Best Gold ETFs: Top Funds For Gold Investing

Traders have some ways to realize publicity to gold, from instantly buying gold bullion to extra oblique strategies like proudly owning shares of public mining firms. Whereas some funds make investments instantly within the bodily metallic, others handle a portfolio of gold-related shares.

To get in on the motion, essentially the most environment friendly method for retail buyers is thru exchange-traded funds (ETFs) with gold as their underlying asset. Gold ETFs are handy as a result of they are often bought by way of most on-line brokers, typically at a low price. Right here’s a take a look at among the most generally held gold ETFs.

High gold ETFs

Bankrate chosen its prime funds based mostly on the next standards:

• U.S. funds that seem in ETF.com’s screener for gold or supplies ETFs
• Property underneath administration of at the least $800 million
• Expense ratios underneath 0.60 p.c

(ETF efficiency knowledge talked about beneath is as of Could 21, 2025.)

SPDR Gold Shares (GLD)

GLD is among the hottest ETFs obtainable. The fund invests in bodily gold, and its efficiency is very correlated to gold spot costs.

• 2025 YTD efficiency: 25.4 p.c
• 5-year annual return: 13.0 p.c
• Expense ratio: 0.40 p.c

iShares Gold Belief (IAU)

One other fashionable choice, this fund additionally tracks the spot worth of gold by investing in gold bars held in vaults world wide. However in comparison with GLD, its expense ratio is decrease.

• 2025 YTD efficiency: 25.5 p.c
• 5-year annual return: 13.2 p.c
• Expense ratio: 0.25 p.c

iShares MSCI International Gold Miners ETF (RING)

RING is a well-liked ETF within the world mining sector. This BlackRock ETF offers you publicity to all the key worldwide firms that derive most of their revenues from gold mining — and with an expense ratio decrease than different related funds.

• 2025 YTD efficiency: 45.5 p.c
• 5-year annual return: 8.0 p.c
• Expense ratio: 0.39 p.c

VanEck Junior Gold Miners ETF (GDXJ)

This fund invests in overseas small-cap mining firms that generate at the least half of their revenues from gold and silver. Almost 50 p.c of those firms are based mostly in Canada.

• 2025 YTD efficiency: 45.7 p.c
• 5-year annual return: 6.9 p.c
• Expense ratio: 0.51 p.c

GraniteShares Gold Belief (BAR)

This ETF invests instantly in gold held in a London vault and overseen by ICBC Normal Financial institution, and its worth ought to monitor the spot worth of the valuable metallic comparatively intently.

• 2025 YTD efficiency: 25.5 p.c
• 5-year annual return: 13.3 p.c
• Expense ratio: 0.175 p.c

Causes to put money into gold

Traders might discover gold to be a lovely funding for quite a lot of causes.

• Diversification: The most typical cause retail buyers purchase gold ETFs is diversification. Proudly owning numerous investments minimizes the danger of getting an excessive amount of publicity to a single asset.
• Decrease correlation to the inventory market: Traditionally, gold has had a low correlation to the inventory market, smoothing a portfolio’s returns. For instance, through the monetary disaster in 2008, gold costs rose 2 p.c whereas the S&P 500 index plunged 37 p.c. Extra lately, gold costs have spiked this 12 months within the wake of recession worries and tariff tensions.
• Hedge towards inflation: Gold might also function a hedge towards inflation as a result of it’s carried out effectively during times of excessive inflation previously, significantly the Nineteen Seventies. However there’s no assure gold will enhance alongside inflation over time.
• Secure haven asset and retailer of worth: Moreover, in occasions of political or social turmoil, buyers typically flock to gold as a protected haven, forsaking extra risky belongings.

Disadvantages of shopping for gold

However gold just isn’t with out its flaws as an funding both, together with the next causes.

• Risky worth within the quick time period: Whereas gold has retained its worth over time, the commodity has been inclined to erratic strikes within the quick time period. In 2021, many gold funds decreased in worth as buyers bought gold to buy riskier belongings amidst a growth within the inventory and cryptocurrency markets. Now, gold returns have began to select again up as buyers are turning again to the metallic for stability. Traders must be cautious of those swings in worth as market circumstances change.
• Exhausting to estimate the worth of gold: Some buyers additionally argue that, in contrast to shares, valuations for gold will be tough to estimate, because it doesn’t have earnings or money circulation metrics to investigate.
• Gold doesn’t provide money circulation to buyers: Gold doesn’t generate money circulation, a turn-off for these on the lookout for passive revenue like dividends.
• Could also be taxed as a collectible: Relying on the kind of gold asset you personal, income from promoting gold ETFs will be taxed as collectibles quite than extraordinary investments, which means it’s possible you’ll pay the next tax fee than the extra enticing long-term capital positive aspects fee. These guidelines solely apply for holdings outdoors tax-advantaged accounts like a 401(okay) or an IRA.
• A lot better long-term returns elsewhere: Whereas gold might carry out effectively over shorter durations, buyers can discover higher long-term returns by investing in a diversified portfolio of shares or a inventory ETF. That’s one key cause to not purchase bodily gold as a part of Costco’s promotion.

How one can purchase gold ETFs

When choosing gold ETFs, resolve whether or not you need publicity to bodily gold or public firms concerned in gold mining. These two asset courses have totally different threat profiles.

As you intend your funding technique, listed below are 4 steps to information you:

1. Decide your monetary objectives: The investments you select rely on what you are attempting to realize. For instance, somebody saving to purchase a second dwelling can have a distinct funding technique from somebody saving for his or her baby’s faculty schooling. So at all times let your monetary goals drive your decision-making.
2. Analysis gold funds: When choosing commodity ETFs, take note of elements such because the fund’s efficiency, expense ratios, prime holdings and belongings underneath administration. Traders can discover this data in a fund’s prospectus.
3. Define your asset combine: Earlier than investing, do a listing of all of your belongings, and calibrate your portfolio accordingly. Bear in mind, the secret’s to stay diversified.
4. Know what you personal: By periodically reviewing your investments, you possibly can take cost of your funds and make any needed changes. Leverage any free assets out of your dealer, akin to assembly with a monetary planner, and at all times ask questions. In the end, there’s no such factor as a hands-off funding.

You should purchase gold ETFs at any of the very best brokers for inventory buying and selling.

Backside line

Gold has maintained a coveted standing in society, and for buyers gold serves as a portfolio hedge towards market volatility and geopolitical unrest.

Notice: Giovanny Moreano wrote a earlier model of this story.

Editorial Disclaimer: All buyers are suggested to conduct their very own unbiased analysis into funding methods earlier than investing choice. As well as, buyers are suggested that previous funding product efficiency isn’t any assure of future worth appreciation.