Different prices for Gold ETFs

ashu1234

Well-Known Member
#2
Gold ETFs do represent 1 gm of gold but their NAV which is indicative of Nat Asset Value will be different. Net Asset Value is the amount which they actually allocate while purchasing the unit (whose underlying is 1 gram of gold), sometime they fully allocate your amount, sometime partly at different price and also there are expenses which are incurred while buying and selling. Also these etf's are traded on exchange so their asset value differ day to day.
If you have observed one thing there is a term used "tracking error" which means fund managers do try to generate returns on underlying gold, but entry price of every fund manager can't be same, their allocation can't be same, their expenses can't be same also their redemption can't be same that's why etf prices differ. Here's a link which may interest you to understand more:
http://thecastreet.com/inside-story-gold-etfs
 
#4
Gold ETFs do represent 1 gm of gold but their NAV which is indicative of Nat Asset Value will be different. Net Asset Value is the amount which they actually allocate while purchasing the unit (whose underlying is 1 gram of gold), sometime they fully allocate your amount, sometime partly at different price and also there are expenses which are incurred while buying and selling. Also these etf's are traded on exchange so their asset value differ day to day.
If you have observed one thing there is a term used "tracking error" which means fund managers do try to generate returns on underlying gold, but entry price of every fund manager can't be same, their allocation can't be same, their expenses can't be same also their redemption can't be same that's why etf prices differ. Here's a link which may interest you to understand more:
http://thecastreet.com/inside-story-gold-etfs
Has anybody already researched which ETF Charges the lowest expenses for the Gold ETF ?

Thanks for advising
 

ashu1234

Well-Known Member
#5
Has anybody already researched which ETF Charges the lowest expenses for the Gold ETF ?

Thanks for advising
Hi,
For gold etf, there's no detailed research required. Its all about the timing of the investment coz we are tracking the single underlying.
here's the link http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/gold-etf.html
which will help you to track performance of popular gold etf.
Select the ETF with good AUM(assets under management) and lowest expenses which is around 1%. Gold Bees, Kotak, UTI and Rshares look good to me.
 

prst

Well-Known Member
#6
Has anybody already researched which ETF Charges the lowest expenses for the Gold ETF ?

Thanks for advising
did some google on this couple of months back.
found that goldbees (from goldman) charge the lowest, when compared to others like reliance and axis bank.