The SBI Gold ETF invests in physical gold, and at any time -Â it will have 90% â€“ 100% of its investments in gold and gold bullion. Up to 10% of its investments can be in debt and money market instruments.
The expense ratio of this scheme is 2.5% for Plan A and 1.5% for Plan B. Plan A is for retail investors and Plan B for institutional investors. So retail investors should really think about the expenses as 2.5% of average daily net assets.
Bank of Nova Scotia is the gold custodian for this scheme and all the physical gold will be held with either them or sub custodians appointed by them.
The price of SBI Gold ETF is dependent on two things:
- Price of gold: Since this is an ETF that invests in gold, the price and NAV will be dependent on the gold that this ETF owns, and the price movement of gold.
- Demand and supply: At the same time, this is an ETF, so it trades on a stock exchange and therefore the value of the ETF also depends on the how it is trading.
Because of these two factors it is possible that the market price is different from the NAV of the ETF. It can be higher or lower based on the demand in the market.
SBI publishes its latest NAVs on its website and you can find that here. You can take a look at the latest NAV of SBI GETS, and then compare it with the price it is trading at on the stock exchange to find out the difference between NAV and actual market price at any given time.
SBI Gold ETF is one of six Indian gold etfs available to Indian investors right now.
This is a brief summary of this plan and is not a buy or sell recommendation. It doesnâ€™t cover several risk factors related to the price of gold or ETFs..