Best Gold ETFs in India for June 2025: SBI Gold ETF, Kotak Gold ETF, and More Based on 5Y CAGR

Investing in Gold Exchange-Traded Funds (Gold ETFs) is a convenient and cost-effective way for investors to gain exposure to the price of gold without physically owning the metal. Gold ETFs are traded on stock exchanges just like shares and typically aim to track the performance of gold prices by holding physical gold or gold-related assets. 

These investment vehicles offer liquidity, transparency, and diversification benefits, making them an attractive option for those seeking to hedge against inflation, diversify their portfolios, or safeguard their wealth during periods of economic uncertainty. In this article, we’ll take a closer look at the Gold ETFs in India for June 2025 based on 5Y CAGR.

Best Gold ETFs in India for June 2025

Note: The Gold ETFs mentioned above have been selected and sorted based on 5Y CAGR as of May 30, 2025

Overview of the Best Gold ETFs in India

1. SBI Gold ETF

SBI Gold ETF mirrors the price of the gold and makes investments in gold and gold-related instruments. It is an ideal choice for investors who want exposure to gold without the inconvenience and expenses associated with storing the physical metal.

Key Metrics

• Alpha: 9.91
• NAV: ₹81.58

2. HDFC Gold Exchange Traded Fund

The HDFC Gold ETF seeks to deliver returns that closely reflect the performance of gold, while accounting for potential tracking errors.

Key Metrics

• Alpha: 9.87
• NAV: ₹81.69

3. ICICI Prudential Gold ETF

ICICI Prudential Gold ETF aims to deliver investment returns that closely follow the domestic gold prices, which are based on the LBMA AM fixing prices.

Key Metrics

• Alpha: 10.04
• NAV: ₹81.67

Factors to Consider Before Investing in Gold ETFs

• Gold Price Volatility: Gold prices can be volatile due to global economic conditions, inflation, interest rates, and geopolitical tensions. It's important to understand these dynamics before investing.
• Tracking Error: ETFs aim to mirror gold prices, but minor differences can occur due to fund expenses or market inefficiencies. Lower tracking errors indicate better performance in replicating gold prices.
• Expense Ratio: This is the annual fee charged by the fund, which affects your overall returns. Compare the expense ratios of different Gold ETFs to ensure cost-efficiency.
• Liquidity and Trading Volume: Choose ETFs with high trading volumes to ensure ease of buying and selling without large price fluctuations.
• Fund Performance and Reputation: Evaluate the historical performance and credibility of the fund house managing the ETF. Well-managed funds are more likely to track gold prices accurately and handle assets efficiently.

Also Read: Best Gold Mutual Funds in India for June 2025: Axis Gold Fund, SBI Gold Fund, and More Based on 5Y CAGR

Conclusion

Gold ETFs offer a practical and efficient way to gain exposure to gold without the challenges of physical ownership. They combine the benefits of liquidity, affordability, and transparency, making them a suitable option for both new and experienced investors looking to diversify their portfolios or hedge against economic uncertainty. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.