Ensure your investment decisions match your financial objectives, risk tolerance, and time frame. And before you dive in, consider consulting a financial advisor to fine-tune your strategy. Physical gold ETFs offer direct exposure to gold prices without company-specific risks. Mining funds provide leverage to gold price movements through stock performance. Gold ETFs are exchange-traded funds that give investors exposure to gold without having to directly purchase, store and resell the precious metal. Some gold ETFs track the price of gold, while others invest in companies in the gold-mining industry.

Are there any gold ETFs that are physically backed by gold?

Schwab’s platform allows investors to compare gold ETF performance across different providers. Gold ETF investors often ask about top performers for long-term growth, dividend opportunities, and physical backing options. The largest gold ETF requires 100,000 shares (approximately $12 million) for gold delivery requests. Physical gold ETFs like PHYS may have different tax treatment than standard ETFs.

Is it safe to invest in gold ETFs?

Qtrade has topped the list of the best brokerages in Canada several times over the years. And if you want access to exceptional customer service, this broker is for you. HGGG is a Canadian gold ETF that invests in 20 of the world’s largest gold mining companies in an equal-weighted portfolio.

BMO Equal Weight Global Gold Index ETF

VanEck Vectors Gold Miners ETF is the largest ETF focused on holding shares of major gold mining stocks. That makes it the best gold ETF for those who want to invest in mining companies as a way to play the gold market. Incepted in 2010, HDFC Gold ETF provides investors with a reliable way of investing in gold.

  • Gold ETFs are passive investment instruments linked to current physical gold prices and invest in gold bullion.
  • A gold ETF is a passive investment that aims to reflect the price movement of gold.
  • It’s up by more than 30% year-to-date, but it comes with a high expense ratio.
  • As of June 2025, the Direxion Daily Gold Miners Index Bull 2X Shares (NUGT) has the highest year-to-date return at 53%.
  • Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.

Best Gold ETFs: Top Funds and Strategies for 2025

Investors can purchase gold ETFs from other providers through Fidelity brokerage accounts. Investors seeking Vanguard’s low-cost approach to gold exposure often use competitors like IAU or GLD. These funds offer similar expense ratios to what Vanguard might provide. Gold mining ETFs can deliver higher returns than gold prices when companies expand production or pay dividends. However, they also carry more downside risk during market downturns. Physical gold funds typically have lower fees than mining stocks funds.

  • Instead, you can buy and sell gold ETFs just as you would trade in stocks in exchange for cash.
  • NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
  • During the 1970s inflation crisis, gold prices jumped from $35 to over $800 per ounce.
  • The fund has given annual returns of 22.67% in 1 year and 13.98% in 5 years time frame.

iShares Gold Bullion ETF

Besides the return the reference date on which you conduct the comparison is important. In order to find the best Gold ETF/ETC, you can also perform a chart comparison. The content on this blog is for educational purposes only and should not be considered investment advice. While we strive for accuracy, some information may contain errors or delays in updates. LIC MF Gold ETF, HDFC Gold ETF, ICICI Gold ETF, and Nippon Gold ETF are among the popular Gold ETFs. As per the latest data available LIC MF Gold ETF, UTI Gold ETF, ICICI Pru Gold ETF have given the highest returns.

If you want to hold one of those best gold etf ‘babies’ in your hands, you can redeem your ETF unit for physical gold bullion (starting at a weight of between 350 and 430 troy ounces). ZGD tracks the Soloactive Equal Weight Global Gold Index and aims to replicate its performance (net of expenses) by investing in gold mining equities. Yet, most investing & trading platforms in India have remained more or less the same over the past decade.

The iShares Gold Trust (IAU) gives investors direct exposure to gold. You don’t need to worry about how gold mining companies perform or any financial variations. Gold mining ETFs will have different results than those that only track the price of gold. If you buy an ETF that follows gold miners, you must consider the financial performance of each company. If you appreciate the somewhat leveraged returns gold miners provide, you can buy them via the iShares MSCI Global Gold Miners ETF (RING).

I say “exposure” because the ETF’s actual holdings are primarily U.S. Treasury securities and money market instruments, which are used as collateral to back their futures positions. If a miner spends $1,500 to produce one ounce of gold, and it sells for $2,000 per ounce, great!

The most important factors when choosing gold ETFs include expense ratios, assets under management size, tracking accuracy, and fund management approach. These elements directly impact investor returns and trading experience. When investors buy shares, they gain exposure to gold price movements without handling physical gold. Gold exchange-traded funds are investment vehicles that provide exposure to gold without requiring investors to buy and store physical metal.

Profitability, Growth, Valuation, Liquidity, and many more filters. Search Stocks Industry-wise, Export Data For Offline Analysis, Customizable Filters. Investors can purchase gold ETFs from other providers without paying commissions. Investors can buy shares instantly without worrying about storage or insurance. Unlike paper money, gold cannot be printed or devalued by policy decisions. Physical gold requires secure storage facilities and insurance coverage.

Is GLD 100% backed by gold?

As each unit of the Gold ETF represents one gram of physical gold, its price as well is directly linked to gold. When the price of gold increases, your investment value also increases, and vice versa. So this is the closest investors can do to directly own gold without taking physical delivery. However, it does not provide any yield, as it is not an investment in productive companies’ stocks. This brokerage platform supports ETFs, stocks, options, FX, mutual funds, precious metals, and more. It is Canada’s best stock trading app, and charges no trading commissions to buy and sell stocks and ETFs.