The expert spoke about exchange-traded funds for gold

Exchange-traded funds focused on gold (ETFs) are an investment tool that allows investors to acquire shares in a fund that invests in physical gold or gold assets, Alexander Schneiderman, head of sales and customer support at Alfa-Forex, told Izvestia on April 15.

"Gold is traditionally the most popular defensive asset. During a period of geopolitical and economic instability, those who want to save capital from falling stocks or currency volatility (which is now happening due to Donald Trump's protectionist policies) are moving into gold, so demand for gold and related instruments is growing," he explained.

According to him, the advantages of an exchange-traded fund for gold are its high liquidity, convenience of buying and selling. Unlike the traditional purchase of gold bullion, which is a low-liquid asset, ETFs provide more flexible investment conditions.

Among the advantages of the tool, the expert highlighted the absence of the need to store physical gold with the corresponding risks of its loss or theft. You also don't need to personally monitor the fluctuations. Exchange—traded funds are a liquid instrument, and you can sell your stake in an ETF at any time. For private investors with small capital, it may be important that the entry threshold for ETFs is relatively low.

"Among the disadvantages are broker management fees, which reduces profitability, possible fluctuations in gold prices (therefore, gold is usually considered as a tool for long—term investments), as a rule, the correction occurs during periods of relative economic stability. In addition, there are investors for whom physical ownership of gold is important," Schneiderman concluded.

The information in the material is not an investment recommendation.

From the big number: returns of up to 40% have led to a surge in CFA investments

Are blockchain-based bond analogs reliable

In January, it was reported that every second Russian surveyed draws up a financial plan for the year. This was stated in the results of the <url> financial marketplace research. At the same time, 45% of respondents said that they plan monthly expenses and income at the top level, reserving the right to adjust the strategy during the year.