Best Gold ETFs: Top Funds For Gold Investing Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Editorial disclosure
All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. SHARE: Stiggdriver/Getty Images May 26, 2022 Gio Moreano is a contributing writer, covering investment topics that help you make smart money decisions. Formerly an investing journalist and lead analyst for CNBC, he is passionate about financial education and empowering people to reach their goals. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money. Investing disclosure: The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. There are multiple ways to , from directly purchasing gold bullion to more indirect methods like owning shares of public mining companies. To get in on the action, the most efficient approach for retail investors is through with gold as their underlying asset. While some funds invest directly in the physical metal, others manage a portfolio of gold-related stocks. ETFs are convenient because they provide instant at a low cost. Here’s a look at some of the most widely held gold ETFs. Top gold ETFs
Bankrate selected its top funds based on the following criteria: U.S. funds that appear in ETF.com’s screener for gold ETFs Assets under management of at least $1 billion under 0.60 percent (ETF performance data mentioned below is as of May 25, 2022.) SPDR Gold Trust GLD
GLD is one of the most popular ETFs available. The fund invests in physical gold, and its performance is highly correlated to gold spot prices. Fund issuer: State Street Global Advisors 2022 YTD performance: 1.85 percent Five-year annual return: 7.93 percent Assets under management: $64.1 billion Expense ratio: 0.40 percent iShares Gold Trust IAU
Another popular option, this fund also tracks the spot price of gold by investing in gold bars held in vaults around the world. But compared to GLD, its expense ratio is lower. Fund issuer: BlackRock 2022 YTD performance: 1.92 percent Five-year annual return: 8.10 percent Assets under management: $31.9 billion Expense ratio: 0.25 percent VanEck Vectors Gold Miners ETF GDX
GDX is one of the most popular ETFs in the global mining sector. The fund owns all the major names in the mining space. Apart from gold, some of these firms also mine for metals like silver and copper. Fund issuer: VanEck 2022 YTD performance: 2.2 percent Five-year annual return: 8.26 percent Assets under management: $13 billion Expense ratio: 0.51 percent VanEck Vectors Junior Gold Miners ETF GDXJ
This fund invests in foreign small-cap mining companies that generate at least half of their revenues from gold and silver. About 60 percent of these companies are based in Canada. Fund issuer: VanEck 2022 YTD performance: -3.96 percent Five-year annual return: 5.48 percent Assets under management: $4.1 billion Expense ratio: 0.52 percent GraniteShares Gold Trust BAR
This ETF invests directly in gold held in a London vault and overseen by ICBC Standard Bank, and its price should track the spot price of the precious metal relatively closely. Fund issuer: GraniteShares 2022 YTD performance: 2.04 percent Three-year annual return: 13.07 percent (inception date was 08/31/2017) Assets under management: $1 billion Expense ratio: 0.17 percent Why invest in gold
The most common reason retail investors buy gold ETFs is diversification. Owning various investments minimizes the risk of having too much exposure to a single asset. Historically, gold has had a low correlation to the stock market. For example, during the financial crisis in 2008, gold prices rose 2 percent while the S&P 500 index plunged 37 percent. Apart from diversification, gold also serves because its value tends to increase along with the cost of living. Additionally, in times of political or social turmoil, investors often flock to gold as a safe haven, leaving behind more volatile assets. Gold has a strong track record as a highly effective portfolio diversifier and a defensive store of value. The disadvantages of buying gold
While gold has retained its value over the years, the commodity has been susceptible to erratic moves in the short term. Some investors also argue that, unlike stocks, valuations for gold can be tricky to estimate. There are no earnings nor cash flow metrics to analyze. Similarly, gold is a non-yielding asset, a turn-off for those looking for . In 2021, many gold funds decreased in value as investors sold gold to purchase riskier assets amidst a boom in the stock and cryptocurrency markets. Now as stocks have entered bear territory in 2022, gold returns have slowly started to pick back up as investors are turning back to the metal for stability. Investors should be wary of these swings in valuation as market conditions change. Depending on the type of assets you own, profits from selling gold ETFs can be rather than ordinary investments, potentially raising the tax rate you pay. These rules only apply for holdings outside tax-advantaged accounts like a or an . How to buy gold ETFs
When selecting gold ETFs, decide whether you want exposure to physical gold or public companies involved in gold mining. These two asset classes have different risk profiles. As you plan your investment strategy, here are four steps to guide you: Determine your financial goals: The investments you choose depend on what you are trying to achieve. For example, someone saving to buy a second home will have a different investment strategy than someone saving for their child’s college education costs. So always let your financial objectives drive your decision-making. Research gold funds: When selecting commodity ETFs, pay attention to factors like the fund’s performance, expense ratios, top holdings, and assets under management. Investors can find this information in a fund’s . Outline your asset mix: Before investing, do an inventory of all your assets, and calibrate your portfolio accordingly. Remember, the key is to remain diversified. Know what you own: By , you can take charge of your finances and make any necessary adjustments. Leverage any free resources from your broker, like meeting with a financial planner, and always ask questions. Ultimately, there’s no such thing as a hands-off investment. Bottom line
Since ancient times, gold has maintained a coveted status in society to symbolize wealth and power. For investors, gold serves as a portfolio hedge against market volatility and geopolitical unrest. And as , gold may continue to shine. Learn more
Note: Bankrate’s contributed to an update of this story. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. SHARE: Gio Moreano is a contributing writer, covering investment topics that help you make smart money decisions. Formerly an investing journalist and lead analyst for CNBC, he is passionate about financial education and empowering people to reach their goals. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Related Articles