What is a gold ETF?

Gold ETFs are exchange-traded mutual funds that track the price of gold by investing either in gold-producing companies or in physical gold bullion, explains Investopedia. Gold ETFs allow investors to take a position on the price of gold without the necessity of handling and storing physical gold.

Gold ETFs have democratized gold investing, notes Commodity HQ. Because they trade just like stocks, gold ETFs give retail investors a level of access to gold markets that was once limited to futures traders. Gold is useful not only as a stand-alone investment but also as a hedge against other investments, particularly currency investments, notes Investopedia.