are designed to mirror domestic gold prices and provide investors with added convenience. Nippon India Gold BeES, SBI Gold ETF, HDFC Gold ETF and ICICI Prudential Gold ETF are some of the top-grossing schemes and hold almost two-thirds of the industry’s AUM.
Last year, the major Gold ETFs’ returns were roughly 61-62%, just below the price of gold (before fees and tracking errors). The average annual expense ratio for most of the bigger Gold ETFs ranges from 0.49% to 0.65%.
ETFs get rid of purity, theft, storage and insurance concerns that exist with physical gold. It’s easy to trade units on a stock exchange, with trading spreads being low, typically 0.12% for some of the largest ETFs.