Top Gold ETFs for 2025
SPDR Gold MiniShares Trust offers the lowest expense ratio at 0.10%. IShares Gold Trust charges 0.25%, while SPDR Gold Shares costs 0.40%. SPDR Gold MiniShares Trust targets retail investors with its ultra-low 0.10% expense ratio. The lower expense ratio helps reduce the drag on long-term returns compared to higher-cost alternatives. Modern investors use gold ETFs as an inflation hedge because they’re easier to trade than physical gold.
Rising government debt levels and money supply are making U.S. dollars less valuable, which tends to drive up the price of gold. Bank failures pose real risks to ETF investors, with 553 U.S. banks failing since 2000. Major custodian banks have faced regulatory fines and operational challenges.
iShares MSCI Global Gold Miners ETF (RING)
Gold ETFs represent paper claims on gold rather than actual ownership of physical bullion. This creates counterparty risk that does not exist with direct gold ownership. Investors planning to hold positions for less than one year face the highest volatility risk. Long-term holders typically experience more stable returns as gold maintains purchasing power over decades. This makes it easy for new investors to start best gold etf buying gold ETFs with any amount of money. They simply buy and store gold bullion to match price movements.
iShares Gold Trust
Both funds hold physical gold bullion stored in secure vaults. Gold mining ETFs can provide higher returns than physical gold funds. However, they also carry additional risks related to individual company performance and operational challenges.
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- A decisive ~$5 million inflow in April coincided with a major price breakout, and since then, the buying hasn’t stopped.
- VanEck Vectors Gold Miners ETF charges 0.51%, and VanEck Vectors Junior Gold Miners ETF costs 0.52%.
- Its Fund Flow Chart shows multiple surges of $50M–$100M+ in inflows throughout late 2024 and early 2025.
- For more aggressive investors seeking higher returns (and higher risk), gold mining ETFs like RING or GDX may be more appealing.
- Major custodian banks have faced regulatory fines and operational challenges.
What are the benefits and drawbacks of investing in Fidelity gold ETFs?
- Investors also face different tax treatment compared to physical bullion and must understand the fundamental differences between paper and physical gold ownership.
- Vanguard does not currently offer a dedicated gold ETF focused solely on physical gold or gold mining.
- Among mining ETFs, iShares MSCI Global Gold Miners ETF (RING) currently has the highest 30-day SEC yield at 0.91%, followed by GDX.
- Investors can purchase gold ETFs from other providers through Fidelity brokerage accounts.
- A misstep, such as cost overruns on a mine development, could be costlier to investors.
- Historically, gold offers diversification benefits, but its performance isn’t consistent across all inflationary periods.
We exclude gold exchange-traded notes and leveraged gold ETFs, which may come with added risk or fees. There’s no way to know for certain if it’s too late to invest in gold. In addition to holding responsibly sourced gold, this ETF has a low expense ratio of 0.17%.
It requires a lot of energy to dig up, refine and store gold. There are also issues around potential labour abuses in the supply chain. Gold prices set an all-time high above $3,682 in mid-September after rallying more than 44% in the year leading to Sept. 11, 2025.
What to look for in the best gold ETFs
This dramatic rise helped investors maintain wealth as other assets declined. Gold ETFs provide instant diversification without storing physical metal. Investors can buy and sell ETF shares instantly during market hours. Gold ETFs issue shares that represent fractional ownership of the fund’s underlying assets.
The Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT) is the top performer on this list year to date, with gains over 50%. It aims to deliver twice the daily return of a gold miners index, meaning if the index rises 1% in a day, this fund is designed to rise 2%. However, this fund does not produce cash flow for its investors. To take advantage of this ETF’s gains, you will need to sell shares. Gold usually generates its highest returns during economic and geopolitical uncertainty. The precious metal has been coveted by societies for thousands of years, and its intrinsic value will never go away.
Investing in the precious metal has long been seen as a proactive hedge against high inflation and economic uncertainty, and there is plenty of that around at the moment. UK inflation hit 3.8% in July, its highest rate in 18 months. Kevin Voigt is a freelance writer covering personal loans and investing topics for NerdWallet. He previously was a reporter with The Wall Street Journal and business producer for CNN.com in Hong Kong, where he was based for nearly two decades.
It has a lower ETF expense ratio than its larger rivals at 0.18%. Owning shares in this ETF is a great proxy for owning physical gold without the hassle and expense of storing or insuring bars and coins. The ETF handles these items, storing its bullion in the London branch of JPMorgan Chase (JPM -1.03%). Overall, this gold ETF has done an excellent job of tracking the price of gold, with only a minor underperformance due to its expense ratio.
Gold ETF investors often ask about top performers for long-term growth, dividend opportunities, and physical backing options. ETF investors also avoid state sales taxes that many jurisdictions impose on physical bullion purchases. Physical gold ETFs like PHYS may have different tax treatment than standard ETFs. VanEck Vectors Junior Gold Miners ETF shows the highest volatility. Small mining companies face greater operational risks than established producers.
Which gold ETF has the lowest expense ratio?
Others own shares of gold mining companies, which don’t track the price of gold. Gold ETFs allow investors to speculate on gold prices without buying physical gold. The benefit of owning a gold mining company ETF over a gold price ETF is that it can generate higher returns.
When gold prices rise, mining companies often see amplified gains due to their operational leverage. BAR holds physical gold bullion similar to other major gold ETFs. Mining ETFs can deliver higher returns than gold prices when companies increase production or find new deposits. The goal of this fund is to reflect the price of gold bullion. It is the most popular and oldest gold ETF trading on the U.S. market. The company offers research tools to evaluate expense ratios and historical returns.
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