Best Gold ETFs in India in August 2025 Based on 5yr CAGR

Gold Exchange-Traded Funds (ETFs) offer investors a way to invest in gold without physically holding the metal. These ETFs track the price of gold and are traded on stock exchanges, providing liquidity, transparency, and diversification benefits. For those looking to hedge against inflation, diversify their portfolio, or simply benefit from gold price movements, gold ETFs can be a choice. In this article, we take a look at the best gold ETFs in India in August 2025, based on the 5yr CAGR.

Best Gold ETFs in India in August 2025 – 5yr CAGR Basis

Note: The best Gold ETFs mentioned above have a market cap of over ₹1000 crore and sorted based on 5y CAGR as of July 23, 2025.

Overview of the Best Gold ETFs in India

1. ICICI Prudential Gold ETF

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

Key Metrics:

• Alpha: 10.04
• NAV: ₹84.78 (As of July 21, 2025)

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: ₹85.80

3. 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: ₹86.132

4. Kotak Gold ETF

Kotak Gold ETF is an open-ended gold Exchange Traded Fund that invests in physical gold and aims to closely mirror the domestic spot price of gold.

Key Metrics:

• Alpha: 10.41
• NAV: ₹84.20

5. Nippon India ETF Gold BeES

The Nippon India ETF Gold BeES aims to deliver returns that, before expenses, closely align with the domestic price of gold by investing in physical gold. While the scheme seeks to mirror gold’s performance, there is no assurance that its investment objective will be fully achieved. It is an open-ended scheme, listed on the exchange as an Exchange Traded Fund (ETF), offering investors an accessible way to invest in gold.

Key Metrics:

• Alpha: 9.52
• NAV: ₹82.66 (As of July 22, 2025)

Best Gold ETFs in India in August 2025 – 1yr Return Basis

Note: The best Gold ETFs mentioned above have a market cap of over ₹1000 crore and sorted based on 1yr returns as of July 23, 2025.

Benefits of Investing in Gold ETFs

• Purity Assurance: Physical gold often raises concerns about authenticity and quality, but Gold ETFs eliminate this worry as they are backed by gold with high purity, typically 99.5% or more.
• Liquidity: Gold ETFs offer easy liquidity since they are traded on stock exchanges, similar to regular shares, allowing investors to buy or sell quickly.
• Diversification: Gold ETFs help diversify portfolios, as gold usually has a low correlation with stocks and bonds and often performs well during periods of market volatility.
• Lower Costs: Unlike physical gold, Gold ETFs don’t involve expenses like storage, insurance, or making charges, making them a cost-effective investment option.

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Conclusion

Gold ETFs continue to be a preferred investment avenue for those seeking exposure to gold without the complexities of owning physical bullion. Investors can consider these ETFs as part of a diversified portfolio, based on their risk appetite and investment horizon, to hedge against inflation and benefit from gold price movements.

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 are subject to market risks, read all scheme-related documents carefully.