Why the sudden spike in interest in gold ETFs?
Oct 29, 10:10

It must seem curious--retail investors making a beeline for gold ETFs, even as the metal prices remained subdued with economies recovering well from the pandemic. Retail investor folios in gold ETFs went up by 35% in the September quarter, the highest rise among all MF categories. Folios in equity ETFs (29%) and index funds (21%) also grew as more investors increasingly shifted to passive funds, partly on the back of new launches. The reasons for this strange excitement around gold ETFs are rising equity markets and higher inflationary expectations. Festive season also nudges retail investors towards the yellow metal.

Gold ETFs glitter