CARLO MALONE

Gold ETF essentially refers to gold exchange traded fund. Exchange trade funds are an example of mutual funds that people use to invest in either money, or other valuable assets in the stock exchange. They also allow an individual to invest in a number of companies as opposed to just one like would be the case with normal investments. While there are several types of exchange traded funds, gold exchange traded funds are an investment in gold as a precious metal. The fund pooled is used to buy a huge amount of gold which is then put in storage. The shares obtained are shared out to investors proportionate to the amount invested. Depending on the gold bullion, the shares price will increase by the same amount that the value of gold increases. For instance, if the price of gold goes up by 15%, so will the price of the shares. gold etf
Advantages of Gold ETF

Unlike other stock exchange trades, the Gold ETF has an advantage that makes it quite convenient for most investors. First and foremost, it is flexible. This is because as long as it is within stock market working hours, the trading in gold can be done through the use of one’s brokerage account. Secondly, Gold ETF is flexible because even the middle level income earner can invest in its stocks. This is because one does not need a huge amount of gold to take part in the investment. There is a minimum amount required for one to invest in gold. However, investors are allowed buy gold in per ounce measures. This means that the precious metal can be bought in bits to enhance affordability.
There are different types of Gold Exchange Traded Funds. The most popular are;
1. SPDR Gold Trust (GLD)
2. Market Vectors Gold Miners Fund (GDX)
3. Pro Shares Ultra Gold (UGL)

gold etfs
Of all the three Gold ETF funds, GLD or the SPDR Gold trust is the most popular. After purchasing 400 ounce gold bars, they go on to sell shares at a tenth of the price of each ounce of gold. This is very fair considering the fact that an ounce of gold is very pricy nowadays. UGL or double gold ETF is the most aggressive of all the funds. The return is set in such a way that the profit doubles. Ten percent increase in the price of gold leads to a twenty percent increase in share value of this Gold ETF.