MEASURING RISK, RETURN AND REPLICATION: AN EMPIRICAL STUDY OF INDIAN GOLD ETFS

DOI: https://doie.org/10.65985/APER.2025509959

Authors:

Dhara Vora, Swara Kekatpure

Keywords:

Risk Management, Investment, India Stock Market, Gold ETFs

Abstract:

India is a developing economy. It has dense population with majority of middle-class people. However, the slow and steady economic growth, rising awareness and increasing financial literacy and digitalization have paved the ways to increase the investors. Gold remains one of the priorities for the investors in India. The present study aims to investigate the performance of selected Indian Gold ETFs over two distinct periods i.e. 2020 to 2024 and 2022 to 2024 using various financial metrics. It also examines tracking error in relation to physical gold prices. The findings reveal that while some ETFs outperform in terms of return and stability, others show high volatility and significantly long-term tracking deviations. The study highlights the need for comprehensive evaluation of financial metrics and tracking error ability when selecting gold ETFs for investment purposes. The study is significant from risk management and investment perspectives.

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