Research On The Factors Affecting The Performance Of China’s Gold ETFs

In today’s diversified investment portfolio,gold ETFs are undoubtedly a product worth investing in in order to maintain and increase value,optimize investment portfolios,and diversify investment risks.In order to better understand gold ETFs,explore the impact of various factors on the performance of gold ETFs,and provide reasonable suggestions to fund managers and investors,it is essential to explore the factors affecting the performance of gold ETFs.This article first introduces the concept and characteristics of gold ETFs,then outlines the development of gold ETFs at home and abroad,then evaluates and analyzes the performance of gold ETFs.Finally,it studies the impact of internal and external factors on fund performance of gold ETFs,and empirically analyzes the impact of external factors on the net worth and share size of gold ETFs.Through performance evaluation and analysis of the returns,risks,and fund management level of gold ETFs,it is found that due to the high proportion of gold ETFs invested in gold spot contracts,they are almost identical to gold in terms of returns and risks,and there may be subtle differences between different gold ETFs due to different investment ratios in gold.In terms of fund management,the tracking error of gold ETFs is all less than 1%,achieving tracking of gold returns.The analysis of gold ETF performance is divided into internal and external factor analysis and share size change analysis.The internal factors are divided into three levels:the fund itself,the company,and the fund manager.It is found that gold ETFs with larger asset sizes have larger transaction volumes and volumes,and the fund has higher activity,and investors are more inclined to invest;The asset size and duration of establishment of a fund company can provide a more mature training method and a more sound risk control system for fund managers;Different investment portfolios of fund managers can lead to different fund returns.In terms of external factors,a VAR model was established by selecting interest rates,exchange rates,CPI,M2,crude oil prices,and the China Securities 500 Index.Granger causality test,impulse response analysis,and variance decomposition were conducted to study the impact of various factors on the net worth of gold ETFs.It is found that the net value of gold ETFs is most affected by M2 and interest rates.The money supply is positively correlated with gold ETFs in the early stage,and negatively correlated with gold ETFs after inflation caused by currency issuance.Interest rates have a two-way impact on gold ETFs.In terms of share size changes,Cathay Pacific Gold ETFs perform differently from other gold ETFs and do not exhibit a positive correlation with gold prices.Finally,based on the analysis of internal and external influencing factors and the analysis of share size,the following suggestions are proposed to regulatory authorities:1.Strengthen supervision of fund managers;2.Strengthen the disclosure of fund information;3.Strengthen fund compliance supervision.Suggest to fund managers:1.Reasonably increase the scale of fund assets;2.Adjust the investment portfolio according to market changes;3.Enable investors to fully understand gold ETFs;4.Enhance the core capabilities of investment research.Provide the following suggestions to investors:1.Fully understand the gold ETF;2.Pay attention to the influencing factors of gold ETFs;3.Choose the right entry time;4.Optimize investment portfolio.