Keywords
Abstract
Exchange Traded Gold Funds are units representing the value of physical gold and traded through recognized stock exchanges. As far as investors are concerned, it opens an avenue to trade in the gold bullion market without the necessity of taking physical delivery of gold. The Gold ETF gained wide popularity during volatile market conditions after the great recession in 2009, but gradually the investors began to divert their funds as the market strengthened after a great fall. This study is focused on the pricing of major Gold ETFs listed with the National Stock Exchange of India. It extensively covers the computation of returns of Gold ETFs from VWAP, assessing the beta coefficient, evaluating return under CAPM, and analyzing the result based on the study. The result shows that almost all ETF Gold schemes under study were overpriced.
