Now Reading: Gold ETFs slip 3-month but return over 50% in 1 year
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Gold ETFs slip 3-month but return over 50% in 1 year
Gold exchange-traded funds (ETFs) have recorded negative returns over the past three months, with the top five schemes clustered within a 0.12 percentage point range. The Wealth Company Gold ETF posted the best three-month return at -2.33 per cent, followed by Tata Gold ETF (-2.43 per cent), Bandhan Gold ETF and 360 ONE Gold ETF (both -2.44 per cent), and Mirae Asset Gold ETF (-2.45 per cent), according to data from Value Research cited by Livemint.
The short-term decline contrasts with strong one-year performance. Most gold ETFs delivered returns between 52 and 54 per cent over one year, with Aditya Birla Sun Life Gold ETF leading at 53.25 per cent. The Wealth Company Gold ETF also led six-month returns at 1.42 per cent.
Despite the price correction, investment demand for gold ETFs remained positive. Business Today reports that gold ETFs attracted an estimated Rs 1,179 crore in net inflows during the first two weeks of August, following Rs 1,560 crore in July. Gold ETF holdings rose by one tonne to 120 tonnes in July, while assets under management increased two per cent month-on-month to Rs 1.73 lakh crore. A further 57,000 folios were added in July, taking total gold ETF accounts to 1.25 crore.
Indian Opinion Analysis
Both Livemint and Business Today report the same underlying data but frame it differently. Livemint leads with negative three-month returns, emphasising short-term consolidation within a strong long-term trend. Business Today leads with continued inflows and rising investor accounts, highlighting sustained demand despite the price dip. Neither outlet adopts a pro-government or critical stance, both are neutral-report. A careful reader should note that three-month losses of around 2.4 per cent are modest compared with one-year gains of over 50 per cent, and that inflows remained robust in August. The key figure to watch is whether gold prices sustain their August rebound, which could flip the three-month return column positive by September.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), businesstoday.in (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
