Gold ETF rises 40% in last 12 months; understand what investment is

In the market’s alphabet soup, do you know what ETF is? Paper linked to the value of gold, for example, has appreciated by 40% in the last 12 months, following the rise in the gold metal.

ETFs are Index funds. And they were the subject of Investor Talk and Money Review this week, explained by Bernardo Pascowitch.

This and other economic issues are on the program and help make better decisions in the market.

ETFs are mutual funds that seek to replicate the performance of indexes. These can range from stock exchanges, such as Ibovespa and S&P500, to variations in other assets, such as gold, bitcoin and even fixed income securities.

“The great advantage of the ETF is that you can, with very little money, automatically invest in hundreds of different assets. For example, the S&P500 ETF: if you were to individually buy more than 500 companies, this would be an almost impossible job. At B3, you can buy shares of an ETF with just a few reais and have exposure to all these assets”, explains Pascowitch.

B3 currently negotiates different ETF shares for investors in the country.

“You have access to international assets, cryptocurrencies, fixed income, local assets from the Brazilian Stock Exchange itself”, adds the presenter of the Money Review.

Insights of the Week

Index funds were once again commented on in the Insights of the Week.

Thiago Godoy, the “Financial Daddy”, recommended investing in securities that replicate the performance of gold.

“Gold continues to be a good option. With the movement of the dollar, interest pressure, risk, gold is always a good option. You, an individual investor, can invest in gold through the two ETFs we have on the stock exchange: GOLD11 and GOLX11”, he recommends.

The first ETF mentioned by Godoy had an increase of more than 40% in the last 12 months, according to information from B3.

B3 ETF performance

See the performance of some of the most famous ETFs on the Brazilian Stock Exchange in the last 12 months and the indices they replicate:

  • GOLD11 (gold): +40,04%;
  • HASH11 (cryptocurrencies): -26,46%;
  • IVVB11 (S&P500): +8,09%;
  • NASD11 (Nasdaq): +13,89%;
  • BOVA11 (Ibovespa): +36,69%;
  • SMAL11 (Small Caps): +19,18%.

Money Review

Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the “Financial Daddy”; Bernardo Pascowitch, founder and CEO of Yubb; and Marilia Fontes, founding partner of Nord Investimentos; and proposes a light, direct and uncomplicated approach to topics related to financial education and investments.

The program will address the main news and movements in the economy every week with the lightness of an informal conversation — like a review between friends, in a bar or after football — but without losing the analysis and content.

The Money Review airs every Friday, at 7pm, on the channel CNN Money no YouTube.

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