Investing in gold has always been a popular choice for hedging against inflation and market volatility. With the introduction of gold ETFs (Exchange Traded Funds), investors now have another option for Investing in physical gold. According to AMFI, a gold ETF is aimed to track the domestic physical gold price. These funds are passive investment instruments that are based on gold, and are traded on stock exchanges like any other security.
The $52.5bn SPDR gold Trust (AMEX:GLD) has held all its bullion in HSBC's London vaults since its inception as the first physically backed gold ETF. The Trust is backed by physical gold held in allocated form, meaning that the gold backing the ETF is allocated to the Trust and not held in pooled form or in a vault of another institution.
The VanEck gold Miners ETF (AMEX:GDX) is this sector's leading benchmark and trading vehicle, and it has had quite a run lately. GDX, the largest gold miners ETF, has gained over 40% since the start of the year and is up over 70% from its March 2020 lows. The ETF has a total net asset of more than $9 billion and tracks the NYSE Arca gold Miners Index, which is a modified market-capitalization weighted index of global gold mining companies.
gold ETFs globally recorded their seventh consecutive month of outflows in November with net redemptions of 34 tonnes ($1.8 billion) during the period. This outflow was led by redemptions from Europe and Asia with the U.K. accounting for the majority of outflows. The U.S. witnessed net inflows for the first time since March 2020.
As such, investors should tap the rally with the best-performing ETFs over the past month. iShares gold Strategy ETF IAUF, iShares gold Trust IAU, SPDR gold Shares GLD and SPDR gold MiniShares GLDM are some of the best-performing gold ETFs this month.
gold's shine may have dulled a bit in 2022, but precious metals have still been a popular choice among investors. The U.S. Global GO gold and Precious Metal Miners ETF is a smart way to play the gold sector. The ETF has generated returns of over 70% this year and has a total net asset of more than $2 billion.
Here are some of the best gold ETFs for hedging. investors hoard gold for many reasons, whether as a perceived hedge against inflation, a store of value or a safe haven in times of financial or geopolitical turmoil. The top gold ETFs are SPDR gold Shares, iShares COMEX gold Trust, VanEck Vectors gold Miners ETF, and Invesco DB gold Fund.
gold ETFs are gaining traction in India too. These schemes witnessed a total outflow of Rs 194.74 crore in November. Hybrid schemes witnessed net inflows of Rs 6,040.36 crore in November. The top gold ETFs in India are ICICI Prudential gold Exchange Traded Fund, HDFC gold ETF, and Aditya Birla Sun Life gold ETF.
In conclusion, gold ETFs provide investors with a great option for Investing in physical gold. They are easy to trade and provide liquidity. They are also cost-effective and offer a range of investment options. investors should do their due diligence before Investing in gold ETFs and select the ETFs that best suit their investment goals.
