How to select the best Gold ETF
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The market is flooded with gold Exchange Traded Funds (ETFs), making it difficult for investors to choose the best one
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all ETFs also provide the same benefits of purity, liquidity, safety, and security, as well as better tax advantages over actual gold.
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A superior ETF is one with a larger corpus since it suggests that many people are choosing to invest in that specific strategy
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The Asset Management Company (AMC) is charged a fee known as the Expense Ratio for managing the investments in a certain scheme
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The Net Asset Value (NAV) of the ETF frequently does not represent these fluctuations in the price of actual gold
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Investors can select the strategy with a lower tracking error even though an ETF's tracking error is unavoidable
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Tracking error is essentially anything that causes the ETF return and the underlying commodity (in this case, gold) to differ
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Selecting an ETF with strong volumes and active trading on exchanges is crucial.
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Experts contend that any liquid asset must be quickly convertible into cash. Impact Cost is a highly helpful metric for assessing an ETF's liquidity
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According to Kavalireddi, the corpus, traded volumes, expense ratio, tracking error, and impact cost have all decreased
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