Top Best Gold ETFs in India 2025

Gold ETFs are the best choice for investing in gold digitally, with no hidden charges. When evaluating the best Gold ETF in India, it is essential to consider factors such as the fund's Assets Under Management (AUM), tracking error, expense ratio, and liquidity. 

Whether you're a first-time investor or a seasoned portfolio manager, this guide breaks down the best Gold ETF in India 2025 with a clear, data-backed list and an in-depth look at the top performer. Let’s dive into the gold rush digitally.

Key Highlights:

• Gold remains a trusted hedge against inflation, currency weakness, and global uncertainty in 2025. 
• Domestic gold prices up over 26% YTD, and institutional inflows pushing Gold ETF AUM beyond ₹60,000 crore.

Top Gold ETFs in India (2025)

Here are the top 5 Gold ETFs in India ranked by AUM, liquidity, returns, and cost-efficiency:.

 Data Source: NSE, AMFI, and fund factsheets (Oct 2025). 

Overview of the Best Gold ETFs in India

Nippon India ETF Gold BeES:

Nippon India ETF Gold BeES is an open-ended, passively managed exchange-traded fund (ETF) launched on March 8, 2007, that aims to track the domestic price of gold through investments in physical gold.

It is listed on the NSE and BSE, enabling easy trading on exchanges, and is managed by Vikram Dhawan.

The fund is suitable for investors seeking returns that closely track the price of gold, although performance may vary slightly due to expenses.

Why It Stands #1 in 2025:

• Market Leader: Commands 30-35% of total Gold ETF AUM in India (₹32,000-33,000 Cr).
• Competitive Cost: Expense ratio of 0.79-0.80%.
• Superior Liquidity: Highest daily trading volume (often >1-2 million units), ensuring minimal bid-ask spreads.
• Tight Tracking: Historical tracking error under 0.5-0.8%, very closely mirroring domestic gold prices.
• Proven Performance: YTD 2025: 66-67%; 5-Year CAGR: 17-18%; Since Inception: 13% annualised.

HDFC Gold ETF:

HDFC Gold ETF is an open-ended, passively managed exchange-traded fund launched on August 13, 2010, that aims to generate returns in line with the performance of physical gold, subject to tracking error.

It is listed on the NSE and BSE, and is managed by Krishnakumar Bhagyesh Kagalkar.

The fund is ideal for investors seeking a reliable, large-cap gold tracker from a trusted asset management company.

Why It Stands Strong in 2025:

• Strong Size & Growth: AUM  of ₹15,000-16,000 Cr, benefiting from massive inflows.
• Balanced Cost: Expense ratio of 0.59%, competitive in the category.
• Excellent Tracking Accuracy: One of the lowest historical tracking errors (0.4-0.6%), closely following gold prices with minimal deviation.
• High Liquidity: Good daily volumes and tight spreads, backed by a reputable AMC.
• Proven Performance: YTD 2025: 65-66%; 5-Year CAGR: 18-19% showing Strong long-term consistency.

SBI Gold ETF:

SBI Gold ETF is an open-ended, passively managed exchange-traded fund launched on April 28, 2009, that seeks to generate returns corresponding to the price of gold through investment in physical gold.

It is listed on the NSE and BSE, and is managed by Raviprakash Sharma.

The fund appeals to investors who value the backing of India's largest public-sector bank and a high institutional/retail trust.

Why It Stands Strong in 2025:

• Trusted Backing: AUM  ₹14,000-15,000 Cr, with strong inflows from retail and institutional investors.
• Reasonable Cost: Expense ratio of 0.64-0.70%.
• Solid Liquidity & Trust: High trading volumes and widespread recognition due to SBI's brand.
• Consistent Tracking: Tracking error typically under 0.7%, reliable performance over the years.
• Proven Performance: YTD 2025: 65-66%; 5-Year CAGR: 17-18% favoured for stability and accessibility.

ICICI Prudential Gold ETF:

ICICI Prudential Gold ETF is an open-ended, passively managed exchange-traded fund launched on August 24, 2010, that seeks returns closely tracking domestic gold prices, subject to tracking error.

It is listed on the NSE and BSE, and is managed by Gaurav Chikane and Nishit Patel.

The fund suits cost-conscious investors seeking efficient, long-term gold exposure from a leading private-sector AMC.

Why It Stands Strong in 2025:

• Growing Scale: AUM ₹10,500-11,000 Cr, with steady investor additions.
• Low Cost Advantage: Expense ratio of 0.50%, among the lowest in the category.
• Good Liquidity: Improving volumes and narrow spreads.
• Reliable Tracking: Low historical tracking error (0.4-0.6%), often delivering slightly better net returns due to lower fees.
• Proven Performance: YTD 2025: 66-68% ; 5-Year CAGR: 18%; Competitive long-term returns.

Kotak Gold ETF:

Kotak Gold ETF is an open-ended, passively managed exchange-traded fund launched on July 27, 2007, that aims to generate returns in line with the prices of physical gold in India.

It is listed on the NSE and BSE, and is managed by Abhishek Bisen.

The fund is perfect for investors prioritising minimal deviation from actual gold prices over the long term.

Why It Stands Strong in 2025:

• Solid Size: AUM ₹10,500-11,000 Cr.
• Attractive Cost: An expense ratio of 0.55%, which is very competitive.
• Best-in-Class Tracking: Often the lowest tracking error in the category (0.3-0.5%), ensuring the closest possible match to gold returns.
• Decent Liquidity: Reliable trading volumes with tight spreads.
• Proven Performance: YTD 2025: 65-67%; 5-Year CAGR: ~18-19%. Excels in pure gold price mirroring.

Conclusion

The best gold ETF in India for 2025 is not a single fund, but rather a choice based on an investor's specific priorities, as major players like ICICI Prudential, Kotak, HDFC, and SBI offer highly competitive options with minor differences in returns, expense ratios, and liquidity.

Disclaimer: The information provided in the article shouldn't be taken as investment advice; it's only for educational purposes. Returns are absolute YTD. Past performance is not indicative of future results. Please read the scheme-related documents carefully before making an investment.

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1. Gold ETF: Meaning, Types, How to Invest and Works
2. How to Invest in Gold ETF?