Best Gold ETF Funds to Buy in 2025

Gold has long been considered a safe-haven asset, prized by investors for its ability to hedge against inflation, market volatility, and economic uncertainty. In 2025, with gold prices reaching new all-time highs and global markets facing ongoing turbulence, gold exchange-traded funds (ETFs) have become more popular than ever.

Gold ETFs offer an efficient, liquid, and cost-effective way to gain exposure to gold without the need to store or insure physical bullion.

This article reviews the best gold ETF funds to buy in 2025, highlighting their performance, costs, and unique features to help you make an informed investment decision.

Why Invest in Gold ETFs in 2025?

The appeal of gold ETFs has surged in 2025 for several reasons:

• Record Gold Prices: Gold broke the $3,000 per ounce barrier for the first time in March 2025, drawing renewed attention from investors seeking stability.

• Market Volatility: With the S&P 500 down over 10% and the Nasdaq down more than 15% year-to-date, gold ETFs have risen nearly 30% in the same period, underlining their role as a hedge.

• Diversification: Gold ETFs allow investors to diversify away from equities and technology-heavy portfolios, which have shown vulnerability to sharp corrections.

• Central Bank Demand: Central banks continue to increase their gold reserves, supporting higher prices and investor confidence.

Top Gold ETF Funds to Consider in 2025

Here are some of the best-performing and most popular gold ETFs for 2025, based on recent returns, expense ratios, and global reach:

1. Franklin Responsibly Sourced Gold ETF (FGDL)

• 2025 Return: 44.02%

• Expense Ratio: 0.15%

• Highlights: FGDL is the top-performing gold ETF of the past year, offering exposure to responsibly sourced physical gold. Its strong returns and moderate fees make it a standout choice for investors seeking both performance and ethical sourcing.

2. iShares Gold Trust Micro (IAUM)

• 2025 Return: 43.89%

• Expense Ratio: 0.09%

• Highlights: IAUM boasts the lowest expense ratio among leading gold ETFs, making it an attractive option for cost-conscious investors. Its performance closely tracks the price of physical gold, and its micro-share format allows for flexible, small-scale investing.

3. Goldman Sachs Physical Gold ETF (AAAU)

• 2025 Return: 43.88%

• Expense Ratio: 0.18%

• Highlights: AAAU offers direct exposure to physical gold, stored in secure vaults. Its combination of strong performance and a reputable sponsor appeals to investors seeking reliability and transparency.

4. GraniteShares Gold Shares (BAR)

• 2025 Return: 43.82%

• Expense Ratio: 0.17%

• Highlights: BAR is another top performer in 2025, with a competitive fee structure and straightforward access to physical gold. Its transparency and liquidity have made it a favourite among institutional and retail investors alike.

5. VanEck Gold Miners ETF (GDX)

• 2025 Return: Over 34%

• Expense Ratio: 0.51%

• Highlights: Unlike the ETFs above, GDX invests in a basket of leading global gold mining companies. This fund offers leveraged exposure to gold prices—mining stocks often rise faster than the metal itself during bull markets, but can also be more volatile.

6. SPDR Gold Shares (GLD)

• 2025 Return: 13.67% (YTD as of March)

• Expense Ratio: 0.40%

• Highlights: GLD is one of the world's largest and most liquid gold ETFs. It tracks the price of physical gold and is widely used by both institutional and retail investors for its ease of access and tight spreads.

7. iShares Gold Trust (IAU)

• 2025 Return: 13.69% (YTD as of March)

• Expense Ratio: 0.25%

• Highlights: IAU is another large, highly liquid ETF that tracks the price of gold bullion. Its lower expense ratio compared to GLD makes it attractive for long-term holders.

8. Axis Gold ETF (India)

• 2025 Return: 26.08%

• Highlights: For investors in India or seeking global diversification, Axis Gold ETF has delivered strong returns and provides exposure to physical gold in the Indian market.

9. ICICI Prudential Gold ETF (India)

• 2025 Return: 25.39%

• Highlights: Another leading choice for Indian investors, this fund closely tracks gold prices and has a long-standing history of reliable performance.

Key Factors to Consider When Choosing a Gold ETF

• Expense Ratio: Lower fees mean higher net returns over time. Compare the expense ratios of different funds before investing.

• Liquidity: Larger ETFs like GLD and IAU offer high liquidity and tight trading spreads, making them suitable for active traders and large transactions.

• Physical Gold vs. Miners: Decide whether you want direct exposure to gold bullion or leveraged exposure via gold mining companies. Miners can outperform in bull markets but carry higher risk.

• Global Access: Consider funds that offer exposure to different markets, such as Indian gold ETFs, for additional diversification.

• Storage and Transparency: Reputable ETFs provide clear information about gold storage, security, and sourcing.

Gold Still the Gold Standard

Gold ETFs remain a compelling choice for investors seeking to hedge against volatility, diversify portfolios, and benefit from gold's historic strength in uncertain times. The best gold ETF funds to buy in 2025 include top performers like FGDL, IAUM, AAAU, BAR, and GDX, as well as global options like Axis and ICICI Prudential Gold ETFs. 

Before investing, compare fees, liquidity, and fund structure to ensure your choice aligns with your financial goals and risk tolerance.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.