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

Gold has long been viewed as a reliable hedge by investors, traditionally seen as a safer asset due to its consistent price appreciation over the years. When it comes to investing in gold, there are various avenues available, ranging from physical gold to gold bonds, gold mutual funds, and gold Exchange-Traded Funds (ETFs). In this article, we’ll take a closer look at the top-performing Gold ETFs in India for May 2025 based on 5Y CAGR.

Best Gold ETFs in India for May 2025

Note: The Gold ETFs mentioned above have been selected and sorted based on 5y CAGR as of May 8, 2025

Overview of the Best Gold ETFs in India

1. SBI Gold ETF

SBI Gold ETF aims to track the price of gold and invest in gold and gold-related instruments. This ETF is suitable for investors who would like to invest in Gold but don’t like the hassles and costs of storing

Key Metrics

• Alpha: 9.91
• NAV: ₹83.94

2. HDFC Gold Exchange Traded Fund

The HDFC Gold ETF aims to generate returns that are in line with the performance of gold, subject to tracking errors.

Key Metrics

• Alpha: 9.87
• NAV: ₹84.18

3. ICICI Prudential Gold ETF

ICICI Prudential Gold ETF aims to provide investment returns that track the performance of domestic prices of Gold derived from the LBMA AM fixing prices.

Key Metrics

• Alpha: 10.04
• NAV: ₹83.88

Benefits of Investing in Gold ETFs

• Purity Assurance: One of the major concerns with physical gold is ensuring its purity. Gold ETFs remove this uncertainty because they are backed by gold of high purity—generally 99.5% or higher.
• Liquidity: Gold ETFs are highly liquid investment instruments because they are traded on stock exchanges just like regular shares.
• Diversification: Gold ETFs are a smart tool for diversification. Gold has historically had a low correlation with stocks and bonds, meaning it often performs well when equity markets are volatile.
• Lower Costs: Investing in Gold ETFs eliminates several costs associated with physical gold, such as storage, insurance, and making charges.

Also Read: Best Gold Stocks in May 2025: Titan, Sky Gold, Goldiam, KDDL and Thangamayil

Conclusion

Gold ETFs offer an accessible and budget-friendly method for investing in gold. Still, as with all investments, it’s crucial to be aware of possible risks, including price fluctuations, liquidity challenges, and discrepancies between the ETF’s performance and the price of physical gold. 

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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.