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 to invest in gold in Australia?
There are several ways to invest in gold, but not all are equally efficient.
Physical Gold (Bullion)
Traditional forms of gaining exposure to gold involved buying physical gold bullion (i.e. bars/coins). Buying gold bars or coins gives you direct ownership, but comes with drawbacks:
- Storage and insurance costs
- Security risks
- Lower liquidity
- Higher minimum investment amounts
Gold Mining Shares
Investors can also gain exposure to gold markets by owning shares in gold mining companies.
Gold mining companies are easy to trade, but they are not the same as investing in gold itself.
Their performance depends on:
- Company profitability
- Operational risks
- Broader share market movements
As a result, gold miners tend to be more volatile and less defensive than physical gold. Investors might also face barriers of high minimum investment amounts, with low liquidity and accessibility issues. Gold miners shares also 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.
Gold ETFs
One of the simplest and cost effective approaches to owning gold is through Exchange Traded Funds (ETFs) listed on the ASX.
Gold ETFs:
- Track the price of physical gold
- Trade like shares on the ASX
- Remove the need for storage or insurance
- Offer high liquidity and accessibility
They are designed to offer investors a simple, cost efficient and secure way to access physical gold by providing a return equivalent to the movement of the gold price without the inconvenience and costs involved for transport, storage and insurance.
All Stockspot portfolios have exposure to gold, aligned with your risk tolerance and time horizon.
Which is the best gold ETF in Australia?
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 31 September 2026.
Note: In September 2022, ETFS Physical Gold was rebranded to Global X Physical Gold.
Size
GOLD remains the largest gold ETF in the Australian with approximately $5.8 billion in funds under management (FUM), growing by almost $425 million between 30 June 2026 and 30 September 2026. This growth reflects sustained investor demand for gold exposure.
PMGOLD, is the second largest ETF of those compared, with FUM reaching $2.4 billion by 30 September 2026. While significantly smaller than GOLD, PMGOLD has maintained solid growth and remains a major player in the Australian gold ETF market.
QAU continues to grow steadily, with FUM rising to around $1.2 billion as at 30 September 2026, a growth of roughly $208 million from the quarter prior.
NUGG, having launched in December 2022, saw rapid initial growth that has now dampened, and is the smallest of the ETFs compared. NUGG currently has almost $248 million in FUM (as at 30 September 2026).
By comparison GXLD, the newest of the ETFs compared, launched in April 2024, and has grown to $766 million in FUM.
Costs and slippage
PMGOLD and GXLD remain the lowest-cost GOLD ETF in Australia of those compared, with a management fee of 0.15% per year, significantly cheaper than their peers.
PMGOLD’s low cost is largely due to its unique structure, which reduces storage expenses compared to physically backed alternatives, while GXLD launched in an aggressive competitive position, designed to be the lowest-cost physically backed ETF in the Australian market, undercutting higher-cost products like GOLD.
QAU remains the most expensive gold ETF with a management fee of 0.59%. This reflects the additional cost of hedging back into AUD, which is useful for those who want to remove currency risk and remove USD currency exposure.
GOLD sits in the middle, charging 0.40% per year, while NUGG undercuts this at 0.25%, positioning itself as a lower-fee alternative.
However, management fees are only part of the total cost, buy/sell spreads also play a key role. Despite not having the lowest management fee, GOLD offers the tightest spread by a significant margin, making it the most cost-efficient ETF to trade. This is likely due to its larger size and higher liquidity, which typically results in lower transaction costs.
By contrast, NUGG’s lower management fee is offset by its wider spread, meaning investors may pay more when entering and exiting the fund. Similarly, QAU’s higher spread adds to its already higher fee, making it one of the more expensive options overall.
Why this matters: When comparing gold ETFs in Australia, investors should consider both management fees and trading spreads, as the true cost of investing depends on how long you hold the ETF and how frequently you trade.
| ASX CODE | COST (INDIRECT COST RATIO) | BUY/SELL SPREAD (SLIPPAGE) |
| GOLD | 0.40% | 0.04% |
| PMGOLD | 0.15% | 0.06% |
| QAU | 0.59% | 0.06% |
| NUGG | 0.25% | 0.08% |
| GXLD | 0.15% | 0.05% |
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 on the ASX.
GOLD remains the most liquid gold ETF in Australia, trading approximately $12.2 million in average daily value. This significantly higher trading volume supports tighter spreads and easier execution, particularly for larger trades.
PMGOLD is the second most liquid ETF with around $11.9 million in daily trading volume.
QAU follows with approximately $3.7 million in daily traded value, offering reasonable liquidity but at a noticeably lower level than the two largest funds.
NUGG, as the newest and smallest ETF, remains the least liquid, with around $1.2 million traded per day. While still accessible for most investors, lower trading volumes can lead to wider spreads and higher transaction costs, particularly for larger orders.
Why liquidity matters: Higher liquidity generally means lower trading costs, tighter spreads, and the ability to enter or exit positions more easily, making it an important factor when choosing a gold ETF in Australia.
Returns
Returns from Gold have dampened throughout 2026, down from record highs in 2025 and early 2026. As at 30 September 2026, 1-year returns across major gold ETFs range from the mid 1.7% to 6.6%.
QAU outperformed its peers over the 1 year period, being the standout short term performer generating returns of 6.6%. This could largely reflect the impact of its currency hedging strategy, which can enhance returns when the Australian dollar weakens.
Over longer time periods, returns across GOLD, PMGOLD and NUGG are broadly similar, reinforcing that performance differences are generally driven by fees and structure rather than underlying exposure to gold.
Key takeaway: While gold ETF returns tend to track the gold price closely, small differences in fees, currency exposure, and structure can lead to differences in performance over time.
| 1 year return | 3 year return (p.a.) | 5 year return (p.a.) | |
| GOLD | 1.7% | 26.9% | 19.6% |
| PMGOLD | 1.9% | 27.2% | 19.9% |
| QAU | 6.6% | 28.6% | 16.9% |
| NUGG | 1.8% | 27.0% | n/a |
| GXLD | 2.0% | n/a | 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 |
| GXLD | Solactive Gold Spot London Close Index | April 2024 | Yes – London, UK |
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, GXLD 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 $1.5 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 $256 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 (0.05% vs 0.16% respectively) and trades at considerably higher daily values at around $6.4 million vs $1.7 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 $458 million and delivering a 1-year return of 1.8%. GLDN charges 0.18% in management fee as at 30 September 2026.
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 has seen strong inflows, growing FUM from $484 million by 31 December 2025 to $766 million by 30 September 2026. GXLD charges a management fee of 0.15%, matching that charged by PMGOLD.
ASX: GHLD
2025 saw 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 increased FUM from over $100 million in Q3 2025 to $240 million by Q3 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.
