Gold exchange-traded funds (ETFs) remain one of the simplest ways for Indian investors to gain exposure to bullion without the complications of physical ownership or jewellery costs. In 2025, gold prices in India have repeatedly reached record highs, surpassing ₹1.4 lakh per 10 grams for 24-karat gold amid global safe-haven demand and expectations of U.S. interest-rate cuts.
Unlike physical gold, ETFs trade on stock exchanges and offer transparent pricing, daily liquidity, and lower transaction frictions. However, choosing the best gold ETF is not about chasing short-term returns; it is about consistent tracking of gold prices, low expense structures, and tradability over time.
What Makes a Gold ETF Worth Choosing
Gold ETFs in India predominantly hold physical bullion and are designed to mirror domestic gold price movements as closely as possible. The most reliable funds offer minimal tracking error (the difference between the ETF’s performance and gold’s spot price), low expense ratios, and sufficient liquidity that tightens bid-ask spreads.
For most portfolios, gold acts as a diversifier and hedge, particularly when equities face volatility or inflation risks. Allocations typically range from 5% to 15% of a balanced portfolio, depending on risk appetite and macroeconomic conditions.
Leading Gold ETFs Available in India
| ETF Name | Tracking Focus | Performance (1 Yr) |
| Nippon India ETF Gold BeES | Domestic gold prices via physical bullion | 78.81% |
| SBI Gold ETF | Spot gold price reflection | 78.37% |
| HDFC Gold ETF | Domestic bullion-linked gold prices | 78.71% |
| ICICI Prudential Gold ETF | Price of gold based on international benchmarks | 79.56% |
| Kotak Gold ETF | Domestic gold price movements | 78.14% |
| UTI Gold ETF | Spot gold price exposure | 79.92% |
| Axis Gold ETF | Physical gold-backed price tracking | 79.06% |
Returns as of Dec 24, 2025
Gold Miner ETFs Add Equity-Linked Upside
In addition to traditional gold ETFs, global markets also offer gold miner ETFs, which provide exposure to companies engaged in gold mining rather than the metal itself. These vehicles blend bullion exposure with equity characteristics: when gold prices rise, miners’ profitability often expands faster due to operating leverage, amplifying returns during strong gold cycles.
That dynamic was visible in 2025, as record gold prices significantly improved miners’ margins, leading gold mining equities to outperform bullion. However, Indian exchanges do not offer gold miner ETFs, meaning access for domestic investors requires global investing platforms. Through platforms such as Appreciate, Indian investors can participate in these international gold miner ETFs alongside other global assets, using them as higher-risk, satellite allocations to complement core gold exposure rather than replace it.
Popular Gold Miner ETFs in Global Markets
| Ticker | ETF Name | Exposure Focus | Performance (1 Yr) |
| GDX | VanEck Gold Miners ETF | Large and mid-cap global gold miners | 161.83% |
| GDXJ | VanEck Junior Gold Miners ETF | Smaller and mid-tier gold miners | 176.60% |
| RING | iShares MSCI Global Gold Miners ETF | Broad global gold mining companies | 171.58% |
| SGDM | Sprott Gold Miners ETF | Quality-focused precious metals miners | 164.04% |
Returns as of Dec 24, 2025
Conclusion
Gold ETFs remain a practical way for Indian investors to participate in gold’s multi-year rally and protect against economic uncertainty. Domestic gold ETFs excel at tracking bullion prices without storage headaches, while global gold miner ETFs provide enhanced equity-linked upside for those willing to accept higher volatility. Used thoughtfully within a diversified portfolio, these instruments can help balance risk and opportunity amid fluctuating market conditions in 2025 and beyond.
Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. The securities quoted are exemplary and are not recommended.
