As gold continues to scale new heights, with prices crossing ₹1,23,000 per 10 grams of 24K gold in Delhi on 6 October 2025, investors are flocking to various gold-backed assets to boost their wealth ahead of Diwali.
One such lucrative option is the Gold Exchange-Traded Fund, also known as a gold ETF. These ETFs provide investors with exposure to gold without the hassle of managing the investments themselves or the inconvenience of physical ownership.
Currently, the yellow metal is on a stellar run, as both global central banks and retail investors are flocking to the asset to combat global uncertainties and expectations of upcoming Federal Reserve rate cuts following a 25-basis-point reduction in September 2025.
Why Gold ETFs are favoured this festive season
Gold ETFs offer investors a convenient, transparent and cost-effective way to invest in gold. They combine the benefits of gold’s traditional appeal as a hedge against inflation and currency fluctuations with the liquidity of stock market trading. Investors can buy or sell these units on the stock exchange like shares, starting with even a small investment.
Top 5 Gold ETFs to consider in 2025
Five prominent gold ETFs that aspiring investors can look forward to are discussed below in the table, along with their asset under management (AUMs) and annual returns:
Note: The Asset Under Management (AUM), along with the returns discussed above, is illustrative in nature. For the most recent and updated details on returns and AUM, refer to the official website of the respective ETF issuing financial institution.
- These Gold ETFs have delivered solid returns of over 50% over the last year. This is a clear reflection of gold’s strong performance amid market volatility and geopolitical turmoil, driven by factors such as the Russia-Ukraine war and Trump’s tariffs, among others.
- Even over a 3-year and 5-year period, the returns have been exceptional. Most of the above-discussed Gold ETFs have even eclipsed the returns of the Nifty 50 benchmark index, which has given a return of 110.49% over the last five years and has remained flat for the last 12 months. This makes these ETFs particularly attractive for wealth preservation and growth.
- The ease associated with investing, trading and holding these assets. Along with the expense ratio compared to physical gold and the absence of concerns regarding purity or making charges, this further boosts their investment appeal.
What are the tax implications of Gold ETFs?
Gold ETFs provide investors with clarity on tax payments. Long-term gains are taxed at 12.5% without indexation. Long-term gains refer to the gains realised when ETFs are held for more than 12 months. whereas short-term gains are taxed according to an individual’s income slab.
In conclusion, as Diwali approaches, these Gold ETFs can offer investors practical and efficient ways to capitalise on the ongoing gold bull market. This way, investors can combine traditional gold investment ideas with modern investment convenience.
Still, before investing in any particular asset class, it is always prudent to sit down with a certified financial advisor and plan your investments in accordance with your current financial capacity and long-term financial goals.
Disclaimer: The data and returns mentioned are for illustrative purposes and are subject to market fluctuations. This article is for informational purposes only and does not constitute financial advice. Investors should consult a certified financial advisor before making any investment decisions.
