Gold Etf Lets Retail Investors Swap Shares For Bars – Commodities Corner – Marketwatch

However, several Nifty-based exchange traded funds (ETFs) failed to mimic the movement of their benchmark indices. On 9 May, the day the Nifty rose 2.99%, the Birla Sun Life Nifty actually fell by 1.4%. On 13 May, when the Nifty shot up 1.35%, the Reliance Nifty ETF fell by 4%. On the same day, the ICICI Prudential Nifty ETF shot up 16.5%. Such aberrations are common in case of ETFs, which are thinly traded on the exchanges. The Birla Sun Life ETF has an AUM of Rs.

They can take delivery of London Bars, gold bricks that are traded by central banks and large institutions, but they best etfs now can also choose to have the gold exchanged into other gold coins or bars, he said. The SPDR Gold Trust, often referred to just as GLD, allows for a shares-for-physical-gold exchange too, but its definitely not for the Average Joe investor. Read about how gold ETFs have transformed the market. GLD investors who have a position in excess of 1 basketa set amount of shares, which for the GLD ETF is 100,000 sharescan exchange their shares for physical gold, according to Will Rhind, a managing director at the World Gold Council, an organization that sponsors the SPDR Gold Trust. The exchanges are done by authorized participants, which are typically big investment banks, said Rhind.

Luckily, an ETF can somewhat limit that downside risk while providing exposure to several high-growth industries. An attractive bunch of components Qihoo 360 is the leader of Internet security in China, with its technology used by 70 percentand 95percentof the PC and smartphone industries, respectively. Aside from security, Qihoo 360 is also attempting to monetize its 467 million monthly users in online search; it currently controls 25 percent of this market in China. With that said, Qihoo has a 100 percent-plus annual growth rate, along with operating margins of 24percent. Thanks to its stock losses, its currently valued at 20 times forward earnings, which looks rather attractive, given its growth.

The Winklevoss Bitcoin Trust ETF: What You Need to Know (GLD)

Investors are issued ETF shares, similar to how a gold standard nation issues gold-backed paper currency. Ordinary investors can’t redeem their shares for physical gold from the trust. Only “authorized participants” such as registered broker-dealers and securities market participants can withdraw or deposit physical gold. Simply put, investors have to trust that the Gold Trust has enough physical gold to back its shares at all times. Over time, the ETF can slightly lose sync with the price of gold due to currency rates, inflation, and other market factors.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s