Gold ETFs with Low Tracking Error – July 2026

Gold ETFs with low tracking error tend to closely mirror domestic gold prices, offering investors a cost-efficient and transparent way to gain exposure to gold. Here is a list of Gold ETFs with low tracking error for July 2026. 

Gold Exchange-Traded Funds (ETFs) are investment instruments that aim to track the domestic price of physical gold by investing primarily in gold bullion or related assets. Since these ETFs are traded on stock exchanges like regular shares, investors can benefit from movements in gold prices without dealing with the challenges of storing physical gold or concerns about purity and security. 

One important measure used to evaluate gold ETFs is tracking error. This metric shows how closely a fund’s performance matches its benchmark, which is usually the domestic price of gold. In this article, find the best Gold ETFs with low tracking error for July 2026.   

Note: The Gold ETFs listed here with tracking error as of May 29, 2026, and AUM as of May 31, 2026. 

Overview of Gold ETFs with Low Tracking Error 

1. Axis Gold ETF 

The Axis Gold ETF is an open-ended commodities exchange-traded fund designed to track the domestic price of physical gold. Managed by Axis Mutual Fund, it offers investors a secure, digital way to gain gold-linked exposure and hedge against inflation without needing to store physical gold. 

Key Metrics 

• 3yr CAGR: 33.56%
• 5yr CAGR: 23.52%  

1. UTI Gold ETF  

The UTI Gold Exchange Traded Fund (UTI Gold ETF) is an open-ended commodities mutual fund scheme designed to track the domestic price of physical gold. Backed by high-purity physical gold (often LBMA-certified), it provides investors a secure and liquid way to invest in gold without the safety or purity concerns of holding it physically  

Key Metrics 

• 3yr CAGR: 33.98%
• 5yr CAGR: 23.64% 

1. Quantum Gold Fund 

The Quantum Gold Fund (QGF) is an open-ended exchange-traded fund (ETF) that tracks domestic gold prices by predominantly investing in physical gold. Each ETF unit represents approximately 1/100th of a gram of gold, allowing for low-cost asset allocation without physical storage or making charges  

Key Metrics 

• 3yr CAGR: 33.59%
• 5yr CAGR: 23.47% 

1. Kotak Gold ETF 

Kotak Gold ETF is an open-ended passive exchange-traded fund that tracks the domestic spot price of physical gold. Launched in July 2007 and managed by Kotak Mahindra Mutual Fund, it provides investors with a transparent, highly liquid, and cost-efficient way to invest in gold without the risks and storage hassles of physical ownership.  

Key Metrics 

• 3yr CAGR: 33.56%
• 5yr CAGR: 23.49% 

1. Nippon India ETF Gold BeEs 

Nippon India ETF Gold BeES is an open-ended exchange-traded fund that tracks the domestic price of physical gold. It provides investors a highly liquid, cost-effective way to invest in gold, each unit represents approximately 0.01 grams of gold without the security risks or making charges associated with holding physical bullion.  

Key Metrics 

• 3yr CAGR: 33.35%
• 5yr CAGR: 23.21% 

How to Choose the Right Gold ETF? 

While checking gold ETFs with low tracking error, investors may evaluate the following factors:   

• Expense Ratio: Funds with lower costs generally tend to have lower tracking deviation over time.
• Liquidity: Higher trading volumes usually result in narrower bid-ask spreads, making entry and exit more efficient.
• Assets Under Management (AUM): Larger funds often benefit from operational efficiencies and better cost management.
• Historical Tracking Difference: Reviewing performance consistency across multiple timeframes can provide insight into how effectively a fund mirrors gold prices. 

Conclusion 

Gold ETFs with comparatively low tracking error can provide a way to gain exposure to gold while ensuring liquidity and transparency. However, as multiple funds may offer similar characteristics and tracking performance may change over time, investors should regularly review fund metrics, costs, and their own financial goals before making investment decisions. 

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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 private recommendation or 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. 

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