When it comes to gold investment, most people's first reaction is to go to a jewelry store to buy gold bars or coins. However, for modern investors, gold ETFs have long become the mainstream tool for participating in precious metal markets. As a special type of exchange-traded product, gold ETFs combine the liquidity of stocks with the value retention properties of gold, allowing ordinary investors to easily participate in the world's oldest asset allocation.
What exactly is a gold ETF? Why are more and more people choosing it?
Before diving into specific products, let's first understand the essence of gold ETFs. The full English name of ETF is Exchange-Traded Fund, which means they can be freely bought and sold on the exchange like stocks, without the time constraints of traditional funds. In contrast, gold ETFs have two major advantages: first, they can be traded around the clock, and second, you don't need to deal with the cumbersome procedures of handling physical gold bars.
Gold ETFs are mainly divided into two camps: one type tracks gold