Through Dec. 15, 2025, the price of gold is up 62% year to date. If it's able to hold on to that gain through the end of the year, it would be the fourth-best calendar year performance going back at least 110 years. It would also be the best year since 1979, when gold prices rose 133%.
Gold has a reputation as either a defensive or inflation hedge. But 2025 has really featured neither. The S&P 500 is up more than 14% so far this year, and investors have mostly been risk seekers. Inflation is still above the Federal Reserve's target, but at 3% annualized, it's far from spinning out of control.
In reality, gold is a volatility hedge more than anything. Over the long term, the correlation between U.S. stocks and gold is near zero. That makes it a great risk diversifier in a broader portfolio. As far as how gold might perform in any year, however, is really anybody's guess!
When it comes to investing in gold exchange-traded funds (ETFs), it comes down to controlling what you can. Since all of the spot gold ETFs just invest in physical gold stored in a vault somewhere, choosing the fund with the lowest cost of ownership usually makes the most sense. That means looking at each fund's expense ratio and trading spread. Limiting fees keeps more money in your pocket, which means better total returns over the long term.
Image source: Getty Images.
Here are the three gold ETFs that I feel make the best options for investors in 2026.
SPDR Gold MiniShares Trust
The SPDR Gold Trust (GLD 1.97%) is the largest and best-known gold ETF. It's also the most expensive, with an expense ratio of 0.40% and serves as the driver behind State Street's decision to launch a cheaper sibling ETF.
The SPDR Gold MiniShares Trust (GLDM 1.94%) comes in with an expense ratio of just 0.10%, making it the second-cheapest fund of this group. With more than $25 billion in assets under management, GLDM shares are also highly tradable and have razor-thin trading spreads. This ultralow-cost fee structure makes it the go-to option for a physical gold ETF.
NYSEMKT: GLDM
Key Data Points
iShares Gold Trust Micro
Almost everything that was said above could apply to the iShares gold ETFs. The iShares Gold Trust (IAU 1.95%) is the second-largest gold ETF, and while it isn't quite as pricey as GLD, its 0.25% expense ratio is still higher than most of its competition.
The iShares Gold Trust Micro (IAUM 1.93%) invests in physical gold but charges 0.09%. That makes it the winner in the gold ETF fee war and the cheapest for investors to own. It's not nearly as large as the other gold ETFs mentioned so far, but with roughly $6 billion in assets, size and tradability aren't concerns.
NYSEMKT: IAUM
Key Data Points
One of the underappreciated aspects of the "mini shares" versions of these gold ETFs is their share prices. Because they're priced so much lower than their larger siblings, they're easier to trade for investors with less available capital.
abrdn Physical Gold Shares ETF
The abrdn Physical Gold Shares ETF (SGOL 1.94%) comes with a slightly higher expense ratio of 0.17%, but one of its distinguishing features is that it has a bit of an ESG twist to it. (ESG is the acronym for environmental, social, and governance factors that influence investing decisions.)
According to the fund's website:
All post-2012 gold has been refined in accordance with the London Bullion Market Association's ("LBMA") Responsible Gold Guidance (the "Gold Guidance"), which requires refiners to demonstrate their efforts to respect the environment and combat money laundering, terrorist financing and human rights abuses.
If ESG issues are important to you, SGOL might be worth consideration despite the slightly higher cost.
NYSEMKT: SGOL
Key Data Points
In the end, physical gold ETFs are largely the same (save for some very minor differences). Choosing lower-cost options can be a good way to maximize your returns in this space.
