Gold etf, namely ExchangeTradedFund, refers to an open-end fund that invests most of its assets in gold, closely tracks the price of gold, and is listed on the stock exchange. Gold ETF is entrusted by the gold producer to the fund company, and then the fund company relies on this kind of physical gold to publicly issue fund shares on the exchange and sell them to various investors. Commercial banks act as fund custodians and physical custodians respectively, and investors can freely redeem the funds during their existence. ?
What are the benefits of investing in gold ETFs?
Generally speaking, ordinary people investing in gold ETFs have the following advantages. First, gold ETF, as a fund, is convenient to trade, has strong liquidity and can be realized at any time.
Second, the transaction cost is low, which eliminates the storage fee, insurance fee and other expenses of physical gold, and only requires a small handling fee.
Third, gold ETFs are traded on exchanges with strict supervision and high security.
Fourth, because the gold etf is operated by a special fund manager, the general income is relatively stable, and it is not easily affected by the sharp fluctuation of gold.
Of course, the more gold you buy, the longer you hold it, and the higher your income. According to the statistics of investment income in the past few hundred years, the yield of stocks still greatly exceeds the yield of gold. The correct investment strategy should focus on buying and holding stocks and bonds to obtain higher returns, while buying and holding a small amount of gold to reduce the risk of the portfolio and improve the overall return of the portfolio after avoiding risks. Therefore, if you want to invest in gold and have no professional knowledge, it is recommended to choose gold ETF for investment, which is relatively safe, with relatively few risk factors, simple operation and convenient trading.