Gold Exchange Traded Funds Research Articles

Comparative Analysis of Mutual Funds and Gold ETFs: A Study on Investment Performance

This project analysis the returns of specific large-cap equity mutual funds and Gold Exchange Traded Funds (ETFs) to determine the best investment options for investors looking to balance growth and stability. To create a well-rounded portfolio, the study assesses the performance metrics and risk factors of these investment options. Large-cap equity funds are examined for their ability to offer growth in investment value, while gold ETFs are evaluated for their function as protection against market fluctuations and rising prices. A Decision matrix framework is utilized to methodically assess every fund and ETF based on factors including past performance and level of risk. This method based on data allows for a comprehensive analysis, pointing out the advantages and drawbacks of equity and gold investments. The research provides information on strategic asset allocation, highlighting diversification to maximize profits and handle risk efficiently. The results are meant to assist investors in making knowledgeable, eco-friendly investment choices in a changing financial environment.

Assessing Awareness and Understanding of Gold ETFs Among Residents of Amravati City

This study investigates the level of awareness and understanding of Gold Exchange-Traded Funds (ETFs) among citizens of Amravati City. As a modern investment option, Gold ETFs offer a convenient and secure method for individuals to invest in gold without the physical burden of ownership. Despite their growing popularity, awareness of Gold ETFs remains limited, particularly in smaller urban areas. Using a quantitative approach, this research collects primary data through surveys to evaluate knowledge, perceptions, and investment intentions regarding Gold ETFs among local residents. The findings aim to inform stakeholders about existing gaps in awareness and suggest strategies for enhancing financial literacy and investment participation.

ANALYTICAL STUDY ON THE PERFORMANCE EVALUATION OF GOLD ETFS IN INDIA

Purpose: This study evaluates the performance of Gold Exchange-Traded Funds (ETFs) in India. It aims to provide insights for investors by analyzing various performance metrics. The objective is to understand how these ETFs compare with other investment options. Methodology: The methodology involves analyzing returns, volatility, and tracking error of selected Gold ETFs using statistical tools such as Sharpe Ratio, Jensen’s Alpha, and Standard Deviation. Data is collected from sources like the National Stock Exchange (NSE) and financial reports of Gold ETFs. Findings/Results: Key findings highlight trends in performance, showing that Gold ETFs offer competitive returns with moderate to high volatility. The results suggest that these ETFs are viable investment options, providing a hedge against market volatility and inflation. Originality/Value: This study provides a comprehensive analysis specific to the Indian market, addressing gaps in existing literature. It offers valuable insights for investors seeking to diversify their portfolios with Gold ETFs. Implications: The findings have significant implications for investors, helping them make informed investment decisions. By understanding the risk-return profile of Gold ETFs, investors can better manage their portfolios and achieve their financial goals. The Research paper focused on the performance evaluation of Gold ETFs in India, providing empirical analysis and practical insights for investors and policymakers.

Examination of Leverage effect among India and Global GOLD Exchange Traded Funds

Examination of Leverage effect among India and Global GOLD Exchange Traded Funds

Gold Exchange Traded Funds (ETFs), Take Profit / Stop Loss Prediction using Machine Learning

Investment vehicles called Gold-Traded Funds (ETFs) try to follow the price of gold and are traded on stock markets. Without having to actually buy or store the metal, they provide investors with access to gold. Like stocks, gold ETF shares may be purchased and sold. Stop loss and take profit are common risk-management techniques for trading and investing that are automatically generated when the price of an asset rises above or below a certain threshold. Stop loss orders are used to minimize possible losses by closing out a trade before the price falls any lower. All earlier mentions combined; Our research showed that in order for an investor to get the maximum profit or the smallest loss, the movement of the points used to halt a loss or take gains must be adjusted. In our study, we used a series of algorithms to anticipate the market's direction and the progress in that direction. The points were adjusted automatically based on the outcomes. This study demonstrates how to establish an easy-to-use machine-learning model that aims to forecast the gold market, Stop Losses and take profit. We shall predict market trends to determine stop loss or take profit pips based on supervised machine learning models. Yahoo Finance released the dataset that was utilized to forecast market trends and (Stop Loss / Take Profit) Pips. Tree, Support Vector Classifier (SVM), random forest, Neural Network and K-Nearest Neighbour (KNN) Classifier are used with an accuracy of 83%,56%,91%,99% and 92% in sequential.

A Comparative Analysis on the Role and Market Linkages of Gold Backed Assets During COVID-19 Pandemic

Gold is a traditional favorite investment avenue for investors all over the globe, particularly during the crisis period. Irrespective of the nature of the crisis, investors are allocating their funds to different gold-backed assets. This paper uses various globally traded gold-backed assets to identify its role and market linkages during the Covid 19 pandemic. Daily prices of assets from March 2020 to January 2022 were employed. DCC GARCH model is used to ascertain time-varying correlations and quantile regression was employed to examine the relationship between assets in different quantiles. Based on the analysis, safe haven property of all the assets is revealed and it is associated with the severity of the stock market crash as specified by the quantiles. Moreover, double exposure of gold mining stock results in different flights to quality. Co-movement of gold bullion, gold futures, and gold volatility index is visible during this crisis. Gold Exchange Traded Funds and gold-backed cryptocurrency offer diversification by decoupling with gold bullion in the portfolio. The paper highlights the importance of the choice of gold-backed assets along with gold bullion in the investment portfolio based on its role and market linkages.

A Study on Performance Evaluation of Gold Exchange Traded Funds in India: Pre & Post Covid Scenario

For centuries, Indians have had a strong affinity for gold. However, it was only in the year 2007 when India launched its first gold ETF (Gold BeES). The underlying asset of these ETFs is gold. Also, gold ETFs give you exposure to the Indian gold market. Gold Exchange Traded Funds, or Gold ETFs, are open-ended mutual fund schemes based on the ever-fluctuating cost of gold. Physical gold, on the other hand, does not generate an income. Also, the making charges on physical gold are high. Gold ETFs give investors exposure to the gold market. They are an excellent choice of investment for investors looking to beat inflation in the long run.

IMPACT OF COVID 19 ON PERFORMANCE OF GOLD ETFS IN INDIA

People invest in gold because they view it as a valuable economic resource, they can use to supplement their income. COVID-19 pandemic and economic lockdowns are likely to support consumer demand for gold performance in the short term. If the economy recovers quickly and the stimulus measures are in place for a long period of time, Gold’s behaviour may be affected. The GDP growth rate in India has been trending downward. Consumer spending on non-essentials fell in this environment. COVID19's outbreak in March only served to amplify this trend. People are becoming more cautious with their money. Indian and international gold demand is expected to be high, according to a recent study. The Covid -19 pandemic lowered the demand for gold for a short period of time. The demand for investment is increased as a result. This paper is a study of the Performance Evaluation of Gold ETFs in India during the Covid-19 Pandemic Situation. Knowing how behavioural biases affect investor preference for gold exchangetraded funds (ETFs), Investing in gold requires an understanding of the psychological aspects of the process. Assessing how gold ETFs demand changes during the pandemic is essential for figuring out why investors are becoming so irrationally bullish on gold.

Reaction of Indian Gold Exchange Traded Funds to Covid-19 Cases and Fatalities

Exchange Traded Funds (ETFs) are recently popularised new form of financial market instruments that provide benefit of both mutual funds and stocks. Present study investigated if there exists any difference between the average returns of selected Gold ETFs during Covid-19 era against pre Covid-19 era and subsequently analyzed the long-term and short-term impact of new Covid-19 cases and fatalities on returns of Gold ETFs through Auto-regressive distributed lag (ARDL) model. It has been observed that in long term new Covid-19 cases had positive and significant impact on the returns of ETFs while new fatalities had significant negative impact on the returns of all the Gold ETFs except for BSLGOLD ETF. Short-run relationship between dependent and independent variables was in contrast to the long-term relationship.

Hedging with financial innovations in the Asia-Pacific markets during the COVID-19 pandemic: the role of precious metals

<abstract> In this study, we exploit the information contained in financial innovations in precious metals for hedging the risks associated with the Asia-Pacific equities during the current pandemic. We measure financial innovations as exchange traded funds (ETFs) for gold, silver, platinum and palladium which contrast with investment in the physical precious metals since the former tracks well the prices of the latter and as well provides cost-effective alternative to invest in the markets without storage costs. Based on the optimal portfolio weights and optimal hedge ratios, we find that gold offers the best hedge (followed by silver, platinum, and palladium) against the risk associated with the Asia-Pacific equities during the COVID-19 pandemic albeit with a lower hedging effectiveness during the pandemic. Overall, including gold ETFs in an Asia-Pacific equity portfolio would provide both a valuable portfolio combination that could improve the risk-adjusted performance of the market in addition to serving as an effective hedge for equity-related risks. </abstract>

Intraday Jumps, Liquidity, and U.S. Macroeconomic News: Evidence from Exchange Traded Funds

This paper uses two highly liquid S&amp;P 500 and gold exchange-traded funds (ETFs) to evaluate the impact of liquidity and macroeconomic news surprises on the frequency of observing intraday jumps. It explicitly addresses market microstructure noise-induced biases in realized estimators used in jump detection tests and applies non-parametric intraday jump detection tests. The results show a significant increase in trading costs and elevated levels of information asymmetry before observing jumps. Depth, resiliency, and trading activity are associated with the frequency of observing intraday jumps and cojumps. The ability of liquidity variables to predict intraday jumps persists after controlling for news surprises. Results show that intraday jump realizations affect the price discovery of ETFs.

Speculative substance: ‘physical gold’ in finance

This paper focuses on how gold as a physical object moves in financial markets, in what is known by many market participants as ‘the gold space’. Gold acts today in financial markets as an ambiguous moral and calculative actor, whose material properties signify both solidity and speculation. This paper examines gold as a ‘speculative substance’ in two arenas: (1) controversies surrounding what should be done with the gold that is held in central banks as part of the sovereign wealth of nation-states but no longer as reserve currency; and (2) A split between markets for ‘physical gold’ and other financial assets that are based on gold, such as gold exchange-traded funds.

A behavioral analysis of the gold investors in India with special reference to Kerala

This paper investigates the behavior of the capital market investors in Kerala towards gold investment. It also examines the perception of the Gold Exchange Traded Funds as a gold investment option among the capital market investors in Kerala. A structured questionnaire was used for collecting data from the Keralities who are demat account holders and invest in the capital market. Factor analysis was used to identify the factors which influence the perception of the investors towards Gold Exchange Traded Funds. Discriminant analysis was used to identify the factors influencing the investment in Gold Exchange Traded Fund. This is the only study, which has been conducted to study about the perception of the capital market investors in Kerala towards Gold Exchange Traded Funds as an investment option in gold.

Performance Evaluation of Select Exchange Traded Funds and its benchmark in India

Mutual funds are investment vehicles which pool money from various individual investors and are managed by professional fund managers. In India there are varieties of mutual funds namely Equity funds, Debt funds, Liquid funds, Balance funds, Exchange Traded Funds (ETFs) etc. This study focuses on four Exchange Traded Funds (ETFs) namely Aditya Birla Sun Life Gold ETF, Axis Gold ETF, HDFC Gold Exchange Traded Fund and SBI-ETF Gold. All these funds have Nifty 50 as their benchmark. To compare the performance of these funds Average returns, Standard deviation, Beta, Sharpe ratio, Treynor ratio, Jensen alpha, Sortino ratio and Information ratio were calculated for five financial years (April 1st 2015 to March 31st 2020). The results suggest that all the schemes have better returns than Nifty 50 and all the schemes have defensive relationship with market.

Gold vs Gold Exchange Traded Funds: An Empirical Study in India

This study aim of this is to estimate the relationship between gold and Gold Exchange Traded Fund (ETF) and the performance of Gold ETFs in India by using various statistical models. The data for the study covers a period of three years from 2015 to 2018. The data was collected from the National Stock Exchange database and other sources. The outcome of this study was to find out whether there is a relationship between gold and Gold ETFs. It was found out that Gold ETFs has more returns than the physical gold; Axis ETF performed the best among those Gold ETFs selected for the study. This study will be beneficial for the market researchers and investors who find the best opportunities in the Gold ETFs.

Price formation in Indian gold market: Analysing the role of gold Exchange Traded Funds (ETFs) against spot and futures markets

The paper examines the relative efficiency of gold Exchange Traded Funds (ETF) against spot gold and gold futures in the Indian scenario, using a series of conventional and threshold cointegration statistics. The results reveal that gold ETFs and spot gold, as well as gold ETFs and gold futures, converge together in the long run. Also, movements in spot prices and futures prices are found to lead those in ETF prices, thus, providing scope for executing profitable trading strategies in ETFs. The study further explores the probable reasons that might account for the relative inefficiency observed in ETF prices.

Revisiting the roles of gold: Does gold ETF matter?

This study investigates whether the role of gold changes due to the introduction of gold exchange-traded funds (ETFs) using sample data of seven countries in which physically-backed gold ETFs have been issued. The results show that the traditional roles of gold do change after the introduction of gold ETFs, particularly in the corresponding stock markets. The functions of hedge and safe haven provided by gold wear off during the post-ETF period in stock markets. In currency markets, however, gold still serves as a hedge and safe haven asset, and such effects become stronger during the post-ETF period. Moreover, gold ETFs play a role of relative strong safe haven than the physical gold does while the leading (lagged) stock returns extremely decline. Like the purposes of using physical gold assets, gold ETFs also provide hedge and safe haven effects to the exchange rate risks. Therefore, we might confirm that physical gold could be largely replaced by gold ETFs and investors could utilize gold ETFs to avoid potential risks in financial markets.

Testing the Tracking Efficiency of Commodity Exchange Traded Funds (ETFs) across the Bearish and Bullish Market Regimes: Evidence from Indian Gold ETFs

ABSTRACTCommodity exchange traded funds (ETFs) help investors gain exposure to the underlying commodity in digital form. The present article attempts to examine the performance characteristics of 12 gold ETFs in India across the bear and bull markets. ETFs’ sensitivity to their underlying asset (gold prices) is observed to be lower during the bearish market regime, and, as such, the tracking error is found to be higher during the bearish market regime. Further, volume is reported to bear a significant positive impact on the tracking ability of ETFs whereas volatility and pricing deviation are found to negatively impact the tracking ability of ETFs.

Gold Exchange Traded Funds: A Perfect Subtitute of Physical Gold

Gold Exchange Traded Funds: A Perfect Subtitute of Physical Gold

Market efficiency of gold exchange-traded funds in India

BackgroundGold exchange-traded funds, since introduction, are primarily aimed at tracking the price of physical gold in the financial market. This, a category of exchange-traded funds, whose units represent physical gold, is traded on exchanges like any other financial instrument. In the Indian financial market, gold exchange traded funds were introduced a decade ago to facilitate ordinary households' participation in the bullion market. They were also designed to assist in the price discovery mechanism of the bullion market.Presentation of the hypothesisIn this paper, it is attempted to check if one of the constituents of price discovery mechanism, informational efficiency, has been achieved in gold exchange-traded funds’ market. Information efficiency becomes evident only when all available information is reflected in the market price of the instrument.Testing the hypothesisTherefore, in order to assess the weak-form efficiency of the gold exchange-traded funds market, the daily returns of five gold exchange-traded funds traded on the Indian Stock Exchange over the period March 22, 2010, to August 28, 2015, were used. The non-parametric runs test, the parametric serial correlation test, and the augmented Dickey-Fuller unit root test are employed.Implications of the hypothesisThe test results provide evidence that the efficient market hypothesis does not hold for the gold exchange-traded funds’ market in India. Further, the test results address several underlying issues with respect to price discovery in the market under study and suggest that the Indian market for this derivative is not weak-form efficient. Hence, the factors affecting gold exchange traded-funds’ market warrant the attention of the country’s regulatory bodies, as appropriate legislation in support of market efficiency is needed.