Gold BEES vs Gold ETF: Which Is Better?

Gold is a traditional investment of every Indian household, as it is a safe way to save and invest and a cultural symbol of prosperity. So, in the modern era, the investor has a range of digital options to gain exposure to gold without holding it physically. There are two popular instruments, which are Gold BeES vs Gold ETF. Which one is better? Let’s have a look.

Gold BeEs

A gold BeEs stands for Gold Benchmark Exchange Traded Scheme is a kind of exchange-traded fund that closely tracks the price of physical gold. This is launched by Nippon India Mutual Fund, which is listed and traded on the NSE.

Key Features:

The underlying assets are physical gold of 99.5% purity.
They have an expense ratio of around 0.5% - 1%, which is relatively low.
They offer a minimum investment of one unit, which is approximately 1 gram of gold.
The liquidity is high, which can be traded throughout market hours. The trading platform of Gold BeES is NSE or BSE.

Gold ETF

A Gold ETF stands for Gold Exchange Traded Fund, which is a mutual fund that invests in physical gold and is traded on the stock exchange, so its aim is to reflect the performance of the gold price in the domestic market.

Key Features:

They have an expense ratio between 0.3% and 1%.
They have underlying assets, where physical gold and sometimes gold-related assets.
The liquidity is high, with real-time buy/ sell during trading hours.
The minimum Investment is one unit, which is equivalent to 1 gram of gold. The trading platform for Gold ETF is NSE or BSE.

Key Difference Between Gold BeES vs Gold ETF

Here are the differences between Gold BeES vs Gold ETF:

Feature	Gold BeES	Gold ETF
Full Form	Gold Benchmark Exchange Traded Scheme	Gold Exchange Traded Fund
Branding	The branding of this is a specific product name (Gold BeES)	The branding is a generic category (Gold ETFs)
Issuer	The issuer of this instrument is Nippon India Mutual Fund.	The issuers of this instrument are Multiple issuers (SBI, HDFC, ICICI, etc.).
Tracking Error	The tracking error is slightly lower due to a single issuer focus	This varies by fund house
Expense Ratio	It's around 0.5%–1%	It varies by issuer (0.3%–1%)
Availability	This is only one Gold BeES scheme	This is Multiple Gold ETF options available.
Historical Returns	The historical return is in line with gold prices	This depends on fund performance

Conclusion

In Conclusion, both Gold BeEs and Golden ETF iarebest their own ways, so if you choose Gold BeEs, then you want a trusted, time-tested gold ETF, or you have. Value high liquidity and the narrow spread. On another hand, if you choose Gold ETFs, then you want to compare the expense ratios and performance across different fund houses. We hope our blog on Gold BeES vs Gold ETF.

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Saniya

I am a writer, and this sentence speaks louder than anything, I love to play with words because I have a passion for writing easy and good-quality content that reflects simplicity. Readers like content that is straightforward with simple language. My priority has always been to deliver content that connects with the reader.

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