Ready to Ride the Gold Rally? Check Out the Top 3 Gold ETFs to Bet On!

The yellow metal has captured widespread attention, surging approximately 9% since the beginning of the year and reaching new highs. This remarkable ascent can be attributed to investors flocking to gold as a hedge against inflation and escalating geopolitical uncertainties. Moreover, anticipation of a decline in US interest rates has fueled optimism about gold, as it suggests a potential weakening of the dollar, prompting further interest in the precious metal.

Investing in gold not only offers a reliable hedge against inflation but also presents itself as an outperforming asset compared to other investment avenues amid geopolitical uncertainties. Here, we delve into the top 3 gold ETFs that have consistently delivered solid returns:

1. Kotak Gold ETF:

With a Net Asset Value (NAV) of 58.88, the Kotak Gold ETF has exhibited consistent performance across various time frames. Sporting a 1-year return of 15.39%, it showcases equity-like performance in the short term. Over longer periods, it has demonstrated stability with returns of 15.20% over 3 years, 16.22% over 5 years, and 8.54% over 10 years. Since its inception, it has returned an impressive 12.06%. The fund boasts a substantial daily Average Underlying Market (AUM) of 3,900.20 crores, underscoring investor confidence and a robust asset base.

2. UTI Gold ETF:

The UTI Gold ETF shares similar characteristics with the Kotak Gold ETF, albeit with a slightly higher NAV of 59.30. Its returns closely mirror those of its counterpart, with competitive 1-year returns at 15.75% and consistent performance over 3 years (14.80%), 5 years (16.12%), and 10 years (8.57%). Since inception, it has returned 11.39%, showcasing reliability and stability. Despite a marginally lower AUM of 1,076.47 crores compared to Kotak, the UTI Gold ETF remains a strong contender in the gold ETF landscape.

3. Nippon India ETF Gold BeES:

As the oldest player in the segment, the Nippon India ETF Gold BeES offers investors another solid option in the gold ETF space, with an NAV of 58.60. Its returns are on par with its peers, boasting 1-year returns at 15.20% and consistent performance over 3 years (14.38%), 5 years (15.93%), and 10 years (8.52%). Since inception, it has returned 11.27%, reflecting reliability and long-term sustainability. Notably, it boasts the highest daily AUM among the listed ETFs, standing at an impressive 10,051.54 crores, indicating substantial investor interest and confidence in the fund.

These top-tier gold ETFs provide investors with a diversified and efficient means to capitalize on the gold rally while mitigating risks associated with individual gold investments. Whether seeking short-term gains or long-term stability, these ETFs offer a compelling avenue to participate in the gold market’s growth trajectory.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.