Glossary

Gold ETF: meaning, example and why it matters

An exchange-traded fund that tracks the price of gold and is bought through a demat account. It charges an annual expense ratio and can differ slightly from the gold price (tracking error).

Worked example

If a unit tracks one gram of gold and gold is ₹7,000 a gram (illustrative), the unit trades near ₹7,000. A 0.5% expense ratio on ₹1,00,000 costs about ₹500 a year.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

A gold ETF lets you hold gold exposure through a demat account at a cost that continues as long as you hold it.

Related terms

ETFDemat accountExpense ratio

See it in practice

Ways to invest in gold

Frequently asked questions

Is a gold ETF the same as physical gold?

No. It tracks the price of gold and can differ slightly from it because of costs.

Is this page investment advice?

No. Gold ETF is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.