Fidelity’s Gold ETF works by giving you exposure to the price of physical gold without requiring you to buy or store the metal yourself.
It lets you invest in gold through a regular brokerage account.
Here is how it works:
-
The fund holds gold bars.
These bars are stored in secure vaults, and the ETF’s share price moves with the market price of gold. -
You buy shares just like a stock.
You can purchase or sell shares during market hours through Fidelity or any brokerage. -
Each share represents a small amount of gold.
You do not own specific bars but you do own a slice of the fund’s total gold holdings. -
Costs are low.
The fund charges an annual fee called an expense ratio, which covers storage and management. -
No delivery of gold.
You cannot redeem shares for physical gold, so this investment is for price exposure only.
In short:
Fidelity’s Gold ETF tracks the price of gold, trades like a stock, and gives you an easy way to add gold to your portfolio without dealing with storage or shipping.