Top Gold ETFs/ETCs
The Gold price
Gold is seen as a safe haven by many investors. Especially in financial turmoil, it has shown to stabilise equity/bond portfolios.
An investment in gold is easily done with listed products, like ETFs or ETCs. These investment products track the spot gold price closely, after taking management fees into account. The advantage of exchange-traded Gold products is the minimal bid-ask spread compared to a direct trade in gold bullion. It is mainly due to the large 12.5kg bullion that are held and traded at fund level. Currently, Gold is tracked by 7 ETFs and/or ETCs.
Besides exchange-traded products on Gold in US dollar, there are also currency hedged products in euro, pounds sterling or Swiss francs available. These products are also considered in our comparison.
The difference between Gold ETFs and Gold ETCs
The diversification principals of the regulatory investment fund framework (UCITS) do not allow to launch a UCITS fund with only one constituent like Gold. Due to this fact, gold is mainly available as exchange-traded commodity (ETC) in European countries. These products are certificates issued by a financial institution collateralized with physical gold. In contract to the EU, Swiss regulation allows for Gold ETFs.
Cost of Gold ETFs/ETCs
The total expense ratio (TER) of Gold ETCs is between 0.25% p.a. and 0.40% p.a.. These costs contain insurance premium, storage costs and additional management fees for the product.
The best Gold ETF/ETC by 1-year fund return as of 31/12/16
The largest Gold ETF/ETC by fund size in GBP
The cheapest Gold ETF/ETC by total expense ratio
|1||iShares Physical Gold ETC||0.25% p.a.|
|2||db Physical Gold ETC||0.29% p.a.|
|3||Source Gold P-ETC A||0.29% p.a.|
Gold ETFs/ETCs in comparison
Besides return, there are further important factors to consider when selecting a Gold ETF or ETC. In order to provide a sound decision basis, you find a list of all Gold ETFs/ETCs with details on size, cost, age, currency hedge, instrument type and collateral ranked by fund size.
in m GBP
|Currency hedge||Instrument type||Replication method|
|ETFS Physical GoldJE00B1VS3770||4,630||0.39% p.a.||-||ETC||Physically backed|
|Gold Bullion SecuritiesGB00B00FHZ82||3,011||0.40% p.a.||-||ETC||Physically backed|
|Source Gold P-ETC AIE00B579F325||2,830||0.29% p.a.||-||ETC||Physically backed|
|iShares Physical Gold ETCIE00B4ND3602||1,957||0.25% p.a.||-||ETC||Physically backed|
|db Physical Gold ETCGB00B5840F36||436||0.29% p.a.||-||ETC||Physically backed|
|ETFS Physical Swiss GoldJE00B588CD74||362||0.39% p.a.||-||ETC||Physically backed|
|ETFS GBP Daily Hedged Physical GoldJE00B7VG2M16||67||0.39% p.a.||
Source: justETF.com; As of 20/01/17
Return comparison of all Gold ETFs/ETCs
The table shows the returns of all Gold ETFs/ETCs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best Gold ETF/ETC, you can also perform a chart comparison.
|iShares Physical Gold ETC||-0.32%||-7.80%||-4.38%||31.17%||28.62%|
|Source Gold P-ETC A||-0.32%||-7.79%||-4.38%||31.11%||28.50%|
|db Physical Gold ETC||-0.33%||-7.80%||-4.39%||31.09%||28.48%|
|ETFS Physical Gold||-0.34%||-7.81%||-4.44%||30.96%||28.11%|
|ETFS Physical Swiss Gold||-0.35%||-7.81%||-4.43%||30.96%||28.10%|
|Gold Bullion Securities||-0.35%||-7.83%||-4.46%||30.92%||27.99%|
|ETFS GBP Daily Hedged Physical Gold||-2.06%||-13.06%||-13.80%||6.59%||-8.95%|
|Source Gold P-ETC A||-||31.11%||-7.21%||5.62%||-29.63%|
|iShares Physical Gold ETC||-||31.17%||-7.15%||5.61%||-29.29%|
|ETFS Physical Gold||-||30.96%||-7.29%||5.51%||-29.71%|
|Gold Bullion Securities||-||30.92%||-7.32%||5.48%||-29.72%|
|db Physical Gold ETC||-||31.09%||-7.19%||5.61%||-29.64%|
|ETFS Physical Swiss Gold||-||30.96%||-7.29%||5.51%||-29.70%|
|ETFS GBP Daily Hedged Physical Gold||-||6.59%||-13.25%||-1.53%||-|
Source: justETF.com; As of 31/12/16; Calculations in GBP including dividends