A Commodity ETF is What?
Tracking the price of a physical good like gold, silver, oil, or agricultural products, a commodities ETF (Exchange-Traded Fund) is. ETFs allow investors to be exposed rather than purchasing these products straight-forward. They provide an easy approach to invest in commodities and are sold on the stock exchange much as shares.
Why Indians Are Selecting Commodity ETFs
Indians have been gold and silver investors for always. Many are now looking at the larger commodity ETF list to diversify their portfolio given increasing awareness of and access to online platforms. These money enable one to fight market volatility and inflation.
Comforts of Commodity ETFs
- Easy to buy and sell; traded on NSE and BSE like shares.
- There is no physical storage; gold or silver is not needed kept at home.
- Low Investment: Start with little sums.
- Diversification: Give your portfolio of investments variation.
- Usually, commodities increase with inflation. This is known as an inflation hedge.
These characteristics appeal to Indian retail investors about the commodity ETF list.
India’s Popular Commodity ETFs
Currently on the Indian market are the following choices:
- Gold ETF from Nippon India
- Tracks domestic gold prices.
- Highly sought after among Indian investors.
- Tracks domestic gold prices.
- ETF Gold for HDFC
- Presents simple access to gold.
- Excellent for long-term preservation.
- Presents simple access to gold.
- ETF Prudential Silver ICICI
- Tracks silver values.
- Innovative but attracting to investors.
- Tracks silver values.
- ETF of Aditya Birla Sun Life Gold
- Dependable gold investing choice.
- Traded on both NSE and BSE.
- Dependable gold investing choice.
- Index Gold ETF
- One of the more recent choices available within the gold ETF range.
- One of the more recent choices available within the gold ETF range.
Mostly focusing on gold and silver, these are the most often used names on the Indian commodities ETF list.
Accessible Through International Platforms: Global Commodities ETFs
Here are some worldwide ETFs accessible through platforms allowing foreign investments, should you be open to international investing:
- SPDR Gold Shares (GLD) – One of the biggest worldwide, follows gold price.
- iShares Silver Trust (SLV) – Provides silver exposure.
- Invesco Database Commodity Index Tracking Fund (DBC) – Tracks a broad spectrum of commodities, including oil, metals, and grains.
- United States Oil Fund (USO) – Emphasized on crude oil prices.
- iShares S&P GSCI Commodity-Indexed Trust (GSG) – Coverage of several commodities.
More diversity is offered by these worldwide choices than by the small Indian commodity ETF list.
Methods of Investing
Invest in Indian commodities ETFs with:
- Zerodha, Groww, Upstox, or any broker with a Demat account.
- Platforms for mutual funds.
- Direct AMCs’ websites.
Global ETFs call for an account with a platform that supports foreign stocks such as Vested, INDmoney, or ICICI Direct Global.
Closing Notes
A well-researched list of commodities ETFs guides your fund selection for particular requirements. ETFs give a modern, flexible, and simple approach to invest whether your search is for gold safety or more general commodity exposure. Now, as an Indian investor, you have local and international choices; start small, keep consistent, and wisely diversify.