Best Gold ETFs USA: A Comprehensive Guide to Investing in Gold

Investing in gold through ETFs (Exchange-Traded Funds) is a popular way to add a touch of diversification to your portfolio. This is because gold ETFs allow you to gain exposure to the price of gold without having to physically hold the metal.

There are several gold ETFs available in the USA, each with its own unique features and benefits. Some of the most popular gold ETFs include SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and VanEck Vectors Gold Miners ETF (GDX).

One of the key advantages of gold ETFs is their liquidity, which makes it easy to buy and sell shares quickly. This is because gold ETFs are traded on major stock exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ.

If you're looking to invest in gold ETFs in the US, there are some impressive options to consider. The VanEck Junior Gold Miners ETF (GDXJ) is one such fund, which invests in foreign small-cap mining companies that generate at least half of their revenues from gold and silver.

This fund has seen a strong 2024 YTD performance of 27.6 percent. Its expense ratio is relatively low at 0.52 percent, making it a cost-effective choice for investors.

For a broader look at top gold ETFs, Bankrate selected its top funds based on specific criteria. These funds are US-based, have at least $800 million in assets under management, and have expense ratios under 0.60 percent.

VanEck Miners (GDX) is one of the most popular ETFs in the global mining sector. It owns all the major names in the mining space, apart from gold, some of these firms also mine for metals like silver and copper.

The fund's 2024 YTD performance is 21.4 percent, which is a respectable return in a year that's seen significant market fluctuations. Its five-year annual return is 7.7 percent, which is a decent long-term growth rate.

One thing to keep in mind is the fund's expense ratio, which is 0.51 percent. This is slightly higher than some other gold ETFs, but it's still relatively low compared to other investment options.

Here are some key statistics about VanEck Miners (GDX):

The cost of investing in gold ETFs is relatively low, with a total expense ratio (TER) ranging from 0.00% to 0.59% per annum.

You can expect to pay a management fee of up to 0.59% per year for some gold ETCs, which includes insurance premiums, storage costs, and additional management fees.

In comparison, the iShares Gold Trust (IAU) has a lower expense ratio of 0.25% per year, making it a more cost-effective option.

Here's a breakdown of the costs associated with gold ETFs:

This means that if you invest $10,000 in a gold ETF with a 0.50% TER, you'll pay $50 in fees per year.

If you're looking to invest in gold, you've got options. Bankrate selected its top funds based on specific criteria.

To qualify, U.S. funds must appear in ETF.com's screener for gold or materials ETFs.

Funds with assets under management of at least $800 million made the cut.

Expense ratios under 0.60 percent were also a requirement.

Here are some top gold ETFs that met these criteria:

If you're looking for a gold ETF/ETC that's delivered strong returns, you'll want to consider the top performers. The Invesco Physical Gold A fund has taken the top spot with a 1-year fund return of 44.07% as of December 31, 2024.

The top three gold ETFs/ETCs ranked by fund return are a good starting point for your research. Here are the top three:

Gold is considered a safe haven by many investors, especially during financial turmoil when it helps stabilize equity and bond portfolios.

The price of gold is easily tracked with listed products like ETFs or ETCs, which closely follow the spot gold price after deducting management fees.

These exchange-traded gold products have a minimal bid-ask spread compared to direct trades in gold bullion, mainly due to the large 12.5kg bullion held and traded at fund level.

Currently, gold is tracked by 19 ETFs and/or ETCs, providing investors with a range of options for investing in gold.

Gold can also be invested in through currency-hedged products, which are considered in our comparison.

Looking at the 1-year fund returns as of 31.12.24, we can see that the top performer is Invesco Physical Gold A with a return of 44.07%. This is a significant gain, indicating a strong performance in the gold market.

The top three performers are Invesco Physical Gold A, boerse.de Gold ETC, and EUWAX Gold II, with returns of 44.07%, 37.75%, and 37.34% respectively.

Invesco Physical Gold A's return is more than 6% higher than the second place holder, boerse.de Gold ETC. This suggests a substantial difference in performance between the two funds.

Here is a list of the top three performers:

Investing in gold ETFs can be a smart move for your portfolio. Here are some benefits and reasons to consider.

Diversification is a key reason to invest in gold ETFs. By owning a gold ETF, you're spreading your risk across multiple assets, which can minimize losses if one asset performs poorly.

Gold ETFs have a low correlation to the stock market, making them a great addition to a diversified portfolio. In times of market volatility, gold prices may rise, while the stock market falls.

Investing in gold ETFs can also help you hedge against inflation. Historically, gold has performed well during periods of high inflation, particularly in the 1970s.

Gold ETFs offer several advantages over investing in physical gold. They're cheaper to buy and sell, with lower costs and no entry or exit loads.

Here are some key benefits of investing in gold ETFs:

In addition to these benefits, gold ETFs can also be used as a safe haven asset and store of value. In times of economic uncertainty, investors often turn to gold as a way to protect their wealth.

Investing in gold ETFs can also provide tax benefits. Unlike physical gold, gold ETFs do not attract VAT, Securities Transaction Tax, or wealth taxes, making them a more tax-efficient option.

To invest in a gold ETF, you first need to determine your financial goals. This will help you decide whether to invest in physical gold or public companies involved in gold mining, as these two asset classes have different risk profiles.

The next step is to research gold funds, paying attention to factors such as the fund's performance, expense ratios, top holdings, and assets under management. You can find this information in the fund's prospectus.

To stay on track, it's essential to outline your asset mix and periodically review your investments to ensure you're diversified. This will also help you make any necessary adjustments to your portfolio.

Here are some key factors to consider when selecting gold ETFs:

Remember, it's essential to know what you own and to regularly review your investments to ensure they align with your financial goals.

A gold ETF is essentially a way to invest in gold without actually holding the physical metal. It's traded on a stock exchange like any other stock.

The price of a gold ETF is directly linked to the price of gold, so if gold goes up, the ETF value will likely increase too. This means you can buy and sell shares of the ETF on the stock exchange, just like any other stock.

The ETF holds gold assets like bullions or futures contracts, which gives it a direct correlation to the gold price. For instance, if gold price increases by 2%, the ETF value may also increase by 2% approx.

One of the most popular gold ETFs is the SPDR Gold Shares (GLD), which invests in physical gold. Its performance is highly correlated to gold spot prices, making it a reliable choice for investors.

Here are some key statistics about the GLD ETF:

The low expense ratio of 0.40 percent is a significant advantage for investors, as it means they can keep more of their returns.

To start buying gold ETFs, you need to determine your financial goals. This will help you decide which investment strategy to follow.

Research is key when selecting gold funds. Look for information on the fund's performance, expense ratios, top holdings, and assets under management in the fund's prospectus.

Your asset mix is also crucial to consider. Take an inventory of all your assets and calibrate your portfolio accordingly to remain diversified.

To stay on top of your finances, periodically review your investments and make any necessary adjustments. Don't be afraid to ask questions or seek advice from a financial planner if needed.

Here are some key factors to consider when selecting gold ETFs: