Gold exchange-traded funds (ETFs) are experiencing strong demand from investors as geopolitical tensions rise and gold prices climb. A report from ICRA Analytics revealed that inflows into gold ETFs surged by 98.54% year-on-year, reaching ₹1,979.84 crore in February 2025, compared to ₹997.21 crore during the same period last year.
The net assets under management (AUM) for gold ETFs nearly doubled, increasing from ₹28,529.88 crore in February 2024 to ₹55,677.24 crore in February 2025.
Here are the best-performing gold ETFs based on their returns:
| Gold ETFs | 1-Year (%) | 5-Year (%) |
| ICICI Prudential Gold ETF | 29.85 | 14.04 |
| HDFC Gold Exchange Traded Fund | 29.53 | 14.50 |
| SBI Gold ETF | 29.46 | 13.60 |
| Kotak Gold ETF | 29.45 | 13.76 |
| Nippon India ETF Gold BeES | 29.06 | 14.35 |
Gold ETFs are becoming increasingly popular due to their liquidity, transparency, and cost-effectiveness. Unlike physical gold, they remove concerns related to storage, purity, and theft. ICRA Analytics noted, “With gold historically considered a safe-haven asset, many investors are turning to ETFs during times of economic and geopolitical uncertainty.”
Experts recommend including gold in a diversified portfolio, especially during uncertain times. Although gold prices have risen, investors are advised to evaluate their financial goals and risk tolerance before making investments. Gold ETFs offer an easy way to gain exposure to gold without the complexities of physical ownership.
However, it’s essential for investors to stay informed about market conditions and consult financial advisors before making investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 4, 2025, 8:51 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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