EDELAMC - EGOLD

EGOLD- Edelweiss Gold ETF

• The Edelweiss Gold ETF is an exchange-traded fund focusing on gold.
• Edelweiss Mutual Fund House manages the ETF.
• The scheme was launched on November 7, 2023.
• The ETF’s assets under management (AUM) stood at ₹50.54 crore as of July 31, 2024.
• The scheme funds have been managed by Amit Vohra since July 1, 2024.
• The risk level profile of Edelweiss Gold ETF is high.
• The ETF is traded on both stock exchanges NSE and BSE like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing market prices through a demat account.

Investment Objective & Benchmark

• The Edelweiss Gold ETF objective is to closely match the performance of actual gold in the local market.
• The ETF tracks the daily spot price of gold in the domestic market. Its performance is intended to coincide with changes in gold prices caused by daily spot-fixing.
• For those looking to benefit from gold’s long-term performance, the Edelweiss Gold ETF offers a convenient alternative to buying and storing physical gold.
• Investors can trade the ETF on stock exchanges, which provides liquidity and ease of access.
• A key advantage of investing in this gold ETF is the diversification it brings to your investment portfolio. Gold often moves differently from other asset classes like stocks and bonds, potentially adding stability and balance to your overall investment strategy.
• Although the Edelweiss Gold ETF performance is closely linked to gold prices, it is still affected by market fluctuations and fund-related expenses.
• Gold is often used as a hedge against inflation and economic uncertainty. The Edelweiss Gold ETF tries to deliver these protective benefits by closely tracking gold's performance.
• The risk level profile of Edelweiss Gold ETF is high.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 97% in gold, 2.67% in cash and cash assets and 0.34% in TREPS.
• The top holding of ETF majorly consists of gold around 97%.
• Since its inception, the Edelweiss Gold ETF has given an annualised return of 18.28% to its investors.
• In 6 months as of July 31, 2024, the ETF has given a return of 19.62% compared to benchmark returns of 20.68%.