{"id":4241,"date":"2023-01-23T12:07:17","date_gmt":"2023-01-23T06:37:17","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=4241"},"modified":"2025-03-26T22:43:28","modified_gmt":"2025-03-26T17:13:28","slug":"what-are-gold-exchange-traded-funds-gold-etfs","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-are-gold-exchange-traded-funds-gold-etfs\/","title":{"rendered":"What are Gold Exchange Traded Funds (Gold ETFs) ?"},"content":{"rendered":"<h2><strong>About Gold Exchange Traded Funds ( Gold ETFs):<\/strong><\/h2>\n<ul>\n<li>They are <strong>commodity-based exchange-traded funds<\/strong> with an <strong>underlying asset as gold.<\/strong><\/li>\n<li>They are <strong>passive investment instruments that are based on gold prices<\/strong> and invest in gold bullion.<\/li>\n<li>Gold ETFs <strong>are units representing physical gold which may be in paper or dematerialised form.<\/strong><\/li>\n<li><strong>One Gold ETF unit is equal to 1 gram of gold <\/strong>and is <strong>backed by physical gold<\/strong> of very high purity.<\/li>\n<li>Gold ETFs <strong>combine the flexibility of stock investment<\/strong> and the simplicity of <strong>gold investments.<\/strong><\/li>\n<li>They are <strong>listed and traded on<\/strong> the National Stock Exchange of India (<strong>NSE<\/strong>) and Bombay Stock Exchange Ltd. (<strong>BSE<\/strong>) like a stock of any company.<\/li>\n<li>It can be <strong>bought and sold continuously at market prices.<\/strong><\/li>\n<li>There is a <strong>complete transparency on the holdings<\/strong> of a Gold ETF due to its direct gold pricing.<\/li>\n<li>\u00a0ETFs have <strong>much lower expenses<\/strong> as compared to physical gold investments.<\/li>\n<\/ul>\n<h3><strong>What is an Exchange Traded Fund (ETF) ?<\/strong><\/h3>\n<ul>\n<li>An ETF is a <strong>collection of investments such as equities or bonds.<\/strong><\/li>\n<li>\u00a0It is a <strong>basket of securities<\/strong> that <strong>trades on an exchange<\/strong> just like a stock does.<\/li>\n<li>ETF <strong>share prices fluctuate all day<\/strong> as the ETF is bought and sold, which is different from mutual funds, which only trade once a day after the market closes.<\/li>\n<li>ETFs can <strong>contain all types of investments<\/strong>, including stocks, commodities, or bonds<\/li>\n<li>They <strong>have cheaper fees<\/strong> than other types of funds.<\/li>\n<\/ul>\n<h3><strong>What is Passive Investment?<\/strong><\/h3>\n<ul>\n<li>It is an investment strategy wherein <strong>investors buy securities that mirror stock market indexes and hold them long-term.<\/strong><\/li>\n<li>It is a strategy that <strong>focuses on replicating the index performance as opposed to daily buying and selling.<\/strong><\/li>\n<li>Passive investing <strong>seeks to avoid the management fees and high transaction costs<\/strong> that frequent trading can cause.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)<strong>\u00a0<\/strong>What is an active investment?<\/h3>\n<p>Active investment is a form of investment strategy that involves actively buying and selling assets in the hope of making profits and outperforming a benchmark or index.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.livemint.com\/market\/stock-market-news\/gold-etf-inflows-slump-as-prices-rise-11674411170048.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>Gold ETF inflows slump as prices rise<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold ETFs are commodity-based exchange-traded funds with an underlying asset as gold.<\/p>\n","protected":false},"author":5,"featured_media":4242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4241","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4241"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/4242"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}