Gold ETFs are commodity-based exchange-traded funds with an underlying asset as gold. Gold ETFs are an alternative if you want to take yellow metal exposure. Gold ETFs function pretty much like stocks and trade on the stock exchanges.
Gold ETFs have become increasingly popular in the past years. These allow investors to earn returns like a gold investment. But when it comes to investing, investors often struggle to select gold ETFs.
Here are the top gold ETFs of 2022.
HDFC Gold ETF
The fund generates returns per the gold performance, subject to tracking error. It is one of the best HDFC Gold ETFs for investing.
Invest in gold ETFs. Follow the price of HDFC Gold ETF on Angel One.
Axis Gold ETF
The fund’s returns align with the performance of the gold. It is one of the best gold ETFs for investing.
To buy an Axis Gold ETF. Track Axis Gold ETF’s price on Angel One’s website.
Kotak Gold ETF
The fund aims to provide returns that closely follow the returns earned by gold in the domestic market. The scheme’s performance differs from gold in the domestic market due to expenses and other related factors.
Invest in gold ETFs with Angel One. Track the price on Kotak Gold ETFs.
Nippon India Gold Savings Fund
The gold ETF from Nippon India aims to earn returns that closely correspond to the price of gold in the domestic market. Any difference between the scheme’s returns and gold in the domestic market is due to expenses and other related factors.
Invest in Nippon Gold Savings Fund with Angel One. Track live price updates on Angel One’s mobile app.
UTI Gold ETF
The UTI Gold Fund generates returns close to the price of gold in the domestic market. It is one of the top gold ETFs for investing.
Buy UTI Gold ETF on Angel One.
Quantum Gold ETF
Investors can get returns that closely correspond to the performance of gold in the domestic market.
Invest in Quantum Gold ETF with Angel One.
IDBI Gold ETF
The ETF fund aims to offer gold ETF returns that closely correspond to the returns generated by the price of gold. The performance variance between the gold ETF and domestic gold price is due to expenses and other related factors.
Track live price updates of IDBI Gold ETF on Angel One.
Aditya Birla Sunlife Gold ETF
The fund earns returns that closely correspond to the price of the yellow metal in the domestic market.
Investing in gold ETF can help you get exposure to the precious metal and diversify your portfolio. Buy Aditya Birla Sunlife Gold ETF on Angel One.
Invesco Gold ETF
The fund aims to generate returns that closely mimic returns of domestic gold prices. Any variance in the fund’s performance from the domestic gold price is due to expenses and other factors.
Track live price updates on Invesco Gold ETF on Angel One.
Key points to consider while investing in gold ETFs
- Long-term investment in gold generates returns as low as 10 percent annually. So, you may consider gold investment for short-term purposes.
- While selecting a gold ETF for investing, don’t only compare the fees but also the fund’s performance.
- Returns on ETFs will attract Capital Gain Tax based on investment tenure. If investors redeem units before three years, they will earn a short-term capital gain, and the returns will be taxed as per the investor’s income tax slab.
- In case the investor sells the units after three years, a 20 percent Long Term Capital Gain Tax is levied.
- If you are looking for a gold investment that is also highly liquid, gold ETFs are more viable than other gold investments.
- Avoid assigning too much weight to gold investment in your portfolio. Like 5-10 percent of your total investment is good enough.
Gold ETFs are a good investment option if you want to invest in precious metals but don’t want the trouble of storing them. Unlike government gold bonds which have an investment tenure of eight years, gold ETFs are liquid and traded on the stock exchange. Open a Demat account with Angel One and invest in a range of investment products.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.