Gold ETFs can provide convenient exposure to the gold price without requiring investors to buy, insure or store bullion. This article compares the leading ASX-listed gold ETFs and explains the differences that matter most.
Quick answer: which gold ETF is best?
Stockspot’s preferred gold ETF is Global X Physical Gold (ASX: GOLD) due to its long track record, allocated physical backing, large fund size, high liquidity and tight trading spreads. However, the best gold ETF for an individual investor depends on factors including fees, currency hedging, product structure and how the investment fits within a diversified portfolio. We’ll explore these throughout this article.
You might also find these other gold-related articles helpful:
- Best ways to buy gold
- Why super funds should own more gold
- All your investing in gold questions answered
- Investing your superannuation into gold
Investing in gold
When you think of gold, you probably don’t think of gold ETFs.
Instead, you might picture an 18-carat gold necklace from Tiffany & Co – but in truth, only half of global demand for gold comes from jewellery.
The other half comes from investors – governments, banks and everyday people who buy it for its value – and for industrial uses, such as in technology.
Gold’s limited supply and long history as a store of value help explain its continued role in investment portfolios. However, its price can still be volatile and it does not produce income in the same way as shares or bonds.
We’ve written previously about how gold helps your portfolio and why gold is a portfolio diversifier, we see it as an important part of any investors portfolio (and superannuation fund).
In this article we’ll cover:
- Why gold as an investment?
- How do you buy gold ETFs in Australia?
- Which gold ETF is best?
- What are the best gold miner ETFs?
- Verdict and conclusion
Why gold as an investment?
Gold can play a diversifying role because its returns are driven by different factors from shares and bonds. It has sometimes performed strongly during market stress, falling real interest rates, inflation concerns or weakness in the Australian dollar.
For example, during the coronavirus market shock gold helped cushion some diversified portfolios. That does not mean gold will rise in every downturn, but its different return pattern can reduce reliance on share markets alone.
Gold has historically been a good performer in environments of low or negative real interest rates, or when interest rates minus inflation is negative.
Gold can have a low or negative correlation with shares during market downturns. Having assets with different correlations are key to enhancing investment returns and reducing risk.
How do you buy gold ETFs in Australia?
Australians can buy a gold ETF through an online broker or investment service in the same way they buy an ASX-listed share. Investors choose an ETF, place an order during ASX trading hours and pay the market price plus any brokerage and buy/sell spread.
Before gold ETFs, investors commonly gained exposure by purchasing bullion or shares in gold-mining companies. These options are not equivalent: bullion tracks the metal more directly, while miners are operating businesses affected by costs, management decisions and share-market conditions.
There’s a range of complexities with owning physical gold bullion such as storage costs, handling and insurance. Investors might also face barriers of high minimum investment amounts, with low liquidity and accessibility issues.
They have higher correlation to shares and will not perform the same as physical gold. They are an indirect exposure to gold and can sometimes be more volatile.
One of the simplest and most cost effective ways to gain gold exposure is through Exchange Traded Funds (ETFs) listed on the ASX.
Physical-gold ETFs aim to follow the gold price, less fees and trading costs, while the fund arranges custody and storage. Investors should still check whether the exposure is allocated or unallocated, hedged or unhedged, and physically backed or obtained through another structure.
All Stockspot portfolios have exposure to gold, aligned with your risk tolerance and time horizon.
Which gold ETF is best?
Following the success of our Australian ETF Report,
we compare the leading ASX-listed gold ETFs using five factors: fund size, management cost and trading spread, liquidity, returns, and product structure and track record.
We compare:
- Global X Physical Gold (GOLD)
- Perth Mint Gold (PMGOLD)
- BetaShares Gold Bullion ETF – Currency Hedged (QAU)
- VanEck Gold Bullion ETF (NUGG)
All data in this blog is as at 30 June 2026.
Note: In September 2022, ETFS Physical Gold was rebranded to Global X Physical Gold.
Size
All the gold ETFs of those compared saw FUM shrink between Q1 and Q2 2026.
GOLD is the largest gold ETF in the Australian market with almost $5.4 billion in funds under management (FUM), although the ETF shrunk by over $880 million between March and June 2026.
PMGOLD, the second largest ETF of those compared currently sits at $2.2 billion in FUM, having shrunk by almost $400 million from the quarter prior.
QAU, is significantly smaller than the GOLD ETF, with FUM of $1.1 billion in June 2026. QAU shrunk by $314 million between Q1 and Q2 2026.
NUGG is the newest gold ETF in the market, launching in December 2022, and despite rapid initial growth, is the smallest of the ETFs compared growing from $144 million in June 2025 to $221 million by 30 June 2026.
Costs and slippage
PMGOLD remains the lowest-cost GOLD ETF, and is almost half the cost of similar products, with a management fee of 0.15%. This is due to the smaller storage cost as a result of the structure of the ETF.
QAU remains the most expensive gold ETF at 0.59% given the additional cost of hedging back into AUD, which is useful for those who want to remove currency risk.
However, the spreads on GOLD are much narrower, at 0.03% whereas PMGOLD and NUGG have wider spreads at 0.08% and 0.10% respectively.
NUGG launched undercutting GOLD’s 0.40% management fee, charging 0.25% pa, but has a spread three times as large at 0.10%.
| ASX CODE | COST (INDIRECT COST RATIO) | BUY/SELL SPREAD (SLIPPAGE) |
| GOLD | 0.40% | 0.03% |
| PMGOLD | 0.15% | 0.08% |
| QAU | 0.59% | 0.06% |
| NUGG | 0.25% | 0.10% |
Liquidity
One of the key advantages of using an ETF to gain exposure to gold is the ability to quickly buy and sell your investments. GOLD is by far the most liquid gold ETF, trading approximately $17.9 million in average daily volume.
PMGOLD is the second most liquid ETF trading $15.6 million daily, while QAU follows behind at $11.6m. Given its infancy, NUGG trades just over $629,000 per day.
Returns
Following an incredibly strong run of returns in 2025, returns have begun to pull-back in 2026, averaging a more modest 16.2% 1 year return, down from average 1 year returns of 57.1% as at 31 December 2026.
Gold has been one of the best commodities to own in recent years, hitting all-time high prices as investors sought the security of the precious metal.
QAU (which is currency hedged) delivered the strongest 1-year returns at 19.4%.
Over the medium term GOLD, PMGOLD, QAU and NUGG all generated similar returns, with 3 year returns ranging from 25.4% p.a. to 26.0% p.a.
| 1 year return | 3 year return (p.a.) | 5 year return (p.a.) | |
| GOLD | 15.0% | 25.8% | 19.4% |
| PMGOLD | 15.3% | 26.0% | 19.7% |
| QAU | 19.4% | 25.4% | 15.4% |
| NUGG | 15.0% | 25.8% | n/a |
Track record and structure
GOLD was the first ETF in Australia to track gold, listing back in 2003.
PMGOLD followed shortly after, with QAU entering the market in 2011. NUGG is the most recent entrant launching in December 2022.
Not all gold ETFs track the same thing with some not made up of physical gold.
An important factor is the underlying structure of the gold ETF, and investors need to dig a little deeper to see if the gold ETF actually holds physical gold on your behalf or if it is getting the exposure via other means.
| ASX CODE | INDEX | ETF HISTORY (INCEPTION DATE) | Physical gold held in a vault in your name? |
| GOLD | LBMA Gold Price PM AUD | March 2003 | Yes – London, UK |
| PMGOLD | Spot Gold Price | May 2003 | No – Perth Mint |
| QAU | LBMA Gold Price AM USD | May 2011 | Yes – London, UK |
| NUGG | LBMA Gold Price PM AUD | December 2022 | Yes – Perth Mint |
The major difference to watch out for is whether the ETF uses allocated or unallocated gold. Allocated gold means you hold the physical gold. Unallocated gold is similar to an IOU, where you only have the right to acquire it.
| Allocated Gold | Unallocated Gold | |
| Who owns the gold | Investors | Issuer |
| Segregation | Yes – each gold bar has own individual identifier | No – holders not entitled to specific gold bars |
| Counterparty risk | No | Yes |
| Storage fees | Yes | None |
PMGOLD is an example of unallocated gold as the Perth Mint holds the gold on your behalf.
Despite being backed by the Western Australian government, if there was a default of the custodian bank you would have to get in line with other angry investors to get your gold back. This means you have no ownership over it.
Additionally, the bars can also be lent to third parties without consent of the individual investor. This is why PMGOLD has a lower management fee – they have smaller running costs given they don’t have to pay for physical storage.
GOLD, QAU and NUGG are physically backed by gold bullion which are stored by fund managers in a vault on behalf of investors. Investors are unit holders of the funds and can redeem their investment at any time for cash or in exchange for gold bars. These ETFs publish their bar list on the ETF issuer’s website which shows the bar identifier, refiner, weight and number of bars stored.
What about the best gold miner ETFs?
For investors who want exposure to companies that explore or mine for gold, there are two ETFs available:
- VanEck Vectors Gold Miners ETF (GDX)
- BetaShares Global Gold Miners ETF – Currency Hedged (MNRS)
GDX provides exposure to approximately 50 companies involved in mining gold and silver. It is unhedged with a large focus on North America charging 0.53% per year and has just under $1.3 billion in assets.
MNRS is a hedged version that invests in over 50 companies engaged in gold, silver or other metal mining. It is slightly more expensive because of the hedging protection, charging 0.57% per year, and is much smaller than GDX, accumulating just under $225 million since launching in July 2016.
There is a large overlap of holdings between the two with half of the companies in both ETFs, although GDX has more Australian gold mining companies.
Lastly, GDX has tighter spreads than MNRS (0.11% vs 0.22% respectively) and trades at considerably higher daily values at around $7.9 million vs $2.3 million. Stockspot clients can access gold miners as part of Stockspot Themes.
Click here to learn more about out gold miners and silver ETF options with Stockspot Themes.
New gold ETF market entry
ASX: GLDN
iShares launched their Physical Gold ETF (ASX:GLDN) in October 2023. The GLDN ETF aims to track the spot price of gold. The ETF is designed to provide investors with exposure to the gold market without the need to own physical gold bars.
Since inception GLDN has grown steadily, increasing FUM to $393 million and delivering a 1-year return of 15.2%. GLDN charges 0.18% in management fee.
ASX: GXLD
2024 saw Global X release a new Gold Bullion ETF, GXLD, inception 29th of April 2024. The Global X ETF tracks the performance of the price of gold bullion, in Australian dollars, by referring to the gold’s spot price. The assets of GXLD are held in the vaults of JP Morgan Chase Bank in London.
Global X GXLD ETF offers investors access to unallocated gold. GXLD has seen FUM reduce slightly between Q1 and Q2 2026, falling from from $626 million to $619 million, and returned 14.9% over the past 1 year to 30 June 2026. GXLD charges a management fee of 0.15%, matching that charged by PMGOLD.
ASX: GHLD
2025 has seen Global X launch its third gold-focused ETF with the Global X Gold Bullion (Currency Hedged) ETF (GHLD), inception 27 March 2025. GHLD provides exposure to the price of physical gold by tracking the performance of the price of gold bullion currency-hedged into Australian dollars. GHLD has a management fee of 0.35% and has quickly increased FUM from over $100 million in Q3 2025 to $224 million in Q2 2026.
Gold ETFs verdict
We’ve advised Stockspot clients to have an allocation to gold via the GOLD ETF since 2014. GOLD is physically backed by gold bullion which is stored in a vault in London that is allocated to investors.
It’s unhedged so investors benefit from a falling Australian dollar. It provides the purest exposure to gold, being the oldest ETF in the market with the largest size, tightest spreads and plenty of liquidity.
Conclusion
Gold ETFs can provide liquid, cost-effective exposure to gold without requiring investors to arrange bullion storage and insurance themselves.
Gold may help diversify a portfolio and cushion losses in some market downturns. The key is to use gold as one component of a diversified investment strategy rather than as a standalone solution.
When comparing gold ETFs, consider whether the product holds bullion or mining shares, whether currency exposure is hedged, the legal structure, management fee, trading spread, liquidity and track record.
Picking the right ETF to balance your portfolio can be hard. Stockspot builds and manages diversified ETF portfolios based on each client’s goals, risk tolerance and time horizon. Complete the free portfolio quiz to see which portfolio may suit you.
If you’re not sure what ETF to invest in, leave the hard work to our expert team at Stockspot and let us create and manage your investment portfolio.
Missing gold in your superannuation?
Explore Stockspot Super and find a super product with a 12.3% allocation to gold – find out more here.
FAQ’s
What is the cheapest gold ETF in Australia?
The cheapest gold ETF depends on whether you compare only the management fee or the total trading cost. Investors should consider the annual fee together with the buy/sell spread, brokerage, liquidity and tracking difference.
Is GOLD or PMGOLD better?
GOLD uses allocated physical bullion and has historically offered strong liquidity and tight spreads. PMGOLD has a lower headline management fee and a different unallocated structure. The choice depends on how an investor weighs structure, costs and liquidity.
Do gold ETFs actually hold physical gold?
Many gold ETFs hold physical bullion, but the ownership and custody structure varies. Some use allocated bars, while others provide unallocated exposure. Check the current product disclosure statement before investing.
Should I choose a hedged or unhedged gold ETF?
A hedged gold ETF aims to reduce the effect of Australian-dollar movements. An unhedged ETF exposes investors to both gold and currency movements, which can help when the Australian dollar falls but detract when it rises.
Do gold ETFs pay dividends?
Physical-gold ETFs generally do not generate dividend income because gold bullion does not produce cash flow. Gold-miner ETFs may receive and distribute dividends from the mining companies they hold.
Can I invest in a gold ETF through super?
Gold exposure may be available through some super funds, self-managed super funds and investment platforms. Availability, portfolio limits and tax treatment depend on the structure used and the fund’s rules. All Stockspot Super portfolios include an allocation to gold.
What are the risks of investing in a gold ETF?
Risks can include falling gold prices, currency movements, tracking difference, trading spreads, liquidity, custody or counterparty exposure, and the opportunity cost of holding an asset that does not produce income.
