The full name of ETF is exchang traded fund, which is a transactional open index fund. Gold ETF refers to a financial derivative based on gold and tracking the fluctuation of spot gold price.

The basic principle is that large gold producers entrust physical gold to fund companies, and then fund companies rely on this part of physical gold to publicly issue fund shares on exchanges and sell them to various investors. Commercial banks are fund custodians and physical custodians respectively, and investors can freely purchase and redeem funds during their existence.

Gold ETF is listed on the stock exchange, which is convenient to buy and sell and has low transaction cost. Compared with other gold investment channels, its cost advantage is very prominent. In addition, gold ETF also has the advantages of safe storage and strong liquidity.

There is no gold ETF fund in Chinese mainland at present, and buying or selling gold by internationally renowned gold ETF funds will also have an important impact on the price of gold.

Due to the high price of gold, gold ETF generally takes 1g as a fund unit, and the net asset value of each fund unit is the spot gold price 1g minus the accrued management fee. Its transaction price or secondary market price in the securities market is based on the net asset price per share.