a 1-year return of 26.45%, a 3-year return of 16.24%, and a 5-year return of 14.19%. Launched in January 2013, it has provided a total return of 7%. The fund has an expense ratio of 0.10% and assets under management (AUM) of Rs. 2,522 crore.
LIC MF Gold ETF: This fund boasts a yearly return of 26.87%, a 3-year return of 16.65%, and a 5-year return of 14.56%. Since its inception in November 2011, it has produced a total return of 6.9%. It has an AUM of Rs 151 crore and an expense ratio of 0.41%.
LIC MF Gold ETF FoF: This fund has a 1-year return of 26.72%, a 3-year return of 16.51%, and a 5-year return of 14.23%. It has yielded a total return of 6.62% since launching on January 1, 2013. The fund has an AUM of Rs 64 crore and an expense ratio of 0.26%.
Invesco India Gold ETF: This fund offers a 1-year return of 27.02%, a 3-year return of 16.51%, and a 5-year return of 14.27%. Since its inception, it has generated a return of 6.91%. It has an AUM of Rs 98 crore and an expense ratio of 0.10%.
UTI Gold ETF: This fund has an annual return of 26.87%, a 3-year return of 16.25%, and a 5-year return of 14.15%. Launched in March 2017, it has provided a total return of 11.61%. The fund has an expense ratio of 0.49% and an AUM of Rs. 1,440 crore.
Axis Gold Fund: This gold ETF has achieved a 1-year return of 26.54%, a 3-year return of 16.29%, and a 5-year return of 14.42%. Launched in January 2013, it has delivered a total return of 6.8%. It has an AUM of Rs. 699 crore and an expense ratio of 0.17%.
Overall, investing in gold ETFs can be profitable for those who want to take advantage of gold’s long-term growth potential.