Gold prices have reached unprecedented heights multiple times in 2025, driven by growing concerns about inflation and geopolitical tensions. Recently, gold surpassed $3,682 per ounce in mid-September, marking a remarkable increase of over 44% since the start of the year. This spike in value has prompted investors to explore gold ETFs as a strategic means of capitalizing on the bullish trend, while also mitigating risks associated with the erratic economic landscape.
In the U.S., there are thirteen gold-focused ETFs available for trading, excluding those that are leveraged, inverse funds, or have less than $50 million in assets under management (AUM). Unlike mining companies, these ETFs invest directly in gold bullion or futures contracts, thereby providing a more straightforward exposure to the precious metal.
Among the ETFs making waves in the market, several stand out due to their competitive expense ratios, performance over the past year, and liquidity.
The iShares Gold Trust Micro ETF (IAUM) distinguishes itself with an impressive one-year performance of 44.70% and the lowest expense ratio at 0.09%. Trading on the NYSE Arca, IAUM is designed as a true ETF, unlike commodity pools or grantor trusts, and strictly holds gold bullion. This offers investors a simple way to diversify their portfolios while protecting against inflation, with an asset base of $4.1 billion and a three-month average daily volume of approximately 2.6 million shares.
Another noteworthy ETF is the Franklin Responsibly Sourced Gold ETF (FGDL), which achieved a remarkable one-year performance of 45.04% and has an expense ratio of 0.15%. FGDL, which sources gold from LBMA-accredited refiners focusing on ethical practices, provides investors with confidence regarding the environmental and social impact of their investments. As of now, FGDL manages assets totaling $262.6 million, with a daily trading volume averaging around 41,800 shares.
Finally, the SPDR Gold Trust ETF (GLD) remains a key player in the gold market. Known as the most popular and oldest gold ETF in the U.S., GLD closely tracks the LBMA Gold Price, reflecting the price movements of gold bullion. This ETF has recorded a one-year performance of 44.12% with a slightly higher expense ratio of 0.40%. GLD’s substantial asset base of $114.4 billion and an average daily trading volume exceeding 10 million shares position it as a highly liquid option for traders.
For investors looking to hedge against market volatility, gold ETFs offer a practical and cost-efficient avenue for investment in the thriving gold market. This versatility in investment options comes as gold continues to experience a significant uptrend in value, attracting attention from both seasoned investors and newcomers alike.
