US President Donald Trump’s sweeping reciprocal tariffs have created a stir in the global markets, impacting almost all asset classes. Equities slumped, bonds surged, and gold hit new highs. Investors’ concerns grew, and their direct impact is visible on the prices of gold. Investors scramble towards safe-haven assets like gold in times of uncertainty, and this is what we have seen over the last few months. Ever since Trump was re-elected for a second term in the Oval Office, global equity markets have seen massive turmoil. In such a situation, investing in gold has become a strong option. If you also want to take advantage of this opportunity, then the Gold ETF can be a great option.
Also read: Top 10 gold ETFs in India
Trump announced a “discounted” 26% reciprocal import tariff on Indian goods on April 2. After this announcement, volatility was seen in the markets, and investors started looking for safe investment options. Gold benefited most from this.
Gold prices witnessed huge fluctuations. Spot gold prices fluctuated between $3,106 and $3,167 per ounce and finally stabilised in the range of $3,127 to $3,138 per ounce.
Gold prices surge to fresh highs in India
On April 3, gold of 999 purity was trading at Rs 91,423 per 10 grams – a fresh all-time high for the precious metal in India.
Experts believe that the US tariff policy will increase pressure on global growth, and investors will remain interested in safe-haven assets like gold and silver.
Central banks around the world are also constantly increasing gold reserves; concerns about inflation remain; and the demand for gold has increased. For these reasons, gold prices have constantly been going up.
Rising gold prices have attracted investors towards other gold-linked investments like Gold ETFs. Investors who want to invest in gold but want to avoid the hassle of buying gold physically, then a Gold ETF (Exchange Traded Fund) can be a great option.
Also read: Gold ETFs Vs Physical Gold: Where to invest? 10 to 15-year returns compared
Before investing in a Gold ETF, one of the key things to watch is – expense ratio. That is, the lower the cost of fund management, the greater the benefit investors will get. Here are 3 such Gold ETFs, which have low expense ratio and can give better returns in the long term.
Top 3 Gold ETFs based on the lowest expense ratio:
1. Zerodha Gold ETF
Expense ratio: 0.32%
Launch date: 26 February 2024
Riskometer Level: High
1-year return: 30.58%
2. Mirae Asset Gold ETF
Expense ratio: 0.34%
Launch date: 20 February 2023
Riskometer Level: High
1-year return: 30.54%
3. LIC MF Gold ETF
Expense ratio: 0.41%
Launch date: 9 November 2011
Riskometer Level: High
1-year return: 29.48%
(Data source: Value Research)
Also read: Top 5 Cheapest Gold ETFs to Own in India
Benefits of investing in Gold ETF:
-Benefits from rising gold prices;
-There is no concern about the safety and purity of physical gold;
-Investment is possible at low cost;
-Liquidity is high, that is, you can easily sell it if needed.
Summing up…
Trump’s new tariff policy has once again made gold a favourite of investors. In this period of instability in the markets, Gold ETF can prove to be a safe and profitable investment. If you are also thinking of investing in gold, then by choosing the right ETF, you can strengthen your portfolio and get good returns even in this tariff environment.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.