Which gold ETF has performed best over 1 year?
World Gold Council data shows Australia has invested $356 million into gold ETFs since the start of 2025, but which ETF is seeing the best performance?
Total assets under management invested by Australian investors in gold ETFs stand at US$4.9 billion ($7.5 billion) and year-to-date inflows stand at $356.4 million. However, they pulled $9.8 million from the funds during May which ended an inflow streak held since November 2024.
Research by Fidante found advisers are keen to increase the defensiveness in their portfolios, including greater allocations to cash and fixed income
According to FE fundinfo’s investment centre, the best performing gold ETF over one year to 10 June within the Australian Core Strategies universe is VanEck Gold Miners ETF which returned 50.6 per cent.
The $806 million ETF invests in a diversified range of companies involved in the gold mining industry which are linked to the price of gold bullion. Some 43 per cent of its exposure comes from Canada followed by 16 per cent in the US.
This is followed by Betashares Global Gold Miners Currency Hedged ETF which returned 49.9 per cent. This ETF aims to track the performance of an index that comprises the largest gold mining companies (ex Australia) hedged into Australian dollars.
Top five gold ETFs over one year
|
ETF |
One-year performance as of 10 June |
|
VanEck Gold Miners ETF |
50.6% |
|
Betashares Global Gold Miners Currency Hedged ETF |
49.9% |
|
iShares Physical Gold ETF |
44.9% |
|
VanEck Vectors Gold Bullion ETF |
44.9% |
|
Global X Physical Gold |
44.6% |
Source: FE fundinfo, 10 June 2025
Both ETFs noted the defensive benefits of investing in this asset class as the price of gold has trended to perform well during times of market uncertainty.
Commentary from the World Gold Council added: “Prior research shows that stagflation is an environment that particularly favours gold. The theory behind that is quite simple because bonds suffer because inflation is higher, cyclical commodities suffer because growth is lower, and equities suffer because margins contract as sales fall while costs rise.
“Historically it hasn’t always played out like this but, on average, stagflationary episodes have been quite good for gold relative to stocks, cyclical commodities and bonds. But we don’t necessarily have to wait for such an environment to play out.”
Source: https://www.moneymanagement.com.au/