Gold Exchange-Traded Funds (ETFs) offer investors a convenient and cost-effective way to gain exposure to gold without the need to buy, store, or insure physical bullion. These funds invest in high-purity gold, typically 99.5% pure, with their underlying holdings audited every six months in accordance with SEBI regulations. Since each ETF unit represents a fractional value of gold, investors can start with a relatively small investment and gradually build their exposure over time.
| ETF Name (Ticker) | 5Y CAGR | Market Cap / AUM (₹ Cr) | 1Y Return |
| LIC MF Gold ETF | 26.38% | 281.45 | 53.84% |
| ICICI Prudential Gold ETF | 25.74% | 5,580.95 | 53.81% |
| Axis Gold ETF | 25.65% | 935.48 | 52.68% |
| Invesco India Gold ETF | 25.63% | 217.73 | 53.91% |
| Quantum Gold Fund | 25.62% | 381.94 | 54.11% |
| HDFC Gold ETF | 25.60% | 5,567.25 | 52.77% |
| Aditya Birla Sun Life Gold ETF | 25.59% | 1,032.38 | 54.74% |
| SBI Gold ETF | 25.58% | 7,729.72 | 53.21% |
| Kotak Gold ETF | 25.56% | 5,792.84 | 54.28% |
| Nippon India ETF Gold BeES | 25.40% | 15,032.12 | 53.78% |
Kotak Gold ETF tracks domestic gold prices with high liquidity. Over the past 6 months, the fund has delivered a strong return of 20.90%. It operates with an expense ratio of 0.52%, which is slightly higher than the category average of 0.49%. The fund's tracking error stands at 25.90%, aligning closely with its peers. It maintains an average risk profile compared to others in its sub-category, making it a balanced option for gold-backed portfolios.
The Quantum Gold Fund is a low-risk, gold-tracking ETF managed by Quantum AMC. It features a 0.55% expense ratio, which is slightly above the category average of 0.49%. The fund exhibits a tracking error of 26.07%, marginally beating its peers. Benefiting from recent market momentum, the ETF has delivered a strong 6-month return of 20.72%, making it an efficient, highly liquid choice for digital gold investors.
The LIC MF Gold ETF offers a liquid route to track physical gold prices in India. Over the past 6 months, the fund delivered a strong 20.99% return. It features a market-standard expense ratio of 0.45% and a tracking error of 24.85%, managing benchmark alignment slightly better than the category average. With a Riskometer score of 2.64, it holds an Average Risk profile, balancing asset volatility with gold's inherent stability.
The SBI Gold ETF tracks domestic physical gold prices with a Low Risk profile, making it a stable choice for conservative investors. Over the past 6 months, the fund has delivered a strong return of 20.29%. It features an expense ratio of 0.65%, which is slightly high for its category, and a tracking error of 25.87% that aligns closely with its peers.
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For investors looking to add gold exposure to their portfolios, Gold ETFs remain one of the most convenient and transparent investment options. While recent gains have been driven by a rally in gold prices amid global economic uncertainty, investors should remember that Gold ETFs are primarily designed for diversification and wealth preservation rather than income generation.
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.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 1, 2026, 3:03 PM IST
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