Gold has always been an important investment option for Indian investors. Traditionally, people invested in physical gold through jewellery, coins and bars. However, with the growth of the stock market, Gold Exchange Traded Funds (ETFs) have become a convenient way to invest in gold without worrying about storage, purity or security.
Currently, there are multiple Gold ETFs listed on the Indian stock market. But choosing the right ETF can be challenging because investors need to consider several factors, including historical returns, expense ratio, liquidity, Assets Under Management (AUM) and pledge benefits.
To make this selection easier, we analysed 25 Gold ETFs listed in the Indian stock market and shortlisted four ETFs based on four key parameters:
- Pledge Benefit
- 1-Year Return
- Expense Ratio
- Total AUM
Let’s explore the top four Gold ETFs and understand how they compare.
Top 4 Gold ETFs in India – 2026
The following four Gold ETFs have been selected from our analysis of 25 listed Gold ETFs.
| Gold ETF | Pledge Benefit | 1-Year Return | Expense Ratio | AUM |
|---|---|---|---|---|
| Tata Gold ETF | 89.93% | 15.98% | 0.39% | ₹5,794.50 Cr |
| Mirae Asset Gold ETF | 90.52% | 15.82% | 0.35% | ₹3,302.40 Cr |
| ICICI Prudential Gold ETF | 89.53% | 15.81% | 0.49% | ₹26,303.20 Cr |
| Zerodha Gold ETF | 90.01% | 15.78% | 0.35% | ₹2,441.00 Cr |
Note: The figures are based on the data provided for this comparison. Returns and AUM change over time. Verify the latest figures before making an investment decision.
1. Tata Gold ETF
Tata Gold ETF ranks first in this selection based on its 1-year historical return of 15.98%.
With an expense ratio of 0.39% and AUM of ₹5,794.50 crore, it offers a combination of competitive historical performance and a relatively established fund size.
Key Highlights:
- Pledge Benefit: 89.93%
- 1-Year Return: 15.98%
- Expense Ratio: 0.39%
- Total AUM: ₹5,794.50 crore
Why consider Tata Gold ETF?
Tata Gold ETF recorded the highest 1-year return among the four shortlisted ETFs. Its AUM also indicates a meaningful presence in the Gold ETF segment.
Investors looking for an ETF with strong historical performance may consider including it in their research.
2. Mirae Asset Gold ETF
Mirae Asset Gold ETF offers the highest pledge benefit among the four selected ETFs, at 90.52%.
It also has a relatively low expense ratio of 0.35%, making it an interesting option for investors who want to consider both collateral value and fund expenses.
Key Highlights:
- Pledge Benefit: 90.52%
- 1-Year Return: 15.82%
- Expense Ratio: 0.35%
- Total AUM: ₹3,302.40 crore
Why consider Mirae Asset Gold ETF?
Its combination of the highest pledge benefit and a competitive expense ratio makes it worth considering, particularly for investors who may want to pledge their ETF holdings as collateral for trading or margin purposes.
However, investors should also check its trading volume and bid-ask spread before investing.
3. ICICI Prudential Gold ETF
ICICI Prudential Gold ETF stands out because of its significantly larger AUM compared with the other three ETFs.
With total assets of ₹26,303.20 crore, it has the largest fund size in this comparison.
Key Highlights:
- Pledge Benefit: 89.53%
- 1-Year Return: 15.81%
- Expense Ratio: 0.49%
- Total AUM: ₹26,303.20 crore
Why consider ICICI Prudential Gold ETF?
Its large AUM indicates a substantial investor base and established market presence.
Although its expense ratio of 0.49% is the highest among the four selected ETFs, investors who prioritise fund size and established market presence may want to evaluate it further.
Remember that higher AUM does not automatically guarantee better liquidity or higher returns.
4. Zerodha Gold ETF
Zerodha Gold ETF offers a combination of a competitive expense ratio and a high pledge benefit.
Its expense ratio of 0.35% is among the lowest in this comparison, while its pledge benefit stands at 90.01%.
Key Highlights:
- Pledge Benefit: 90.01%
- 1-Year Return: 15.78%
- Expense Ratio: 0.35%
- Total AUM: ₹2,441.00 crore
Why consider Zerodha Gold ETF?
Zerodha Gold ETF may attract cost-conscious investors because of its relatively low expense ratio.
Its pledge benefit is also competitive, making it worth examining for investors who intend to use their ETF holdings as collateral.
However, its AUM is the smallest among the four selected ETFs, so checking trading liquidity becomes particularly important.
Comparison: Which Gold ETF Leads in Each Category?
Let’s identify the leading ETF across each of our four selection parameters.
| Parameter | Leading ETF | Value |
|---|---|---|
| Highest 1-Year Return | Tata Gold ETF | 15.98% |
| Highest Pledge Benefit | Mirae Asset Gold ETF | 90.52% |
| Lowest Expense Ratio | Mirae Asset & Zerodha | 0.35% |
| Highest AUM | ICICI Prudential Gold ETF | ₹26,303.20 Cr |
Each ETF has a different strength. Therefore, there is no single winner across all four parameters.
Why These Four Parameters Matter When Selecting a Gold ETF
1. Pledge Benefit
Pledge benefit refers to the collateral value that an investor may receive when pledging ETF units with a broker.
For example, if the pledge benefit is 90%, ETF units worth ₹1,00,000 may provide approximately ₹90,000 in collateral value before applicable charges and other adjustments.
The actual value depends on broker policies, exchange regulations, applicable haircuts and eligibility requirements.
2. 1-Year Return
The 1-year return helps investors understand how an ETF has performed over the previous year.
However, past performance does not guarantee future returns. Gold prices can fluctuate due to global economic conditions, currency movements, interest rates and geopolitical developments.
3. Expense Ratio
The expense ratio represents the annual fund management and operating expenses charged by the ETF.
A lower expense ratio can help reduce the long-term cost of holding an ETF, assuming other factors remain comparable.
For example, a 0.35% expense ratio means approximately ₹350 in annual fund expenses per ₹1,00,000 invested, before considering changes in investment value.
4. Total AUM
AUM represents the total value of assets managed by the ETF.
A larger AUM can indicate greater investor participation and an established fund presence. However, AUM alone does not determine trading liquidity.
Investors should also examine daily trading volume, bid-ask spreads and tracking error.
Final Verdict: Which Gold ETF Should You Consider?
Based on the four parameters analysed, each shortlisted ETF has a distinct advantage:
- Tata Gold ETF: Leads in 1-year historical returns.
- Mirae Asset Gold ETF: Leads in pledge benefit and shares the lowest expense ratio.
- ICICI Prudential Gold ETF: Has the largest AUM among the selected ETFs.
- Zerodha Gold ETF: Combines a competitive pledge benefit with a low expense ratio.
If your priority is historical returns, Tata Gold ETF stands out. If you prioritise pledge benefits and lower expenses, Mirae Asset Gold ETF deserves attention. If fund size is your main consideration, ICICI Prudential Gold ETF leads this comparison. Zerodha Gold ETF is another option worth evaluating for its relatively low costs.
Important: This comparison is intended for educational purposes and is not investment advice. Before investing, check the latest expense ratio, tracking error, liquidity, trading volume, market price versus NAV and broker-specific pledge eligibility.
The best Gold ETF is not necessarily the one with the highest return or largest AUM. It is the one that best matches your investment objectives, holding period and cost considerations.
Disclaimer
Data Disclaimer
The information and data presented in this article, including 1-year returns, expense ratios, Assets Under Management (AUM), and pledge benefits, are based on the data available at the time of preparation. Market data, fund performance, AUM, expense ratios, and pledge eligibility may change over time. Readers are advised to verify the latest information from the respective AMC websites, stock exchanges, and brokers before making any decisions.
Investment Disclaimer
This article is intended solely for educational and informational purposes and should not be considered investment advice, a recommendation, or an offer to buy or sell any securities. Investments in Gold ETFs are subject to market risks, including fluctuations in gold prices, currency movements, and tracking errors. Past performance does not guarantee future returns.
Investors should conduct their own research and consult a SEBI-registered investment adviser before making investment decisions based on their financial goals, risk appetite, and investment horizon.
The author and publisher shall not be responsible for any financial losses arising from investment decisions made based on the information presented in this article.
Important: The selection of the top 4 Gold ETFs from 25 listed ETFs is based on the comparison parameters mentioned in this article and does not represent an official ranking or endorsement.
