What is a gold ETF?

5 minutes read

What is a gold ETF?

There are different ways to invest in gold: physical gold, gold ETFs and more generally paper gold. We will see what are the properties of gold ETFs in order to help you make the right choice.

Key takeaways

Gold ETFs, also known as paper gold, are one of the ways to invest in gold. It is important to consider the pros and cons of these assets before buying them.

While gold ETFs are convenient for short-term trading and can be easily converted into cash, they could carry counterparty risks. 

When you buy gold ETFs you don’t really own gold. In reality, the institution that sold you an ETF share might only hold a fraction of your asset’s value in physical metal.


Get the Spotlight

The free newsletter helping you understand how to build your wealth.