Gold ETFs: List of 7 Best Gold ETFs to Invest in 2025
Looking for the best Gold ETFs to invest in 2025? Gold exchange-traded funds offer a secure and smart investment option for those who want exposure to the price of gold without the hassle of storing physical bullion.
A Gold ETF is a type of fund that primarily invests in physical gold or gold futures, aiming to track gold prices on global markets.
Top choices on the Gold ETF list include the SPDR Gold ETF (GLD), iShares Gold ETF (IAU), Vanguard Gold ETF, and SBI Gold ETF—each offering various benefits in terms of cost, liquidity, and returns. Some even qualify as the best gold ETF with dividend potential.
Gold ETFs are traded on stock exchanges, just like individual stocks, making them highly liquid and accessible via a brokerage account. They’re ideal for investors seeking convenience, security, and portfolio diversification in uncertain economic times.
Best Gold ETF List
SPDR Gold Shares (GLD)
SPDR Gold Shares (GLD) is one of the best gold ETFs and the largest in the world by assets. It tracks the price of gold bullion and is physically backed, meaning each share represents a portion of real gold. It’s ideal for investors seeking direct gold investment exposure without storing physical gold. With high liquidity and low tracking error, GLD is a top pick for those learning how to invest in gold through ETFs.
iShares Gold Trust (IAU)
iShares Gold Trust (IAU) is another leading name among the best Gold ETFs. It provides exposure to gold by holding physical bullion, making it a low-cost and reliable option for long-term gold investment. IAU has a lower expense ratio than GLD, appealing to cost-conscious investors. If you’re considering how to invest in gold without buying bars or coins, IAU is an efficient and convenient way to track the spot price of gold.
Aberdeen Standard Physical Gold Shares ETF (SGOL)
SGOL offers exposure to physical gold investment, with bullion stored in secure Swiss vaults. It’s one of the best Gold ETFs for investors seeking transparency and audited holdings. SGOL appeals to those who want to avoid geopolitical storage risks and value integrity in gold investment. If you’re researching how to invest in gold, SGOL is a trustworthy, low-cost fund that offers international bullion storage and easy trading on U.S. exchanges.
VanEck Merk Gold Trust (OUNZ)
OUNZ stands out among the best Gold ETFs because it allows investors to redeem shares for physical gold—a unique feature not offered by most ETFs. It combines the convenience of paper trading with the option of owning tangible metal. OUNZ appeals to investors interested in both gold investment and physical delivery, offering flexibility. For those wondering how to invest in gold while keeping the option of redemption, OUNZ offers the best of both worlds.
GraniteShares Gold Trust (BAR)
BAR is a modern, low-fee ETF that tracks the spot price of gold through physical bullion holdings. It’s one of the newer but fast-growing options among the best Gold ETFs, appealing to budget-conscious investors due to its ultra-low expense ratio. With vaults in London and detailed audits, BAR offers transparency and solid gold investment value. If you’re seeking minimal costs while exploring how to invest in gold, BAR is a strong contender.
Vanguard Gold ETF
While Vanguard does not currently offer a dedicated gold ETF backed by physical bullion, investors can gain indirect exposure to the gold market through Vanguard’s precious metals and mining funds.
These funds invest in gold mining companies rather than physical gold. It’s a good option for those looking for diversification within the mining and metals sector, though it may not track gold prices as directly as physical gold ETFs like GLD or SGOL.
SBI Gold ETF
SBI Gold ETF is one of India’s most trusted gold exchange-traded funds, offering investors a secure way to invest in physical gold without holding it.
Backed by 99.5% pure gold, this ETF tracks domestic gold prices and is ideal for Indian investors seeking portfolio diversification.
With high liquidity, low expense ratios, and easy trading on Indian stock exchanges, SBI Gold ETF stands as a strong choice for those looking to invest in certified gold securities.
Best Gold ETF with Dividends
1. VanEck Vectors Gold Miners ETF (GDX)
GDX doesn’t hold physical gold—it invests in leading gold mining companies like Barrick Gold and Newmont Corporation. Since these companies generate revenue and pay dividends, GDX provides regular dividend income to investors, making it one of the best gold ETFs with dividends. It’s ideal for those who want to benefit from both gold price appreciation and dividend payouts.
2. VanEck Vectors Junior Gold Miners ETF (GDXJ)
This ETF focuses on smaller, emerging gold mining companies. Although more volatile than GDX, GDXJ also offers dividend income, albeit at slightly lower and less stable yields.
Investors seeking high-growth potential along with some dividend benefit may consider this gold ETF with dividend opportunity.
3. iShares MSCI Global Gold Miners ETF (RING)
RING offers global exposure to gold mining firms and distributes dividends quarterly. It has a lower expense ratio compared to GDX and covers international miners, making it a solid choice for those seeking a dividend-paying iShares Gold ETF.
4. Sprott Gold Miners ETF (SGDM)
SGDM tracks gold mining companies with strong fundamentals and dividend potential. It uses a unique factor-based approach, targeting miners with high revenue growth and balance sheet strength. It’s considered one of the best gold ETFs with dividends due to its selective investment strategy.
Note that: Most physical gold ETFs like SPDR Gold Trust (GLD) or iShares Gold Trust (IAU) do not pay dividends, as they hold physical bullion and not income-generating assets. If you’re seeking dividend income, focus on gold miner ETFs instead.
How to Invest in Gold ETFs
Investing in Gold ETFs is a smart, secure way to gain exposure to gold prices without owning physical gold. Start by choosing a trusted broker or trading platform that offers access to your preferred gold ETF, such as SPDR Gold Shares (GLD) or SBI Gold ETF.
Open a demat and trading account, then search for the ETF’s ticker symbol. Review its expense ratio, holdings, and past performance.
Place your buy order just like you would for a stock. Always monitor gold market trends, stay updated with fund reports, and diversify your investment.
Gold ETFs are ideal for hedging against inflation and preserving wealth. Remember, long-term holding offers the best returns in a fluctuating gold market.
The Best Gold ETFs to Buy
When considering investing in Gold ETFs, it’s crucial to understand and evaluate different ETF options based on various factors such as expense ratios, liquidity, and tracking accuracy. Some of the best Gold ETFs to consider include:
SPDR Gold Shares (GLD): This is one of the largest and most known on the gold ETF market. It holds physical gold with the major aim being to reflect its price. It can easily be traded making it a popular choice among gold investors.
iShares Gold Trust (IAU): Just like GLD, iShares Gold Trust holds physical gold bullion with the intent to display its price. This is known for its lower expenses compared to GLD and other different competitors. This makes it an attractive choice for budget gold investors.
VanEck Vectors Gold Miners ETF (GDX): Unlike GLD and IAU, GDX does not hold physical gold but rather invests in shares of different gold mining companies. This offers investors leveraged exposure to the gold market and may offer higher returns and on the other with higher risks.
Aberdeen Standard Physical Gold Shares ETF (SGOL): This ETF is known for its emphasis on transparency and secure storage of physical gold, which is kept in Switzerland. SGOL is another viable option for investors seeking physical gold exposure.
Is Gold ETF a Good Investment?
Gold ETFs tend to be a good investment, particularly for those looking to hedge against inflation. They offer several advantages and among these include:
Gold ETFs carry a high liquidity level and hence are conveniently traded on major stock exchange markets, allowing investors to buy and sell shares easily in case they need immediate cash.
Gold ETFs are highly cost-effective investment options compared to buying physical gold. They come with lower transaction costs, and no storage fees, though they do have management fees.
For investors looking to diversify their portfolios, Gold ETFs provide a straightforward way to add gold exposure without having to face the complexities that come with handling physical gold.
However, the suitability of Gold ETFs as an investment depends on individual financial goals and market conditions. They may not provide the same level of tangible value as owning physical gold, and their performance is subject to fluctuations in the gold market and broader economic factors.
What is the Minimum Investment in Gold ETFs
The minimum investment required to buy Gold ETFs generally depends on the price of the ETF share and the brokerage platform you have chosen to use. For instance, if a Gold ETF is trading at $150 per share, purchasing one share would require an investment of at least $150 not forgetting to add the brokerage fees that will come with it.
Some Gold ETF brokers offer fractional shares offering investors an opportunity to purchase any chare of their choice depending on their financial needs. These offers make Gold ETFs flexible and hence more accessible to a wide range of investors.
Disadvantages of investing in Gold ETFs
While Gold ETFs offer many benefits, they also come with certain disadvantages:
No Physical Ownership: With gold ETFs, you typically do not have physical ownership of gold. Rather you own shares that represent gold. This may not be suitable for people who prefer holding physical gold hence discouraging them from investing in gold.
Expense Ratios: Although offered at relatively low rates compared to buying physical gold or other investments, Gold ETFs still come with management fees which can accumulate over time affecting investment returns most especially if the ETF performance has not met the expectations.
Market Risk: just like Physical gold, gold ETFs are as well affected by different conditions like gold price fluctuations, and the overall economic stability. This comes with a potential level of market that investors are required to beware of.
Counterparty Risk: For Gold ETFs that invest in futures contracts or other financial instruments rather than physical gold, there is an element of counterparty risk. This refers to the risk that the financial institutions involved may fail to meet their obligations.
Tax Considerations: The tax treatment of gains from Gold ETFs can be different from that of physical gold investments, potentially leading to less favorable tax outcomes depending on one’s jurisdiction.
How to Invest in Gold ETFs
By following these steps, you can efficiently invest in Gold ETFs, gaining exposure to gold while enjoying the ease of trading on financial markets.
Research and Choose a Gold ETF: Start by researching various Gold ETFs to find one that fits your investment goals. Popular options include SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), which hold physical gold bullion. Consider factors like the ETF’s expense ratio, liquidity, and how closely it tracks the price of gold.
Open a Brokerage Account: To invest in Gold ETFs, you need a brokerage account. Choose a reputable brokerage firm that offers access to ETFs. Many online brokers allow you to open an account with minimal initial deposits and provide tools to research and trade ETFs.
Deposit Funds: Once your brokerage account is set up, deposit funds into the account. You can transfer money from your bank account or other investment accounts. Make sure you have sufficient funds to cover the cost of the ETF shares you wish to purchase, including any transaction fees.
Place Your Order: Log into your brokerage account, search for the Gold ETF you’ve selected, and place an order. You can choose to buy a set number of shares or invest a specific dollar amount. Use market or limit orders based on your preference.
Monitor Your Investment: After purchasing, keep an eye on your Gold ETF investment. Track its performance, review any changes in the gold market, and adjust your investment strategy as needed.
Gold ETF RETURNS
Gold ETFs aim to mirror the performance of gold, providing investors with returns linked to the price movements of the precious metal. Their returns depend largely on the underlying gold price, which can fluctuate based on factors such as economic conditions, inflation rates, and geopolitical events.
Gold ETFs that hold physical gold bullion, like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), typically offer returns that closely track the spot price of gold. Their performance is reflected in the daily changes in gold prices. For instance, if gold prices rise, the value of the ETF increases proportionally, and vice versa.
On the other hand, Gold ETFs that invest in gold mining companies, such as VanEck Vectors Gold Miners ETF (GDX), can exhibit higher volatility. Their returns are influenced not only by gold prices but also by the operational performance and stock market movements of the mining companies.
Overall, while Gold ETFs provide an effective way to gain exposure to gold, they are subject to market risks and price volatility. Investors should consider these factors and their investment goals when evaluating potential returns.
Ready to grow your portfolio with the best gold ETFs?
Whether you’re aiming for steady income or long-term growth, gold miner ETFs like GDX, GDXJ, or RING offer a smart way to diversify and profit from the gold market.
👉 Start investing today through a trusted brokerage account and gain exposure to gold without the hassle of physical storage.
