Gold ETF

Gold ETF

» Home

» Stock Market

» Exchange Traded Funds

» Forex Trading

» Mutual Funds

» FeedBurner

» Resources

Gold ETF

A Gold ETF is a unique type of exchange-traded fund that tracks the price of gold. Gold exchange-traded funds are traded on the major stock exchanges including New York, London, Zurich and Mumbai.

The first gold exchange-traded fund was start in March 2003 on the Australian Stock Exchange under Gold Bullion Securities (ticker symbol "GOLD"). Gold Bullion Securities (GBS) are fully backed by gold which is both deposited and insured. GBS was launched to give financial institutions and private investors the opportunity to own gold and gain exposure to the price without the inconvenience of storing physical bars or opening an account.

The thought of gold ETF was first officially conceptualized by Benchmark Asset Management Company in India, where they filed a proposal with the SEBI in May 2002. However, it has not received regulatory approval and was launched later in 2007. Benchmark Mutual Fund launched India's first Gold ETF on 15 February followed by UTI Mutual Fund's Gold scheme on 1 March 2007.

ETFs and ETNs that focus on Gold include:

ProShares UltraShort Gold ETF (GLL) : The ProShares UltraShort Gold ETF seeks daily investment results that correspond to twice the inverse (opposite) of the performance of gold bullion, as measured by the U.S. Dollar fixing price for delivery in London.

streetTRACKS Gold Shares ETF (GLD) : The objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses.

PowerShares DB Gold Fund (DGL) : The PowerShares DB Gold Fund is based on the Deutsche Bank Liquid Commodity Index - Gold and managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.

PowerShares DB Gold Double Long ETN (DGP) : The PowerShares DB Gold Double Long Exchange Traded Note, the PowerShares DB Gold Short Exchange Traded Note and the PowerShares DB Gold Double Short Exchange Traded Note are the first exchange traded products providing investors with a cost-effective & convenient way to take short or leveraged views on the performance of gold. Each ETN is based on the Deutsche Bank Liquid Commodity Index-Optimum Yield Gold, designed to reproduce the performance of certain gold futures contracts plus the returns from investing in three-month U.S. Treasury Bills.

iShares COMEX Gold Trust ETF (IAU) : The iShares COMEX Gold Trust seeks to correspond generally, to the day-to-day movement of the price of gold bullion. The objective of the Gold Trust is for the value to reflect, at any given time, the price of gold owned by the Gold Trust at that time, less the expenses and liabilities of the Gold Trust.

E-TRACS CMCI Gold ETN (UBG) : The UBS E-TRACS CMCI Gold Total Return seeks to reproduce the performance of the UBS Bloomberg CMCI Gold Total Return. The ETN measures the collateralized returns from a basket of gold futures contracts. The commodity futures contracts are diversified across 5 constant maturities from 3 months up to 3 years.

PowerShares DB Gold Short ETN (DGZ) : The PowerShares DB Gold Double Long Exchange Traded Note, the PowerShares DB Gold Short Exchange Traded Note and the PowerShares DB Gold Double Short Exchange Traded Note are the first exchange traded products providing investors with a cost-effective & convenient way to take short or leveraged views on the performance of gold. Each ETN is based on the Deutsche Bank Liquid Commodity Index-Optimum Yield Gold, designed to reproduce the performance of certain gold futures contracts plus the returns from investing in three-month U.S. Treasury Bills.