HDFC Gold ETF

About HDFC Gold ETF

• The HDFC Gold ETF is an exchange-traded fund focusing on investment in gold.
• The ETF is offered by an HDFC Mutual Fund house.
• The ETF was launched on August 13, 2010.
• The assets under management of the ETF stood at ₹5,075.77 crore as of July 31, 2024.
• Bhagyesh Kagalkar is the fund manager.
• The ETF is traded on both stock exchanges 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 objective of the ETF is to generate returns that are in line with the performance of physical gold in domestic prices.
• The ETF is benchmarked against the domestic price of physical gold based on the London Bullion Market Association (LBMA) gold daily spot fixing price.
• The ETF offers investors a way to gain exposure to the gold market without buying physical gold, being traded on exchanges, it provides liquidity and ease of access.
• The gold ETF allows investors to diversify their portfolios by adding a precious metal, which may behave differently from other asset classes like stocks and bonds.
• The performance of the ETF is closely aligned with the price of gold, subject to market fluctuations and fund expenses.
• Gold is often considered a hedge against inflation and economic uncertainty.
• HDFC Gold ETF has a high-risk level profile, making it suitable for long-term wealth creation.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 98.34% in gold and 1.66% in cash and cash assets.
• The top holding of HDFC Gold ETF majorly consists of gold around 98.34%.
• Since its inception, the ETF has given an annualised return of 9.02%, as of July 31, 2024.
• In a single year, the HDFC Gold ETF has given a return of 15.22% compared to its benchmarked index which has given a return of 16.20%, as of July 31, 2024.