A Gold ETF, or Gold Exchange-Traded Fund, is a type of investment vehicle that provides investors with a convenient and efficient way to gain exposure to the price movements of gold. Instead of physically owning and storing gold, investors can buy shares of a Gold ETF, which represents a certain amount of gold held by the fund. This allows investors to benefit from the price appreciation of gold without the complexities of owning, storing, and safeguarding the physical metal.

Gold ETFs are traded on stock exchanges, just like stocks, and their prices fluctuate throughout the trading day based on the market demand and supply for these shares. These funds aim to closely track the performance of the underlying gold price, often by holding physical gold bullion or derivatives contracts linked to gold.

Investing in a Gold ETF provides several advantages, including liquidity, as they can be bought or sold during regular trading hours; cost-effectiveness, as investors avoid expenses related to physical gold ownership; and diversification, as gold often behaves differently than traditional financial assets, potentially acting as a hedge against market volatility or currency fluctuations.

Overall, Gold ETFs offer a flexible and accessible means for investors to incorporate the inherent value and potential benefits of gold into their portfolios without the logistical challenges associated with owning physical gold.