Baroda Gold ETF

About Baroda BNP Paribas Gold ETF

• The Baroda BNP Paribas Gold ETF is an open-ended exchange-traded fund that mirrors or tracks the price of gold.
• The fund’s inception date is December 13, 2023.
• It is a component of the Baroda BNP Paribas Mutual Fund house, which was established post a collaboration between the European financial services major BNP Paribas and Bank of Baroda.
• The fund is listed on both the National Stock Exchange (NSE) and BSE, with the exchange symbol BBNPPGOLD.
• Vishnu Soni is managing this fund since December 2023.
• As of June 30, 2024, the assets under management (AUM) stood at ₹68.65 crore.
• The ETF units can be bought and sold, just like equities, during the usual market hours.
• One can invest in the scheme directly through a demat account with a registered broker.

Investment Objective and Benchmark

• The benchmark for the Baroda BNP Paribas Gold ETF is the domestic price of gold, as the scheme invests in physical gold and gold-related instruments.
• Its investing goal is to yield returns that, before costs, roughly match the domestic gold price.
• The Baroda BNP Paribas Gold ETF is subject to tracking errors, fees and expenses, and the fund does not attract any exit load.
• The fund is appropriate for those looking to invest in physical gold and achieve returns that track the domestic price of gold.
• The fund is intended for long-term investment.
• Gold is considered as a hedge against inflation and deflation and has historically offered stable growth even during market slowdowns.
• According to SEBI’s guidelines for calculating risk grades, investment in the Baroda BNP Paribas Gold ETF is classified under the high risk category.

Asset Allocation and Portfolio Composition

• The Baroda BNP Paribas Gold ETF allocates between 95% and 100% of its total assets to physical gold and gold-related instruments.
• The remaining 0% to 5% is allocated to debt instruments, units of debt mutual fund schemes, money market instruments and cash & cash equivalents.

The fund’s current allocation with the portfolio weight includes:

• Gold: 96.95%
• TREPS/reverse repo: 0.51%
• Net receivables: 2.54%

In terms of performance, the Baroda BNP Paribas Gold ETF has achieved a compound annual growth rate (CAGR) of 32.39% since its inception (December 13, 2023).

During the same period, the domestic price of gold achieved a CAGR of 34.48%.