Numerous investors are looking to a gold ETF for a means of getting involved in the great gold bull market which has skyrocketed in price the last several years. Because of this, the selection of gold ETF’s to choose from are growing internationally. Especially, a booming locale for gold bullion ETF’s is India, and the quantity of these ETF’s should rise dramatically over the next few years. Currently there are six such ETF’s in existence with the five first ones started in 2007, and the sixth one commencing trading in the first part of 2009. Practically called the Tata Gold ETF, Tata started up their own gold ETF in December of 2009.

As currently the gold reserves of India equate to about 6 percent of all the gold on earth, it is obvious that the central bank of India values their gold reserves highly, especially because they have been growing their share in the last few years.

In 2009 Indian gold did superbly as an investment. It is not shocking that new gold ETF’s are starting up in the planet’s second most heavily populated country, since gold prices in India soared at a glorious 25 percent.

Tata Gold ETF is the most recent gold ETF that Indian offers, targeting parity with the net change of gold values at a simple 1:1 ratio, making this an non-leveraged fund.

As much as 90 percent of this fund’s holdings will be in tangible gold, since this is the truest method of following the return on golf valuations. The balance 10 percent of holdings will be pegged against a variety of financial instruments.

Including a continuous expense ratio of 2.5 percent of the fun anticipated, this fund is much like other gold ETF’s, as possessing great amounts of physical gold generally leads to higher expense ratios.

Investors should contemplate expanding their holdings to include this ETF fund, considering the widespread obsession in India with gold, and especially in light of the past impressive results. This unusually expensive ratio of fees to total when measured against other such funds in the US, Europe, and Australia is a downside of a gold ETF in India to consider. Perhaps greater competition in the field will begin pushing such fees down.

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