Gold exchange-traded funds (ETFs) have become popular among investors seeking exposure to gold prices without the need to hold physical gold. As of September 2026, gold ETFs saw a surge in inflows, reflecting growing investor interest. But which gold ETFs delivered the best returns over the last three and five years? This article answers that question using data from ACE MF as of October 13, 2026.
- Gold ETFs attracted ₹4,451 crore in inflows in September 2026, up from ₹2,597 crore in August.
- UTI Gold ETF recorded the highest three-year return at 35.43%.
- LIC MF Gold ETF led five-year returns with 24.69%.
- Short-term returns were negative in recent weeks, showing market fluctuations.
- Performance differences among top gold ETFs over five years are narrow.
What are Gold ETFs and why do investors choose them?
Gold ETFs are investment funds traded on stock exchanges that track the price of domestic gold. They allow investors to gain exposure to gold without physically storing it. Investors often choose gold ETFs to diversify their portfolios and hedge against inflation or market volatility. However, like all investments, gold ETFs can experience price fluctuations, and past returns do not guarantee future results.
How much did investors put into Gold ETFs in September 2026?
According to the Association of Mutual Funds in India (AMFI) data released on October 12, 2026, gold ETFs attracted net inflows of ₹4,451 crore in September. This was a significant increase from ₹2,597 crore in August. Silver ETFs also saw net inflows of ₹1,974 crore during the same period, indicating growing interest in precious-metal funds.
Which Gold ETFs delivered the highest returns over three years?
Data from ACE MF shows that over the past three years, UTI Gold ETF delivered the highest return at 35.43%. It was closely followed by LIC MF Gold ETF at 35.32% and Invesco India Gold ETF at 35.08%. Other notable performers include ICICI Prudential Gold ETF and Axis Gold ETF, both at 34.95%, and HDFC Gold ETF at 34.87%. These figures highlight the strong performance of gold ETFs over the medium term.
Which Gold ETFs performed best over five years?
Over a five-year period, LIC MF Gold ETF led with a return of 24.69%, followed by UTI Gold ETF at 24.48% and Invesco India Gold ETF at 24.38%. Axis Gold ETF and ICICI Prudential Gold ETF also performed well, with returns around 24.3% to 24.37%. The returns of other funds such as Kotak Gold ETF, HDFC Gold ETF, SBI Gold ETF, and Nippon India ETF Gold BeES ranged narrowly between 24.09% and 24.29%. This suggests that long-term performance among these gold ETFs has been broadly similar.
Have Gold ETFs experienced recent price fluctuations?
Despite positive long-term returns, gold ETFs have seen some short-term weakness. ACE MF data as of October 13, 2026, shows that one-month returns for the analyzed schemes were negative, ranging from -2.90% for ICICI Prudential Gold ETF to -2.93% for Nippon India ETF Gold BeES. This short-term dip illustrates the price volatility investors may face even when funds have performed well over longer periods.
What should investors consider before investing in Gold ETFs?
Investors should remember that this data is for informational purposes only and does not constitute a recommendation. Investment decisions should be based on individual financial goals and risk tolerance. While gold ETFs offer a convenient way to invest in gold, their prices can fluctuate, and past performance is not a guarantee of future results.
Frequently Asked Questions
Q: What makes gold ETFs different from buying physical gold?
A: Gold ETFs allow investors to buy gold exposure through the stock market without the need to store or insure physical gold. They are more liquid and easier to trade than physical gold.
Q: Why did gold ETFs see increased inflows in September 2026?
A: Increased inflows may be due to investors seeking safe-haven assets amid market uncertainty or inflation concerns, boosting demand for precious-metal funds.
Q: Are the returns of all gold ETFs similar?
A: Over the long term, returns among top gold ETFs are quite similar, but short-term performance can vary due to market fluctuations and fund management.
Q: Should I rely solely on past returns to choose a gold ETF?
A: No. Past returns provide insight but do not guarantee future performance. Consider your financial goals, risk appetite, and other factors before investing.
