Zerodha Gold ETF

What is Zerodha Gold ETF?

 Zerodha Gold ETF is an exchange-traded fund (ETF) designed to replicate the domestic price of physical gold. This is a passive investment instrument linked to gold prices and invests in 99.5% or more purity gold bars.

How is owning Zerodha Gold ETFs different from physical gold ownership?

Buying Zerodha Gold ETFs means you are purchasing gold in an electronic form. Similar to stocks, you have the flexibility to buy and sell Zerodha Gold ETFs on exchanges. The trading of Zerodha Gold ETF occurs from a dematerialized account (Demat) through your respective broker platform.

Do Zerodha Gold ETFs provide returns in addition to gold price appreciation?

Zerodha Gold ETFs are designed to track the performance of domestic physical gold, and their value is directly linked to changes in the market price of the underlying precious metal. There are no additional returns that this instrument generates over and above the price appreciation.

How is the performance of Zerodha Gold ETFs linked to gold prices?

Zerodha Gold ETFs are designed to track the performance of the price of gold, and their value is directly linked to changes in the market price of the underlying precious metal. This means that as the price of gold moves, the value of the Zerodha Gold ETF units should move similarly.

What is the benchmark of the Zerodha Gold ETF?

The Benchmark for the ETF is the domestic prices of Physical Gold. 

What is the liquidity of Zerodha Gold ETFs in the market?

Zerodha Gold ETF  is listed on BSE & NSE. Zerodha Gold ETFs can be bought or sold anytime during the market hours through a stock broker. The exchange listing provides a platform for continuous trading. 

Can Gold ETFs be pledged as collateral margins in the trading account? 

Yes, it will be available for pledging once it is cleared by the clearing corporation of India Limited. Furthermore, the availability of margins will be subject to the policies of the individual broker.