Expense Ratios of HDFC Gold ETF and ICICI Prudential Gold ETF

by Manshu on July 1, 2010

in ETF

I wrote about the past two year returns on gold ETFs a few days ago, and got a comment on that inquiring about the expense ratio of the two new gold ETFs that are going to be launched shortly.

The first one is HDFC’s gold ETF, which is expected to have recurring expenses of 2.50% of weekly net average assets per its Scheme Information Document (SID).

The second gold ETF that is about to be launched is ICICI Prudential’s Gold ETF, which is also expected to have recurring expenses of 2.50% of its weekly average net assets per its SID that I found on the SEBI website.

If you look at my post on the best gold ETFs, or the list of all gold ETFs in the Indian market, these expenses compare to most of the funds, but are not among the lowest.

{ 7 comments… read them below or add one }

Praveen July 20, 2010 at 1:19 AM

ICICI Gold ETF is closing on 29th July, i think. Are there any benifts if I take in NFO or it is as same as buying in NSE even after NFO closing date?

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Manshu July 20, 2010 at 3:49 PM

NFOs are not like IPOs in the sense that some IPOs can give you good listing gains (although this isn’t happening much lately). You can buy the ETF even after listing, and it won’t matter much.

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Umesh July 21, 2010 at 3:51 AM

NFO for ETF , you don’t have to plat stt and all other broker charges
Where as when buying selling in secondary market once issue iopen you have to

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RangaNadh July 26, 2010 at 1:05 AM

On which date HDFC Gold ETF (NFO) will be listed?

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manjunath.m August 21, 2010 at 8:35 AM

I invest HDFC ETF GOLD FUND during the NFO Period.

ETF listed in Stock exchange on 19-08-2010, but till date i have not received any confimation or allotment letter form the HDFC Mutual Fund.

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Bala September 17, 2010 at 7:11 AM

ICICI ETF – Today’s closing is 1927. I bought 25 units at 1920 in July (29) at IPO. Feeling cheated, given the appreciation in Gold prices since July.

Do you know why the appreciation is so low? Is this the case with other ETFs?

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shravan June 30, 2011 at 6:42 AM

What is expense ratio?
Do we need to pay for maintaining Gold ETFs or just brokerage for buy/sell is sufficient in india.
How Gold ETFs are different from other stocks in india.

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