Why Gold and Silver ETFs Trade at Different Prices Despite Tracking Same Metals
Gold and silver ETFs trade at different prices despite tracking the same metals due to structural factors rather than performance differences. Price variations include silver ETFs ranging from Rs. 31.23 to Rs. 306.55 and gold ETFs from Rs. 131.51 to Rs. 132.42 per unit. Key factors causing these differences include unit structure and NAV design, expense ratios ranging from 0.40-0.56% for silver and 0.59-0.70% for gold ETFs, tracking errors between 0.23-0.58%, and supply-demand dynamics affecting market prices.
Gold and silver ETFs trade at different prices despite tracking the same metals due to structural factors rather than performance differences. Price variations include silver ETFs ranging from Rs. 31.23 to Rs. 306.55 and gold ETFs from Rs. 131.51 to Rs. 132.42 per unit. Key factors causing these differences include unit structure and NAV design, expense ratios ranging from 0.40-0.56% for silver and 0.59-0.70% for gold ETFs, tracking errors between 0.23-0.58%, and supply-demand dynamics affecting market prices.
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