Top 5 Gold ETFs to Buy in 2025: Expert Picks for Maximum Returns

With gold delivering over 50% returns in 2025 and trading above $4,000 per ounce, choosing the right gold ETF has never been more crucial. This comprehensive guide examines the top gold ETFs based on performance, fees, liquidity, and unique features to help you make informed investment decisions.

SPDR Gold Shares (GLD): The Industry Giant

SPDR Gold Shares remains the world’s largest and most liquid gold ETF, with over $130 billion in assets under management. Launched in 2004, GLD has established itself as the go-to choice for investors seeking direct gold exposure with maximum liquidity. Each share represents approximately one-tenth of an ounce of physical gold stored in secure vaults.

Performance and Costs

GLD has delivered approximately 66% returns year-to-date in 2025, closely tracking spot gold prices. The fund charges an expense ratio of 0.40%, which is higher than newer competitors but justified by its exceptional liquidity. Daily trading volume exceeds millions of shares, ensuring you can enter and exit positions at fair prices without significant slippage.

Who Should Invest in GLD

GLD suits investors prioritizing liquidity and seeking to trade large positions. Institutional investors and active traders favor GLD due to its tight bid-ask spreads and deep order books. If you plan to make frequent adjustments to your gold holdings or invest substantial amounts, GLD’s premium liquidity justifies its higher expense ratio.

iShares Gold Trust Micro (IAUM): The Low-Cost Leader

iShares Gold Trust Micro revolutionizes gold ETF investing with the industry’s lowest expense ratio at just 0.09%. Launched by BlackRock, IAUM provides the same gold exposure as larger competitors while saving investors significant money on fees. Over time, these fee savings compound, potentially adding thousands of dollars to your investment returns.

Cost Advantage Analysis

The difference between IAUM’s 0.09% expense ratio and GLD’s 0.40% might seem small, but it compounds significantly over time. On a $10,000 investment held for 10 years, IAUM saves approximately $3,100 in fees compared to GLD, assuming no price changes. For long-term buy-and-hold investors, IAUM represents the most cost-effective gold ETF available.

Ideal Investor Profile

IAUM perfectly suits cost-conscious long-term investors who prioritize fee minimization over maximum liquidity. If you plan to hold gold as a portfolio hedge for years rather than actively trading, IAUM’s fee advantage outweighs any minor liquidity differences compared to larger funds.

VanEck Merk Gold Trust (OUNZ): The Redemption Option

VanEck Merk Gold Trust offers a unique feature unavailable in most gold ETFs: the ability to redeem shares for physical gold. With $2.3 billion in assets and a 0.25% expense ratio, OUNZ bridges the gap between gold ETFs and physical ownership. This flexibility appeals to investors who want ETF convenience but desire the option to take physical delivery.

Physical Redemption Benefits

Unlike traditional gold ETFs where you can only sell shares for cash, OUNZ allows qualified investors to exchange shares for gold bars or coins. This feature provides insurance against extreme scenarios where investors might want physical gold possession. Even if you never redeem, knowing the option exists provides psychological comfort.

Best Use Cases

OUNZ suits investors who want ETF liquidity and convenience but value the security of potential physical conversion. If you’re concerned about financial system stability or simply want the flexibility to own physical gold without committing immediately, OUNZ offers the best of both worlds.

iShares MSCI Global Gold Miners ETF (RING): The Leveraged Play

iShares MSCI Global Gold Miners ETF takes a different approach by investing in gold mining companies rather than physical gold. With $2.3 billion in assets and a 0.39% expense ratio, RING provides amplified exposure to gold price movements. Mining stocks typically rise faster than gold prices during bull markets but also fall harder during downturns.

Understanding the Mining Stock Advantage

Gold mining companies benefit from operational leverage. When gold prices rise, mining profits increase dramatically because production costs remain relatively fixed. This operating leverage means mining stocks often outperform physical gold during price rallies. In 2025, mining stocks have surged over 50%, closely matching physical gold’s gains while offering dividend income.

Risk and Reward Profile

RING carries higher risk than physical gold ETFs because mining company values depend on multiple factors beyond gold prices. Operational challenges, management decisions, political risks, and production costs all affect mining stock performance. However, for investors comfortable with additional volatility in exchange for potential outperformance and dividend income, RING offers compelling opportunities.

Franklin Responsibly Sourced Gold ETF (FGDL): The Sustainable Choice

Franklin Responsibly Sourced Gold ETF leads the emerging trend toward environmentally and socially responsible gold investing. FGDL invests exclusively in gold sourced from mines meeting strict environmental, social, and governance (ESG) criteria. This focus appeals to investors who want gold exposure aligned with sustainability values.

ESG Standards and Verification

FGDL’s gold comes from mines certified by the Responsible Gold Mining Principles or similar recognized standards. These certifications ensure mining operations minimize environmental impact, respect local communities, and maintain transparent governance. While these standards don’t affect gold’s physical properties, they address growing investor concerns about ethical sourcing.

Performance with Principles

FGDL has delivered strong returns in 2025, demonstrating that responsible investing doesn’t require performance sacrifices. The fund charges a slightly higher expense ratio to cover ESG verification costs, but many investors consider this worthwhile for peace of mind about their investment’s social impact.

Making Your Gold ETF Selection

Choosing among these excellent gold ETFs depends on your priorities. For maximum liquidity and institutional-grade trading, select GLD. If minimizing costs for long-term holdings matters most, choose IAUM. For physical redemption flexibility, pick OUNZ. Seeking amplified returns with dividend income suggests RING. And for ESG-conscious investing, select FGDL. Many sophisticated investors hold multiple gold ETFs to balance different objectives within their gold allocation.