What is an Exchange Traded Fund (ETF)?
Exchange-Traded Funds (ETFs), are funds you can trade just like a stock. ETFs / exchange-traded funds are thus an investment portfolio that can consist of shares, commodities or interest rates and can be bought and sold in real-time. This contrasts with a daily traded fund with only one closing price per day.
An ETF is an investment product that gives a diversified exposure to a sector, or an index, without the investor having to put together the portfolio himself. ETFs follow an underlying index, for example, the AuAg Gold Mining ETF tracks the AuAg Solactive ESG Gold Mining Index.
What are the different types of ETFs?
There are several types of ETFs
Equity ETFs - Follows an equity index, such as global corporations, small companies in Asia, etc.
Bond / interest rate ETFs - Contains interest-bearing instruments
Commodity ETFs - An effective way to access investments in commodities such as gold, silver, copper, lithium and oil. Under assets in an ETF can be derivatives or certificates that invest in the underlying asset.
Sustainability ETFs - Exchange-traded funds with an investment strategy that promotes sustainability and takes ESG factors into account.
How to buy an ETF and exchange-traded funds?
ETFs/Exchange-traded funds can be bought and sold in the same place as you trade shares. Swedish platforms that offer exchange-traded funds include, for example, Avanza and Nordnet. Banks also offer to trade in these funds. They are most easily found by searching for the ETF's name, ticker or ISIN code.
What does it cost to invest in ETFs?
The fee you have to pay to trade ETFs is usually lower than the fee for daily traded funds. The fee generally consists of two parts:
1. Brokerage is the fee you pay when you buy and sell ETFs. The same fee as when you buy and sell shares
2. The management fee is the current fee that covers costs for managing and operating an ETF. This fee is usually 0.2–0.8% and depends on how the ETF is constructed and its focus.
More information on a specific ETF fee can be found in the product fact sheet.
What is a Gold ETF?
A gold ETF is an exchange-traded fund that allows investors to invest in gold. As an investor in a gold ETF, you can get exposure to physical gold or the companies that extract gold, so-called gold miners. Through investment in a gold ETF, the investor can gain effective exposure to the price development of the precious metal without owning the physical commodity. An ETF with a focus on companies that extract gold contains several companies, which means that you get diversification and reduced risk of concentration. AuAg Gold Mining ETF has a portfolio containing 25 gold mining companies.
Why invest with AuAg Fonder
- AuAg offers funds that focus on providing exposure to precious metals and green tech elements. What they have in common is that these assets offer protection against monetary inflation and are necessary for the transition to a green world – trends that are highly topical today.
- AuAg's funds fit well into a portfolio of traditional assets as they have low covariation with equities in particular. AuAg manages the funds AuAg Silver Bullet and AuAg Precious Green as well as the exchange-traded fund AuAg ESGO ETF.
- AuAg ESG Gold Mining UCITS ETF (ESGO) offers exposure to an equilibrium basket of 25 ESG-screened companies active in the gold mining industry. The ETF follows the Solactive AuAg Gold Mining Index as an entrepreneur with a low ESG risk. The ETF can be traded on most stock trading platforms across Europe, and is listed on major European exchanges.