In periods of economic uncertainty, investors increasingly turn to Gold Exchange-Traded Funds (ETFs) as a safe-haven asset. In India, with rising geopolitical tensions and sharp gold price surges, these ETFs provide a seamless, low-cost, and liquid way to invest in gold without dealing with storage or purity concerns. Notably, gold ETF assets under management in Gujarat surged by 27% between January and April 2025, underscoring the growing investor preference for digital gold exposure.
Moreover, Indian gold ETF holdings have climbed over 200% in the past five years, and ETFs have outperformed Nifty 50-based funds in 7 out of the last 10 years, reinforcing their strategic value during market instability.
Here are the top-performing Gold ETFs, ranked by 5-year CAGR and other factors:
Other notable mentions include LIC MF Gold ETF, UTI Gold ETF, Aditya Birla Sun Life Gold ETF, and Axis Gold ETF, all demonstrating healthy returns in both short- and long-term horizons.
1. Strong Returns in Tough Markets
Gold ETFs have delivered an average 1-year return close to 30%, with some like LIC MF Gold ETF yielding nearly 30% annually over one, three, and five years.
2. Liquidity & Accessibility
Traded like equities on stock exchanges, these ETFs offer greater ease of entry and exit compared to physical gold or bonds.
3. Favorable Tax Structure & Costs
With expense ratios generally below 1% and favorable tax treatment similar to equities (long-term capital gains at 12.5%), they’re cost-efficient.
4. Digital Shift & Rising Popularity
Gold ETF inflows in India jumped dramatically in June 2025, reflecting strong demand amid dwindling physical gold sales.
When markets are volatile, Gold ETFs offer a compelling blend of stability, returns, and flexibility. Among the top picks, HDFC Gold ETF, ICICI Prudential Gold ETF, Nippon India ETF Gold BeES, SBI Gold ETF, and Kotak Gold ETF stand out for their performance, liquidity, and tracking accuracy. As uncertainty looms, these ETFs can play a vital role in protecting and diversifying your investment portfolio.