Gold prices have gained over 14% in the past year amid investors turning to the precious metal for a hedge against inflation and rising geopolitical risks.1 The yellow metal has also benefited from a lackluster U.S. dollar in recent months as investors dial back the Federal Reserve’s interest rate expectations. Typically, the price of gold and the U.S. dollar have an inverse correlation because demand for the precious metal fluctuates depending on the strength of the dollar.

Instead of physically holding the bullion, investors can gain cost-effective exposure to the metal by holding gold exchange-traded funds (ETFs). Below, we review the top gold ETFs that have generated the best returns over the past year. We exclude inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). All data below is as of Dec. 14.

KEY TAKEAWAYS

  • Top gold ETFs provide cost-effective exposure to gold prices without having to physically hold the precious metal.
  • IAUM has an AUM of over $1.2 billion and has returned 12% over the past twelve months.
  • GLDM has a one-year return of 12% and holds $6 billion in net assets.
  • AAAU has over $607 million in net assets and returned 12% over the last year.

iShares Gold Trust Micro (IAUM)

  • Performance Over One-Year: 12%
  • Expense Ratio: 0.09%
  • Annual Dividend Yield: N/A
  • Three-Month Average Daily Volume: 344,794
  • Assets Under Management: $1.2 billion
  • Inception Date: June 15, 2021
  • Issuer: Blackrock Financial Management12

The ETF aims to track the spot gold price by holding physical gold bullion. IAUM suits investors seeking a hedge against inflation and to diversify their portfolio. The fund’s low expense ratio also suits traders wanting to speculate on gold’s day-to-day price fluctuations. IAUM shares trade at 1/100th of the spot price for gold, making the fund ideal for investors who want to trade small order sizes.