Investing in gold has always been a go-to strategy for wealth preservation, and with global economic uncertainty, the demand for gold ETFs is soaring. If you’re looking for the best gold ETF to buy in 2025, you’re in the right place. Whether you’re after the best gold ETF with dividends for steady income, the best gold ETF in India for emerging market exposure, or the best gold ETF USA investors prefer, this guide covers it all.
With inflation concerns, market volatility, and geopolitical risks, gold ETFs provide a smart way to gain exposure to gold without the hassle of physical storage. In this guide, we’ll break down the top-performing gold ETFs for US investors, focusing on returns, liquidity, and dividend yields.
Why Invest in Gold ETFs in 2025?
Gold ETFs offer a cost-effective, liquid, and hassle-free way to invest in gold. Unlike physical gold, they don’t have storage costs, and they can be easily traded like stocks. Here’s why investing in the best gold ETF is a smart move:
- Hedge Against Inflation: Gold is a historically proven asset that retains value when inflation surges.
- Portfolio Diversification: Reducing reliance on equities and bonds can protect your wealth during economic downturns.
- High Liquidity: Gold ETFs trade on major exchanges, offering flexibility and ease of buying/selling.
- Lower Costs: No need to worry about making, storing, or securing physical gold.
Best Gold ETF to Buy in 2025
When choosing the best gold ETF, investors must consider expense ratios, liquidity, and historical performance. Below are the top gold ETFs for US investors.
1. SPDR Gold Shares (GLD) – The Industry Leader
GLD is the largest and most popular gold ETF, making it a preferred choice for US investors. With a massive asset base and high liquidity, it closely tracks the price of gold.
- Expense Ratio: 0.40%
- Assets Under Management (AUM): $50+ billion
- Why Buy? Highly liquid, most trusted, and ideal for both long-term and short-term investors.
2. iShares Gold Trust (IAU) – Best Low-Cost Gold ETF
For cost-conscious investors, IAU is one of the best gold ETFs to buy in 2025. It offers lower fees compared to GLD, making it an attractive option for long-term holders.
- Expense Ratio: 0.25%
- AUM: $30+ billion
- Why Buy? Lower expense ratio than GLD while still maintaining excellent liquidity.
3. Aberdeen Standard Physical Gold Shares ETF (SGOL) – Best for Physical Backing
SGOL is a great option for investors who want exposure to physical gold stored in Swiss vaults. It’s one of the best ways to ensure your investment is backed by tangible assets.
- Expense Ratio: 0.17%
- AUM: $2+ billion
- Why Buy? Physically backed gold ETF with lower fees than GLD and IAU.
4. Sprott Gold Miners ETF (SGDM) – Best Gold ETF with Dividends
If you’re searching for the best gold ETF with dividends, SGDM is a strong choice. Instead of holding physical gold, this ETF invests in gold mining companies, offering potential dividends and growth.
- Expense Ratio: 0.50%
- AUM: $500+ million
- Dividend Yield: Varies (based on mining company profits)
- Why Buy? Potential dividends and high growth potential from gold mining stocks.
5. VanEck Vectors Gold Miners ETF (GDX) – Best for Gold Mining Stocks
GDX offers diversified exposure to the world’s largest gold mining companies. It’s a great option for those who want more leverage on gold prices through mining stocks.
- Expense Ratio: 0.51%
- AUM: $10+ billion
- Why Buy? High growth potential and exposure to the mining sector.
Best Gold ETF in India for US Investors
If you’re looking for international diversification, the best gold ETF in India could be an excellent choice. The Indian gold market is one of the largest globally, making it an attractive investment destination.
- Nippon India Gold ETF (GOLDBEES) – One of the most popular gold ETFs in India, offering liquidity and ease of investment.
- HDFC Gold ETF – Backed by one of India’s leading financial institutions, providing a stable gold investment option.
While these ETFs are great for Indian investors, US investors might find it easier to invest in US-listed gold ETFs for better accessibility and liquidity.
Best Gold ETF USA – The Top Picks for US Investors
For US investors looking for the best gold ETF USA, the best choices remain GLD, IAU, and SGOL for direct gold exposure. However, those looking for dividend-paying gold ETFs should consider SGDM or GDX, as they invest in mining companies that distribute earnings.
Comparison of Top US Gold ETFs
| Gold ETF | Expense Ratio | AUM | Type | Dividend Yield |
|---|---|---|---|---|
| GLD | 0.40% | $50B+ | Physical Gold | No |
| IAU | 0.25% | $30B+ | Physical Gold | No |
| SGOL | 0.17% | $2B+ | Physical Gold | No |
| SGDM | 0.50% | $500M+ | Gold Mining Stocks | Yes |
| GDX | 0.51% | $10B+ | Gold Mining Stocks | Yes |
How to Choose the Best Gold ETF for Your Portfolio?
With so many options, selecting the best gold ETF to buy depends on your investment goals. Here’s a quick breakdown to help you decide:
- For direct exposure to gold prices: Choose GLD, IAU, or SGOL.
- For lower costs: SGOL has the lowest expense ratio.
- For dividend income: SGDM or GDX are great choices.
- For international exposure: Consider Indian Gold ETFs (but check investment restrictions).
Conclusion
Gold ETFs remain one of the smartest ways to invest in gold without dealing with physical storage. If you want the best gold ETF USA, go for GLD or IAU for stability. If you seek dividends, SGDM or GDX are solid choices. Those looking for the best gold ETF with dividends should focus on gold miners, while international investors can consider the best gold ETF in India for geographical diversification.
No matter your strategy, 2025 is shaping up to be a strong year for gold investments. Whether you’re hedging against inflation or diversifying your portfolio, choosing the best gold ETF to buy will help you secure your wealth for the future.
FAQs
What is the best gold ETF to buy in 2025?
The best gold ETF to buy depends on your investment goals. If you want direct exposure to gold prices, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are top choices. If you’re looking for dividend income, Sprott Gold Miners ETF (SGDM) and VanEck Vectors Gold Miners ETF (GDX) are great options.
Which gold ETF pays dividends?
Gold ETFs that hold physical gold, like GLD, IAU, and SGOL, do not pay dividends. However, gold miner ETFs, such as SGDM and GDX, pay dividends because they invest in gold mining companies that distribute earnings to shareholders.
Is investing in a gold ETF better than buying physical gold?
Yes, for most investors. Gold ETFs are more liquid, have lower costs (no storage fees), and are easier to buy and sell compared to physical gold. However, if you prefer holding gold as a store of value outside the financial system, physical gold might be a better choice.