Gold ETF

Gold ETF
Why in news? Investments in Gold ETFs has surged due to ‘sustained demand for gold-backed products’.
A Gold ETF (Exchange-Traded Fund) is a financial instrument that invests in physical gold and tracks the market price of gold.
It is traded on the stock exchange like a share and reflects real-time gold prices.
What is an ETF (Exchange Traded Fund)?
An ETF is a fund that tracks an index (like Sensex, Nifty), a commodity, or an asset.
When an investor buys an ETF unit, they get a unit of a portfolio that mirrors the performance of the underlying asset or index.
Benefits of ETFs
•    Allows asset diversification
•    High liquidity (can be traded anytime during market hours)
•    Lower expense ratio compared to mutual funds
•    Transparent pricing