Gold ETF Returns: Gold Exchange Traded Funds (ETFs) offer an accessible way to invest in gold without physically holding the metal. They have grown popular among investors seeking portfolio diversification and a hedge against inflation. Here’s a breakdown of what Gold ETFs are and their returns over various periods.
What is a Gold ETF?
- A Gold ETF is a type of exchange-traded fund that tracks the price of gold.
- Investors can buy and sell units of a Gold ETF just like any stock on the exchange, but the underlying asset is physical gold.
- It eliminates the need to store gold physically and allows easy liquidity through the stock market.
Gold ETF Returns Over Time:
- Currently, there are about 17 Gold ETF schemes available in the market.
- 1-year return: On average, Gold ETFs have provided around 30%.
- 3-year return: Approximately 17%.
- 5-year return: Around 14%.
Best Gold ETF Performers in India:
These ETFs generally show strong performance, reflecting the steady rise in gold prices over the past few years.
- LIC Mutual Fund Gold ETF:
- 1-year return: 30%.
- 3-year return: 17.5%.
- 5-year return: 14%.
- SBI Gold ETF
-
- 1-year: 28.42%
- 3-year: 59.05%
- 5-year: 94.81%
- HDFC Gold ETF
-
- 1-year: 28.65%
- 3-year: 59.12%
- 5-year: 94.27%
- Nippon India Gold BeES
-
- 1-year: 28.36%
- 3-year: 59.07%
- 5-year: 93.07%
- ICICI Prudential Gold ETF
-
- 1-year: 29.02%
- 3-year: 59.10%
- 5-year: 93.75%
- Kotak Gold ETF
-
- 1-year: 28.94%
- 3-year: 59.01%
- 5-year: 92.46%
- Quantum Gold Fund ETF
-
- 1-year: 28.75%
- 3-year: 58.91%
- 5-year: 93.01%
- Aditya Birla Sun Life Gold ETF
-
- 1-year: 28.61%
- 3-year: Not available
- 5-year: Not available
- Axis Gold ETF
-
- 1-year: 28.65%
- 3-year: 58.97%
- 5-year: 94.85%
- UTI Gold ETF
-
- 1-year: 29.30%
- 3-year: 59.05%
- 5-year: 93.38%
Gold ETF vs. Physical Gold:
- In the past year, physical gold outperformed Gold ETFs, providing over 30% returns compared to the ETF’s 29%.
- Over a 3-year period, Gold ETFs returned 59%, whereas physical gold delivered a higher 69% return.
Gold remains a strong investment option:
Gold ETFs offer convenience, liquidity, and a hassle-free way to invest in gold. While their returns can closely match physical gold in the short term, physical gold tends to provide slightly higher returns over the long term. Whether you choose physical gold or ETFs, gold remains a strong investment option, particularly in uncertain economic times.