Gold ETFs with Low Tracking Error – September 2026

In September 2026, several Gold Exchange Traded Funds (ETFs) demonstrated low tracking errors, offering investors a closer alignment with the gold market. These ETFs include offerings from Kotak, SBI, Nippon India, HDFC, and Aditya Birla Sun Life, each with distinct features and performance metrics. 

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 September 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 September 2026.   

Note: In the above data, the NAV is as of September 1, 2026, and AUM as of July 31, 2026. 

Kotak Gold ETF 

The Kotak Gold ETF shows a market cap of ₹13,566.50 crore with a Net Asset Value (NAV) of ₹126.88 as of September 1, 2026. It has recorded a 1-year return of 44.71% and a 3-year CAGR of 35.67%. The ETF's expense ratio is 0.52%, and it has a tracking error of 26.9%. 

SBI Gold ETF 

SBI Gold ETF holds a market cap of ₹24,424.70 crore and an NAV of ₹129.6. Its 1-year return stands at 44.64%, with a 3-year CAGR of 35.38%. The expense ratio is 0.65%, and the tracking error is 26.98%. 

Nippon India ETF Gold BeES 

Nippon India ETF Gold BeES has the largest market cap among the listed ETFs at ₹53,341.20 crore. The NAV is ₹125.67, and it has achieved a 1-year return of 44.72%. The 3-year CAGR is 35.43%, with an expense ratio of 0.81% and a tracking error of 26.99%. 

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HDFC Gold ETF 

With a market cap of ₹22,285.40 crore, the HDFC Gold ETF has an NAV of ₹129.86. It has a 1-year return of 45.04% and a 3-year CAGR of 35.50%. The expense ratio is 0.59%, and the tracking error is 27.06%. 

Aditya Birla Sun Life Gold ETF 

The Aditya Birla Sun Life Gold ETF, with a market cap of ₹2,692.20 crore, has an NAV of ₹133.71. It offers a 1-year return of 44.84% and a 3-year CAGR of 35.75%. The expense ratio is 0.44%, and the tracking error is 27.14%. 

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 

In September 2026, Kotak, SBI, Nippon India, HDFC, and Aditya Birla Sun Life Gold ETFs show tracking errors ranging from 26.9% to 27.14%. Their 1-year returns vary between 44.64% and 45.04%, with market caps spanning ₹2,692.20 crore to ₹53,341.20 crore. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal 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.