Gold has always been considered a safe haven in times of market uncertainty, and 2025 is shaping up to be a year where diversification is more important than ever. With inflation pressures, global geopolitical tensions, and currency fluctuations, investors are increasingly turning to Gold Exchange-Traded Funds (ETFs) as a reliable and convenient way to gain exposure to the yellow metal. Gold ETFs offer a hassle-free alternative to physical gold. They are listed on stock exchanges and can be bought or sold like shares, making them ideal for investors . If you’re looking to hedge your portfolio or make a strategic investment in gold, here are the best gold ETFs to buy for 2025.
1. Nippon India ETF Gold BeES
- Why it’s a top pick: Nippon India ETF Gold BeES is one of the oldest and most liquid gold ETFs in India. Backed by actual gold of 99.5% purity, this ETF tracks the domestic price of gold and is ideal for investors seeking steady returns with low tracking error.
- Expense Ratio: ~0.82%
- Assets Under Management (AUM): Over ₹7,000 crore
- Key Benefits: High liquidity, strong historical performance, and minimal tracking error
- Ideal for: Conservative investors seeking stability and transparency
2. HDFC Gold ETF
- Why it’s a top pick: Managed by one of India’s most trusted financial institutions, HDFC Gold ETF is known for its robust compliance standards and portfolio transparency. It tracks the price of gold in the Indian market and is supported by actual physical gold holdings.
- Expense Ratio: ~0.50%
- Assets Under Management (AUM): Around ₹4,000 crore
- Key Benefits: Strong management team, relatively low expense ratio, and good liquidity
- Ideal for: Long-term investors who trust brand reputation and consistent performance
3. ICICI Prudential Gold ETF
- Why it’s a top pick: ICICI Prudential Gold ETF has become a preferred choice for investors because of its affordable cost structure and consistent returns. It provides exposure to gold without the challenges of storage, purity, or making charges.
- Expense Ratio: ~0.55%
- AUM: Approx ₹3,000 crore
- Key Benefits: Transparent pricing, lower expense ratio, reliable fund house
- Ideal for: Investors looking for cost efficiency and stable returns
Also read: Gold Price Shocker: See How Much You’d Have Made If You Invested Decade Ago!
4. SBI Gold ETF
- Why it’s a top pick: SBI Gold ETF is backed by State Bank of India, adding a layer of trust and security. It offers returns that are in line with domestic gold prices and ensures compliance with regulatory standards.
- Expense Ratio: ~0.65%
- AUM: Around ₹2,500 crore
- Key Benefits: Backing of a leading public sector bank, transparent NAV updates, and long-term consistency
- Ideal for: Conservative investors who prioritize trusted brands and backing from government-associated institutions.
5. Axis Gold ETF
- Why it’s a top pick: Axis Gold ETF has been delivering consistent returns with a moderately low expense ratio. It holds 99.5% pure physical gold and mirrors the price fluctuations of gold in the Indian market.
- Expense Ratio: ~0.51%
- AUM: ₹1,800+ crore
- Key Benefits: Competitive expense ratio, sound fund management, reliable historical performance
- Ideal for: Investors looking for long-term wealth preservation with steady growth
Key Factors to Evaluate Before Investing in Gold ETFs
Investing in gold ETFs is relatively straightforward, but you should consider the following factors to make informed decisions:
- Expense Ratio: This refers to the yearly charge by the fund, and a lower expense ratio can help maximize your long-term returns.
- Liquidity: Choose ETFs with higher trading volumes and AUM for easy entry and exit.
- Tracking Error: It indicates how accurately the ETF reflects gold price movements. A lower tracking error means better efficiency.
- Fund House Reputation: Opt for ETFs managed by established fund houses with a strong compliance track record.
- Tax Efficiency: Gold ETFs are subject to capital gains tax. Holding them for over three years can make you eligible for indexation benefits.
In 2025, as markets continue to face uncertainty, gold ETFs serve as an excellent hedge against inflation and market volatility. With the convenience of stock-like trading and the security of gold as an asset class, they provide a balanced investment option. Whether you’re a first-time investor looking for safe diversification or a seasoned player wanting to rebalance your portfolio, these gold ETFs offer a smart and flexible route to harness the value of gold. 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.
Written by Pydimarri Hema Harshini
