SBI Gold ETF

About SBI Gold ETF (SETFGOLD)

• The SBI Gold ETF (SETFGOLD), formerly known as SBI-ETF Gold, is an open-ended gold exchange traded scheme belonging to the SBI Mutual Fund house.
• The fund was launched on May 18, 2009.
• It is listed on the National Stock Exchange (NSE) with the exchange symbol or scrip code SETFGOLD.
• The major focus of the ETF is to monitor the price of gold through investments in gold and gold-related products.
• Vandna Soni has been the fund manager of SBI-ETF Gold since January 2024.
• As of June 30, 2024, the fund’s assets under management (AUM) stood at ₹4,732.75 crore.
• The ETF units, just like equities, can be traded during the usual market hours.
• One can invest in the scheme by buying the ETF units directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The scheme aims to deliver returns that closely match those of the SBI-ETF Gold, previously known as the SBI Gold Exchange Traded Scheme.
• The scheme’s performance is benchmarked against the price of gold, based on the morning fixing by the London Bullion Market Association (LBMA).
• The scheme offers two plans — regular plan and direct plan.
• The direct plan is available exclusively to investors who purchase or subscribe to units directly from the mutual fund and is not accessible to those who invest through a distributor.
• The regular plan, on the other hand, is intended for those investors who choose to route their investments through a distributor.
• The fund falls in the high risk category.
• The ETF is ideal for investors who want to invest in gold without dealing with the hassles and costs of storing and safeguarding physical gold.
• The unit price closely mirrors the market price of gold, allowing investors to easily encash their holdings by selling units on the stock exchange.

Asset Allocation & Portfolio Composition

• In terms of total asset allocation, gold constitutes 98.49% of the assets, while cash, cash equivalents and other assets make up the remaining 1.51%.
• As of July 30, 2024, the SBI Gold ETF has delivered a return of 22.32% against the benchmark index's 23.52% yield during the period.
• The scheme has posted a CAGR of 14.25 over the past three years and 14.8% in five years.
• Since its inception, the scheme has delivered 10.06% annualised returns.