Gold and Gold Mining ETF
What is a gold and gold mining ETF?
An ETF (Exchange Traded Fund), is a fund you can trade just like a stock. An ETF is thus an investment portfolio that can consist of, for example, shares, commodities or interest rates, and can be bought and sold in real time. This is in contrast to a daily traded fund that only has one closing price per day.
An ETF is an investment product that enables a diversified exposure to a sector, or an index, without having to put together the portfolio yourself.
An ETF follows an underlying index, e.g. follows the gold mining company ETF AuAg ESGO ETF index AuAg Solactive ESG Gold Mining Index.
How to buy an ETF?
ETFs can be bought and sold in the same place as where you trade shares. They are most easily found by searching for the ETF's name, ticker, or ISIN code.
What does it cost to invest in an ETF?
The fee you have to pay to trade ETFs is usually lower than the fee for daily traded funds. The fee usually consists of two parts:
Brokerage - the fee you pay when buying and selling an ETF. The same fee as when you buy and sell shares
Management fee - Ongoing fee that covers the costs of managing and operating an ETF. This fee is usually in the range of 0.2-0.8% and depends on how the ETF is constructed, and its focus.
More information about a specific ETF's fees can be found in the product fact sheet.
What are the different types of ETFs?
There are several types of ETFs
Equity ETFs - Follows an equity index, e.g. global large companies, small companies in Asia, etc.
Bond / Interest rate ETFs - Contains interest-bearing instruments
Commodity ETFs - A convenient way to access investments in commodities such as gold, silver, copper, lithium, and oil. Underlying assets in the ETF can be derivatives, or certificates such as.
Sustainability ETFs - Have an investment strategy that promotes sustainability and takes ESG factors into account.