Gold often draws attention as an inflation hedge when interest rates shift and market volatility rises. It can support portfolio diversification, but gold isn’t a shortcut to guaranteed gains.
In this guide, I’ve picked the 6 best gold ETFs to invest in 2026. I’ve looked at their fees, liquidity, structure, and tax treatment. As such, you should pick the one that best matches your specific goals.
Here’s the practical comparison!
6 Best Gold ETFs to buy: Quick overview
| Ticker | Fee | Best for | |
| SPDR Gold Shares | GLD | 0.40% | Active traders and investors who prioritize deep liquidity and easy execution for large trades |
| iShares Gold Trust | IAU | 0.25% | Investors looking for a balance between relatively low fees, scale, and strong liquidity |
| SPDR Gold MiniShares Trust | GLDM | 0.10% | Long-term investors who prioritize keeping annual costs as low as possible |
| abrdn Physical Gold Shares ETF | SGOL | 0.17% | Investors seeking relatively low-cost exposure to physical gold bullion |
| GraniteShares Gold Trust | BAR | 0.1749% | Investors who want low-cost physical gold exposure and generally make modest-sized trades |
| VanEck Merk Gold Trust | OUNZ | 0.25% | Investors who value the option to exchange their shares for physical gold |
The best gold ETFs to invest in 2026
All six funds are designed to provide direct physical gold exposure and generally seek to reflect the price of gold, less fees and expenses. They hold gold bullion rather than gold mining companies, and they aren’t built around futures contracts.
Unlike these funds, a gold mining ETF such as VanEck Gold Miners ETF owns mining companies, which creates company-specific and equity-market risks.
The main differences come down to:
- Annual expenses
- Daily trading depth
- Bid-ask spreads
- Assets under management
- Special features
These factors can affect execution quality, especially for larger orders. For example, a fund with a lower expense ratio can be a better long-term fit. A fund with heavier trading may be easier to buy or sell at a fair price when the order is large.
1. SPDR Gold Shares (GLD) offers deep liquidity for large trades
Best for: active traders and investors who value maximum liquidity and easy execution, especially with larger trades.
SPDR Gold Shares, ticker GLD, is a physically backed gold trust. It’s one of the most recognized names in the category and has long been a default option for investors seeking simple gold-price exposure. In a way, it’s the gold ETF that sets the standard.
Its gross expense ratio is 0.40%. That fee is the main tradeoff. GLD isn’t the cheapest route to bullion exposure.
What it offers is deep market liquidity, broad recognition, and convenient execution. That’s very important if you trade actively, use options, or place larger orders. A narrow spread can matter more than a few basis points of annual cost.
Pros:
- It provides exposure backed by physical gold bullion
- GLD has a large, established trading market
- Strong liquidity can make larger trades easier to execute
- The trust structure is simple to understand
Cons:
- The 0.40% expense ratio is higher than the lower-cost choices here
- Gold prices can fall, sometimes sharply
- Physical-gold trust gains may receive collectible tax treatment in taxable accounts
2. iShares Gold Trust (IAU) balances low fees with strong liquidity
Best for: cost-conscious investors who still want a large and liquid gold ETF.
iShares Gold Trust, ticker IAU, is another major physical gold trust. It owns bullion and is designed to track the price of gold less its expenses.
IAU’s sponsor fee is 0.25% annually, according to the iShares Gold Trust prospectus. That gives it a meaningful cost advantage over GLD, while still offering a large asset base and active trading.
For many buy-and-hold investors, this is a nice middle ground. You get a widely traded fund without paying GLD’s higher annual fee.
Still, it doesn’t provide a regular dividend yield because its bullion holdings do not generate operating income. Its expenses reduce returns over time, and gold can move against you.
Pros:
- The 0.25% fee is competitive
- IAU is backed by physical bullion
- It has a large, widely followed market
- It can fit investors who want both lower costs and trading flexibility
Cons:
- It has no dividend or interest income
- Annual expenses still create a drag over long holding periods
- Review current tax documents before buying in a taxable account
3. SPDR Gold MiniShares (GLDM) keeps gold exposure costs low
Best for: investors, including long-term investors who prioritize a low annual cost.
SPDR Gold MiniShares Trust, ticker GLDM, is great for investors who want direct gold exposure with a smaller annual fee.
Its expense ratio is 0.10%, which is the lowest on the list. Considering that annual costs can compound into meaningful savings over a multiyear holding period, that’s a significant advantage.
GLDM is highly liquid for most investors, although GLD remains much larger and may offer greater market depth for exceptionally large trades. GLD also has listed options, while GLDM currently doesn’t.
Pros:
- The 0.10% expense ratio is the lowest on this gold ETF list
- It provides direct exposure to physical gold
- Lower annual costs can help long-term holders
- It avoids company-specific mining-stock risk
Cons:
- Liquidity may differ from GLD, especially for larger orders
- It produces no regular income
- Gold price and collectible-tax risks may still apply
4. abrdn Physical Gold Shares ETF (SGOL) provides lower-cost bullion exposure
Best for: investors seeking reasonably low-cost physical gold exposure.
abrdn Physical Gold Shares ETF, ticker SGOL, is a physically backed gold ETF that seeks to reflect the LBMA Gold Price.
SGOL charges a 0.17% expense ratio, which is certainly on the low end. Its size and trading activity can change, so do not treat any ranking as permanent.
The same risks remain, including falling gold prices, expense drag, bid-ask spreads, and possible collectible tax treatment in a taxable brokerage account.
Pros:
- Its stated 0.17% fee is lower than GLD’s
- The fund is designed for physical bullion exposure
- It has established trading activity
- It can be a practical middle-cost option
Cons:
- It may have less scale than the biggest gold funds
- Gold remains volatile
- Tax treatment can differ from stock ETF taxation
5. GraniteShares Gold Trust (BAR) focuses on simple, low-cost physical gold
Best for: investors who want low-fee physical gold exposure and usually trade modest amounts.
GraniteShares Gold Trust’s ticker is BAR. From what I could find, its physical gold is stored in a secure London vault, and the trust charges a 0.1749% annual sponsor fee.
BAR’s smaller trading footprint compared with GLD and IAU is the main practical limitation. For modest purchases, that may not matter much. For larger orders, a wider spread can add an immediate cost. Use a limit order instead of assuming the displayed price is the price you will receive.
Pros:
- Its fee is generally positioned as low cost
- The trust holds physical gold
- The structure is direct and easy to follow
- It avoids mining-company operating risk
Cons:
- Trading volume can be lower than GLD and IAU
- Bid-ask spreads may matter more on larger orders
- Expenses and gold-price declines can reduce returns
6. VanEck Merk Gold ETF (OUNZ) offers the option to take physical delivery
Best for: investors who value the option to take physical delivery of gold.
VanEck Merk Gold Trust, ticker OUNZ, holds allocated London Bars, but its unique feature is that investors can apply to exchange their shares for physical gold.
The physical-delivery feature appeals to investors who want the option to convert their ETF shares into actual gold bars or coins.
OUNZ has a 0.25% expense ratio. The fund still trades as ETF shares. Buying a share does not automatically mean you own a personally labeled bar or can redeem shares for gold without following the fund’s conversion rules and paying any applicable costs.
Liquidity, gold-price risk, expenses, and tax questions still apply. Read the latest prospectus closely if the allocation and conversion feature is part of your decision.
Pros:
- It has physical gold backing
- Investors can apply to take physical delivery of gold
- Its stated 0.25% fee matches IAU’s published fee level
- It’s great for investors who value the physical-delivery option
Cons:
- Trading volume may be lower than the largest funds
- Conversion rules and costs require careful review
- It pays no income and still carries gold-price risk
How to choose the best gold ETF to buy for your portfolio?
Start with the annual fee and compare the expense ratio over your expected holding period. A 0.10% expense ratio and a 0.40% expense ratio may not feel far apart today. Over many years, the difference can reduce the value you keep, especially if gold prices move slowly.
Don’t judge fund performance by fees alone. Compare costs with tracking quality, liquidity, and exposure to gold prices.
Then look at liquidity. Check average trading volume, fund assets, and the bid-ask spread during market hours. Active traders and investors placing large orders may prioritize tighter spreads and deeper markets.
All six funds here are intended to provide direct exposure through physical gold. Physically backed funds generally seek to follow the price of gold, less expenses. That is different from a gold mining ETF such as VanEck Gold Miners ETF, which owns gold mining companies.
Its returns can also reflect operating costs, debt, management decisions, and stock-market conditions.
Use your goal to narrow the list:
- Choose GLD when deep liquidity is your first priority
- Consider IAU or GLDM when annual cost matters more
- Look at SGOL or BAR for lower-cost bullion exposure
- Consider OUNZ when the option to take physical delivery fits your preference
Also consider your account type, holding period, need for cash, and risk tolerance. Review the latest fact sheet and prospectus before buying. When spreads are wider, use a limit order.
Gold ETF taxes, risks, and costs investors should understand
Physical-gold ETFs structured as trusts offer one way to gain precious metals exposure, but their tax treatment may differ from ordinary stock ETFs.
For U.S. individual investors, gains attributable to physical gold held for more than one year can be subject to the collectibles capital-gains rate, which is capped at 28% under current federal rules.
Certain higher-income taxpayers may also owe the 3.8% Net Investment Income Tax. Short-term gains are generally taxed at ordinary-income rates.
GLD’s tax FAQ explains its grantor-trust tax framework. Before selling, review the fund’s current documents, IRS guidance, and your own situation with a qualified tax professional.
Taxable brokerage accounts and retirement accounts can work differently. Many investors hold ETFs in retirement accounts, but account rules, custodian policies, and tax outcomes vary.
There are investment risks too. The price of gold can fall, and ETF shares may trade above or below the value of the underlying holdings. These funds do not pay regular dividends. Expenses reduce returns over time. Lower liquidity can also raise trading costs.
The bottom line
The right fund is the one that fits your holding period, trade size, account type, and comfort with the structure. Compare current fees, spreads, fund documents, and tax rules before you buy.
Gold ETFs can be a useful part of a diversified portfolio, but no fund guarantees a profit.
Next feel free to check out our guide one:
Best Gold Mining Stocks: Dividends, Growth & Value
Frequently asked questions
Are gold ETFs a good investment in 2026?
That depends on your goals, risk tolerance, time horizon, current holdings, and view of gold’s role in your portfolio. Gold can diversify a portfolio, but it can also lose value and does not generate dividends or interest.
What is the difference between a gold ETF and a gold mining ETF?
A physical gold ETF generally seeks to follow bullion prices, less fees and expenses. A mining fund, such as VanEck Gold Miners ETF, owns companies, so its performance also depends on production costs, debt, management, and broader stock-market conditions.
Which gold ETF has the lowest expense ratio?
Based on the available data, GLDM has the lowest stated expense ratio in this group at 0.10%. Confirm the current figure before investing, because fees can change and cost is only one factor beside liquidity, spreads, structure, and taxes.
Can I hold a gold ETF in an IRA?
Many brokerage platforms allow ETFs in eligible retirement accounts. Still, custodians have their own rules and fees. So, check with your provider and tax professional instead of assuming every ETF or account works the same way.
How much of a portfolio should be invested in gold?
There is no universal percentage. The right allocation depends on your financial goals, other assets, risk tolerance, and need for liquidity.
Source:: 6 Best Gold ETFs to Invest in 2026