The final best of funds series for 2022, and we end the series with the best Gold ETF to invest in 2022.
I get queries if this is the right time to invest in gold and Gold ETF. The short answer is every time is the right time for investment via SIP mode in a Gold ETF for the sake of diversification.
Also, Check – The Best Dividend Paying Fund to Invest in 2022 and The Best Value Fund to Invest in 2022
I am not a big fan of diversification and prefer to go with focused equity investment, so I have very little investment in Gold and Gold ETF. However, as Indians, we have gold for the ornaments, which is the significant chunk of my investment in gold.
We get the Gold ETFs from the NSE Website directly.
| NSE Symbol | Avg Traded Qty |
|---|---|
| AXISGOLD | 50k-100k |
| BSLGOLDETF | ~50k |
| CANGOLD | <500 |
| HDFCMFGETF | ~40L |
| IPGETF | <500 |
| IDBIGOLD | <500 |
| KOTAKGOLD | 100k-500k |
| QGOLDHALF | ~50k |
| RELGOLD | <500 |
| RELIGAREGO | <500 |
| SBIGETS | <500 |
| GOLDSHARE | ~200k |
| GOLDBEES | ~90L |
*Average traded volume data is per NSE Website.
The vital criterion to select the best Gold ETF is to invest in is the ETF, which has a lot more trading volume. If the average traded volume is meagre, you may end up paying a lot more because of the lesser number of sellers available when you want to buy. Similarly, when you want to exit, the same may happen where you may get a lot less because of the unavailability of buyers.
Based on the above criteria, we only have one choice: GOLDBEES. However, as per ValueResearchOnline, it has an expense ratio of 0.79%, which is very high for an ETF.
The second best choice of gold ETF is HDFCMFGETF. It has an expense ratio of 0.6%. However, it is also high for an ETF, but this is the best that we have right now. KOTAKGOLD has a lower expense ratio of 0.55%, but the trading volume decreases considerably.
Undoubtedly the best Gold ETF to invest in in 2021 has to be GOLDBEES and HDFCMFGETF.
As always, this isn’t a recommendation of any fund or ETF. Instead, the emphasis is on the process. The ETFs may be doing well now, but use the same process and find the best ETF to invest in when you want to invest. Use ValueResearchOnline and NSE Website as and when you want to invest in 2022.
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