The Union Gold ETF, managed by Union Asset Management Company Private Limited, aims to replicate the domestic price of physical gold, offering a passive investment strategy focused on gold returns.

Utilizing a replication approach, this ETF tracks the domestic prices of gold, aligning closely with its benchmark while maintaining a low tracking error of 0.95%.

With a substantial allocation of 97.6% in physical gold, the fund exhibits minimal diversification, primarily holding cash equivalents and repos, posing concentration risk to investors.

Over the past year, the ETF has delivered impressive returns of 42.3%, highlighting its effectiveness in tracking gold prices amid fluctuating market conditions.

The fund has a size of ₹163.4 Cr, features an expense ratio of 0.54%, and is managed by Vinod Malviya, who has 16 years of experience in the industry.