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Gold ETFs offer a straightforward way to invest in the precious metal, which can be attractive to some investors. Gold investments have the potential to diversify a portfolio and provide a long-term hedge against inflation, currency devaluation, and economic downturns.
Gold ETFs trade on major exchanges like individual stocks and typically operate in one of two ways: holding physical bars in secure vaults or investing in companies within the gold mining sector. Consequently, the value of your investment may shift based on either the spot price of gold or the market performance of the underlying mining stocks.
A look at 10 top gold ETFs can provide insight into the range of options available, though it’s important to consider the risks of gold investments. Gold is highly volatile in the short-term and may lead to losses.
10 Top Gold ETFs
These ten gold ETFs demonstrate the different types of gold ETFs that may be available. The ETFs may invest directly in physical gold or mining operations, and also vary by factors such as the size or type of mining companies they invest in.
The gold ETFs included here have a minimum of $1 billion in assets under management (AUM) and are ranked by market performance. AUM refers to the total value of the securities held within the fund, compared to market capitalization which is the total value of a company’s outstanding shares.
Keep in mind that a fund’s performance can change rapidly in the shorter-term and is not indicative of future returns. It’s important to research any fund you’re considering to determine if it might align with your goals, time horizon, and risk tolerance.
| Gold ETF | Ticker | Assets Under Management | Expense Ratio | Dividend Yield | 1-Month Return | 1-Year Return |
|---|---|---|---|---|---|---|
| VanEck Junior Gold Miners ETF | GDXJ | $9.7 billion | 0.51% | 2.05% | 2.9% | 103.1% |
| iShares MSCI Global Gold Miners ETF | RING | $3.4 billion | 0.39% | 0.90% | 2.5% | 96.0% |
| VanEck Gold Miners ETF | GDX | $30.4 billion | 0.51% | 0.56% | 3.5% | 89.5% |
| SPDR Gold MiniShares Trust | GLDM | $31.9 billion | 0.10% | -4.4% | 43.5% | |
| iShares Gold Trust Micro | IAUM | $7.6 billion | 0.09% | -4.4% | 43.5% | |
| abrdn Physical Gold Shares ETF | SGOL | $8.3 billion | 0.17% | -4.4% | 43.5% | |
| Goldman Sachs Physical Gold ETF | AAAU | $2.9 billion | 0.18% | -4.4% | 43.4% | |
| GraniteShares Gold Trust | BAR | $1.7 billion | 0.17% | -4.4% | 43.4% | |
| VanEck Merk Gold Trust | OUNZ | $2.9 billion | 0.25% | -4.4% | 43.4% | |
| iShares Gold Trust | IAU | $74.7 billion | 0.25% | -4.4% | 43.3% |
Source: Data from SoFi and Bloomberg, as of April 16, 2026. Universe of funds includes U.S.-based funds with at least $1B in AUM and no leverage. Funds ranked according to their AUM, expense ratio, and a blend of short-term and long-term performance.
VanEck Junior Gold Miners ETF (GDXJ)
The VanEck Junior Gold Miners ETF (GDXJ) normally invests at least 80% of its total assets in companies that are involved in the gold mining industry. Unlike large cap gold mining ETFs, GDXJ focuses on small and mid-sized companies that are relatively early in their development cycle.
iShares MSCI Global Gold Miners ETF (RING)
The iShares MSCI Global Gold Miners ETF (RING), managed by BlackRock, focuses on companies that derive the majority of their revenue from gold mining. It holds a range of large global mining companies spanning across both developed and emerging markets.
VanEck Gold Miners ETF (GDX)
The VanEck Gold Miners ETF (GDX) tracks the NYSE Arca Gold Miners Index, which measures the overall performance of major companies in the gold mining industry. Launched in 2006, it was the first ETF of its kind in the U.S. and remains one of the most widely traded precious metals mining funds.
SPDR Gold MiniShares Trust (GLDM)
The SPDR Gold MiniShares Trust ETF (GLDM) is designed to reflect the performance of the price of gold bullion, less GLDM’s expenses. Launched in June 2018 by State Street Global Advisors, it serves as a lower cost alternative to the flagship SPDR Gold Shares (GLD). Each share of GLDM represents one 1/100th of an ounce of gold.
iShares Gold Trust Micro (IAUM)
Managed by BlackRock, iShares Gold Trust Micro (IAUM) holds physical gold bars in secure vaults and aims to track the daily performance of the price of gold bullion. It aims to offer investors a simple, liquid way to gain exposure to physical gold. Launched in June 2021, IAUM is one of the newer gold offerings from BlackRock.
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abrdn Physical Gold Shares (SGOL)
The abrdn Physical Gold Shares (SGOL) ETF seeks to reflect the performance of the price of gold bullion (less expenses) and is backed by securely stored gold bars. It was launched in September 2009 and is known for its emphasis on holding “responsibly soured” gold.
Goldman Sachs Physical Gold ETF (AAAU)
The Goldman Sachs Physical Gold ETF (AAAU) holds gold bars in vaults located in the UK and is designed to track the performance of gold bullion over time, minus expenses. The fund was launched in July 2018 to give investors direct exposure to bullion.
GraniteShares Gold Trust (BAR)
The GraniteShares Gold Trust ETF (BAR) holds physical gold bars in a secure vault in London and tracks the LBMA Gold Price PM USD index. Launched in August 31, 2017, it currently offers a lower expense ratio and per share price compared to many other gold-leveraged ETFs.
VanEck Merk Gold Trust (OUNZ)
Like many other gold ETFs, the VanEck Merk Gold Trust ETF (OUNZ) tracks the gold spot price, less expenses, using gold bars and coins held in vaults. What makes OUNZ unique, however, is that it allows individual investors to redeem their share in exchange for one-ounce gold coins.
iShares Gold Trust (IAU)
The iShares Gold Trust (IAU) is the larger sibling of the iShares Gold Trust Micro (IAUM), listed above. Like IAUM, IAU holds vaulted, audited gold bars, allowing each share to represent a direct fractional interest in physical bullion. The primary distinction is the gold exposure per share: IAU represents approximately 1/50th of an ounce, while IAUM represents roughly 1/100th of an ounce.
What Are Gold ETFs?
A gold ETF is an exchange-traded fund designed to give investors exposure to gold price movements without the need to store, insure, or secure physical gold bullion. As noted above, some gold ETFs track the spot price of gold by holding physical gold bullion in secure vaults. Others invest in a portfolio of companies operating within the gold-mining industry.
Like other ETFs, gold ETFs trade on major exchanges throughout the day, with prices fluctuating based on market demand.
What Impacts the Price of Gold ETFs?
Gold ETFs backed by physical gold are largely influenced by the price of gold itself. Gold prices can fluctuate significantly due to factors such as inflation, interest rates, the strength of the U.S. dollar, and geopolitical events.
Gold mining ETFs are influenced not only by gold prices but also by company-specific factors, including mining costs, production levels, management decision, and broader stock market sentiment.
How to Evaluate Gold ETFs
Evaluating gold ETFs requires looking beyond the spot price of gold. Whether investing online or through a brokerage, there are a few general factors to consider whenever investing in an ETF, such its level of diversity, even among a single category like gold, its market volatility, and its liquidity level. Here are few specific considerations, as well:
- Fund size: Larger funds typically offer higher liquidity and reduced susceptibility to price distortions. Many investors look for ETFs with at least $200 million in assets under management (AUM).
- Five-year performances. Physically backed gold ETFs are designed to mirror gold price movements, so their long-term performances should generally track the commodity closely.
- Expense ratios: The expense ratio is the annual fee charged by the fund provider to cover management and operating costs. For example, a 0.10% expense ratio equals $10 per year for every $10,000 invested. Lower ratios can help protect potential long-term performances or returns.
- Source of performances or returns: Some ETFs track gold prices directly by holding physical bullion. Others invest in gold mining companies, which may outperform the price of gold during strong market conditions but can also introduce additional risks.
Pros and Cons of Investing in Gold ETFs
Gold ETFs offer several advantages, but they also come with tradeoffs.
Pros
- Easy access to gold: Gold ETFs allow investors to participate in the gold market without purchasing physical bars or coins. They trade on stock exchanges, making them simple to buy and sell through most brokerage accounts.
- Lower storage and security concerns: Unlike physical gold, gold ETFs eliminate the need for storage, insurance, or security services.
- High liquidity: Many gold ETFs are highly liquid, allowing investors to enter or exit positions quickly during market hours.
Cons
- Management fees: Gold ETFs charge annual expense ratios. While these fees are typically small, they can reduce potential long-term returns compared to holding physical gold outright.
- No physical ownership: Investors own shares of the fund rather than physical gold itself, which may be a drawback for those who prefer tangible assets.
- Tracking differences: Although gold-backed ETFs aim to follow gold prices closely, small discrepancies may occur due to fees, fund operations, or market factors.
How to Invest in Gold ETFs
If you’re interested in buying a gold ETF, here are the steps involved:
Step 1: Open a Brokerage Account
You need a brokerage or trading account to buy and sell ETFs, since they trade on stock exchanges like individual stocks.
Step 2: Fund Your Account
Transfer money from your bank account to your brokerage account. Most platforms allow ACH transfers, which typically take one to three business days.
Step 3: Search for ETF Ticker
In your brokerage platform, type the ETF’s ticker symbol into the search bar to find the fund.
Step 4: Place a Buy Order
Choose how many shares you want to purchase and decide between a market order (buy immediately at the current price) or a limit order (buy only at the price you choose).
Step 5: Confirm the Trade
Review the details and submit the trade. Once executed, the ETF will appear in your portfolio.
Things to Avoid When Investing in Gold ETFs
Here are some common mistakes to avoid when investing in gold ETFs:
- Ignoring tax consequences: Gains from physically backed gold ETFs may be taxed at the collectible rate (up to 28%) rather than standard capital gains rate, leading to higher tax bills.
- Overlooking expense ratios: Higher management fees can gradually reduce your potential net performances over time.
- Confusing gold ETFs with physical gold: When you buy a gold-backed ETF, you are buying a share in a trust that tracks the price of gold, not physical gold itself. This means you do not own the metal.
- Overexposure to gold: While gold is often viewed as a potential hedge against inflation or geopolitical instability, its price can fluctuate significantly. Many financial professionals suggest limiting gold exposure to around 10% of a diversified portfolio.
The Takeaway
Gold can be an attractive investment for some investors due to its key attributes. It may offer diversification given its historically lower correlation with traditional stocks and bonds. As a generally stable store of value over the long-term, it may provide a hedge against inflation and periods of economic instability. However, gold doesn’t always perform as expected and it can be incredibly volatile and risky in the short-term.
Investors should carefully review each fund’s holding, expense ratios, and investment strategy to ensure it aligns with their financial goals. As always, consulting with a financial professional may help you determine whether gold fits within your broader investment strategy.
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FAQ
What is the most famous gold ETF?
The largest — and arguably most well-known — gold exchange-traded fund (ETF) is SPDR Gold Shares ETF (GLD). The fund is designed to track the price of gold by holding physical gold bullion.
Is it wise to invest in gold ETFs?
Gold exchange-traded funds (ETFs) can be appealing because they offer a liquid and convenient way to gain exposure to gold prices. However, like any investment, they carry risks including high short-term volatility and may not be suitable for every portfolio.
Do gold ETFs pay dividends?
Gold exchange-traded funds (ETFs) backed by physical bullion typically do not pay dividends. However, gold mining ETFs may pay dividends because they invest in companies that may generate profits.
How do taxes work on gold ETF gains?
Gains from gold exchange-traded funds (ETFs) backed by physical gold may be taxed at the collectible rate (up to 28%) in the U.S. Gold mining ETFs, by contrast, are generally taxed like other equity ETFs.
About the author
Samuel Becker
Sam Becker is a freelance writer and journalist based near New York City. He is a native of the Pacific Northwest, and a graduate of Washington State University, and his work has appeared in and on Fortune, CNBC, Time, and more. Read full bio.
Photo credit: iStock/Liubomyr Vorona
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