Looking for the best gold ETFs in India? Here’s a curated snapshot of performance and tracking efficiency that can guide your investment decisions in August 2025.
Why Gold ETFs Matter
Gold ETFs, exchange-traded funds that mirror the price of gold, offer investors hassle-free, liquid, and cost-effective exposure to the metal. They eliminate the need for physical storage and let you invest through your broker, just like stocks.
Top Gold ETFs by 5-Year CAGR (as of August 23, 2025)
| Gold ETF | 5-Year CAGR (%) | Market Cap (₹ Crore) |
|---|---|---|
| ICICI Prudential Gold ETF | 13.80 | ₹1,905.05 |
| HDFC Gold Exchange Traded Fund | 13.70 | ₹1,906.09 |
| SBI Gold ETF | 13.68 | ₹2,644.09 |
| Kotak Gold ETF | 13.65 | ₹1,984.14 |
| Nippon India ETF Gold BeES | 13.53 | ₹5,168.88 |
These ETFs lead the pack with strong long-term compounding returns, making them reliable gold investment options in India.
Top Trackers with Lowest Tracking Error (August 2025)
Low tracking error means the ETF closely follows gold prices with minimal deviation. These ETFs have demonstrated top-tier precision:
- UTI Gold ETF: 0.14%
- Quantum Gold Fund: 0.15%
- Axis Gold ETF: 0.22%
- ICICI Prudential Gold ETF: 0.22%
- LIC MF Gold ETF & Nippon India ETF Gold BeES: 0.22% each.
Should You Prioritise Returns or Tracking Accuracy?
| Goal | Best Choice | Why It Matters |
|---|---|---|
| Maximize long-term growth | ICICI, HDFC, SBI, Kotak, Nippon Gold | Excellent 5-year CAGR |
| Closest gold price tracking | UTI, Quantum, Axis, ICICI, Nippon | Minimal tracking error |
Final Takeaway
If you’re aiming for long-term wealth growth, ETFs like ICICI Prudential, HDFC Gold ETF, SBI Gold ETF, Kotak Gold ETF, and Nippon India ETF Gold BeES are top contenders given their strong 5-year returns. If your priority is price fidelity, meaning your ETF reflects gold price movements with near-perfect accuracy, then UTI Gold ETF, Quantum Gold Fund, and Axis Gold ETF are worth considering.
No matter which option you choose, gold ETFs offer a smart, secure, and transparent way to invest in gold, whether for diversification, inflation protection, or strategic growth.
