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Best Gold & Commodities ETFs

Published by Radif Partners · Updated

Beginner

Compare ETFs tracking gold, precious metals and commodity indices. Traditional safe havens and inflation hedges for portfolio diversification.

This guide reviews 23 Gold & Commodities ETFs funds available in Europe. They track 17 different indices, which is the first thing to check: two funds filed under the same theme do not necessarily hold the same securities, and a one-year performance gap is often explained by that rather than by how the fund is run. Their ongoing charges start at 0.09% for an average of 0.34%, and 7 of them pay their dividends out while the rest reinvest them. 11 are domiciled in US, which sets the withholding tax the fund suffers on the dividends it receives. The oldest, XLB, launched in 1998, giving 28 years of history, enough to see how it behaved in a fall. The order on this page does not follow past performance: over the horizons published it says more about the index tracked than about how the fund is run, and it does not repeat. What counts are the fees, the assets and the tracking quality, the figures that are known in advance.

Updated 2025-05

Written by Radif PartnersÉditeur de calculateurs et de guides pratiques

Gold has been considered the ultimate safe-haven asset for millennia. During periods of economic uncertainty, geopolitical tensions or high inflation, the price of gold tends to rise while equity markets fall, making it an excellent diversification tool for any investment portfolio.

ETCs (Exchange-Traded Commodities) and ETFs backed by gold provide exposure to the gold price without physically owning bullion. Most products are backed by physical gold stored in secure vaults (London, Zurich), meaning each share corresponds to an actual quantity of precious metal. Other products track broader commodity indices including energy, industrial metals and agricultural products.

This category is particularly relevant in 2025, with gold reaching new all-time highs driven by central bank purchases, geopolitical uncertainty and expectations of rate cuts. This comparison ranks the leading ETCs and gold/commodity ETFs available in Europe to help you make the right choice.

Avg. TER

0.34%

Avg. 1Y Perf

+18.1%

Total AUM

387.1B

ETFs available

23

GLD, LBMA Gold Price

SPDR Gold Shares

View details→
+118.8%
30022715481Jul 21Jul 22Jul 23Jul 24Jul 25Jul 26

Simulated from available data points. Past returns do not guarantee future results.

How to choose a gold or commodity ETF

For physical gold, the product structure is the main criterion. Physically-backed ETCs (like Invesco Physical Gold, iShares Physical Gold or Amundi Physical Gold) actually hold gold bars in vaults. They offer the best replication of the gold price with very competitive fees (TER of 0.12% to 0.25%). Avoid synthetic gold products, which add unnecessary counterparty risk.

An important nuance: technically, most gold products in Europe are ETCs (debt notes backed by a physical asset) rather than ETFs in the UCITS sense, because a UCITS ETF cannot hold a single physical asset. In practice, the difference is minimal for investors, gold ETCs trade exactly like ETFs on the same exchanges.

For broader commodity exposure, ETFs tracking the Bloomberg Commodity Index offer diversification across energy (oil, gas), metals (gold, copper, aluminium) and agriculture. Watch out for contango, which can erode the performance of futures-based commodity ETFs, unlike physically-backed ETCs.

Full Comparison

#NameTERAUMReplicationDistribution1Y3Y5Y 
1GLDSPDR

LBMA Gold Price

0.40%141.7Bphysicalaccumulating+1.2%+27.7%+17.9%
2IAUiShares

LBMA Gold Price

0.25%62.2Bphysicalaccumulating+1.3%+27.9%+18.1%
3GLDMSPDR

LBMA Gold Price

0.10%30.7Bphysicalaccumulating+1.5%+28.1%+18.2%
4SLViShares

LBMA Silver Price

0.50%30.0Bphysicalaccumulating+17.1%+34.0%+18.0%
5GDXVanEck

NYSE Arca Gold Miners

0.51%26.3Bphysicaldistributing+20.5%+43.8%+21.6%
6SGLDInvesco

LBMA Gold Price

0.12%20.0Bphysicalaccumulating+1.3%+27.9%+18.1%
7PHAUWisdomTree

LBMA Gold Price

0.39%18.0Bphysicalaccumulating+1.1%+27.6%+17.9%
8IGLNiShares

LBMA Gold Price

0.12%17.0Bphysicalaccumulating+1.4%+28.0%+18.2%
9GDXJVanEck

MVIS Global Junior Gold Miners

0.52%8.4Bphysicaldistributing+15.8%+46.9%+19.9%
10XLBSPDR

Materials Select Sector

0.09%7.8Bphysicaldistributing+14.4%+10.6%+3.7%
11SGLAabrdn

LBMA Gold Price PM

0.17%5.0Bphysicalaccumulating–––
12VAWVanguard

MSCI US Investable Market Materials 25/50

0.10%4.5Bphysicaldistributing+10.9%+11.1%+3.9%
13XMESPDR

S&P Metals & Mining Select Industry

0.35%4.1Bphysicaldistributing+1.1%+27.3%+17.8%
14PHAGWisdomTree

LBMA Silver Price

0.49%3.5Bphysicalaccumulating+19.3%+35.7%+18.1%
15XDBGXtrackers

Bloomberg Commodity

0.19%2.1Bsyntheticaccumulating–––
16USOUS Commodity Funds

WTI Crude Oil Futures

0.60%1.7Bsyntheticdistributing+121.0%+26.1%+22.8%
17COPAWisdomTree

Bloomberg Commodity Total Return

0.49%1.5Bsyntheticaccumulating+24.1%+19.8%+7.1%
18PHPTWisdomTree

LBMA Platinum Price

0.49%800Mphysicalaccumulating–––
19XDWMXtrackers

MSCI World Materials

0.25%798Mphysicalaccumulating+23.0%+13.7%+8.2%
20BCOML&G

Barclays Backwardation Tilt Multi-Strategy Capped TR

0.30%505Msyntheticaccumulating+39.2%+15.8%+10.9%
21UNGUS Commodity Funds

Henry Hub Natural Gas Futures

1.06%458Msyntheticdistributing-17.8%-26.8%-32.0%
22XEXAXtrackers

Bloomberg ex-Agriculture and Livestock 15/30 Capped 3 Month Forward

0.21%93Msyntheticaccumulating+39.4%––
23RICIiShares

Bloomberg Commodity (Total Return)

0.19%63Msyntheticaccumulating+26.6%+11.2%+12.7%

Key takeaways

  • 1The cheapest physical gold ETCs have a TER of 0.12%, making them a very low-cost hedge against uncertainty.
  • 2Gold generates no dividends or interest, its performance depends entirely on price appreciation.
  • 3A 5-10% gold allocation in a diversified portfolio has historically improved the overall risk-adjusted return.
  • 4Gold ETCs are generally not PEA-eligible, they sit in a standard brokerage account (CTO) or life insurance wrapper.
  • 5Gold is priced in US dollars: euro-based investors face a currency effect that can amplify or reduce returns.
  • 6Broad commodity ETFs (Bloomberg Commodity, etc.) offer additional diversification but often suffer from contango on futures contracts.

Frequently asked questions

What's the difference between a gold ETC and a gold ETF?
In Europe, physical gold products are structured as ETCs (Exchange-Traded Commodities) rather than ETFs, because UCITS regulations prohibit ETFs from holding a single asset. An ETC is a debt note backed by physical gold stored in vaults. In practice, the difference is minimal: ETCs trade like ETFs, with the same hours, the same liquidity and similar fees.
Does gold really protect against inflation?
Over the very long term (several decades), gold has broadly preserved its purchasing power. However, the relationship with inflation isn't perfect over shorter horizons. In 2022, for example, inflation surged but gold remained relatively flat. Gold reacts more to real interest rates (nominal rates minus inflation) and crises of confidence. It remains an excellent portfolio diversifier but shouldn't be seen as a perfect inflation hedge.
How much of my portfolio should I allocate to gold?
Most strategic allocations recommend between 5% and 10% of the portfolio in gold or commodities. This proportion is enough to bring meaningful decorrelation without penalising long-term returns too much (gold isn't meant to be the portfolio's performance engine). Above 15%, gold exposure starts to weigh on expected returns because it generates no income.
What’s the difference between a gold ETF and a physical gold ETC?
A physical gold ETC (Exchange Traded Commodity) is backed by gold stored in vaults, with a theoretical right to delivery. A synthetic gold ETF uses derivatives. Physical ETCs eliminate counterparty risk but cost slightly more. Over a ten-year horizon the ongoing charge weighs more than any difference in past performance: 0.20% against 0.50% on €10,000 is about €300, compounded.
Is gold a good inflation hedge?
Over very long periods (50+ years), gold has maintained its purchasing power. However, over shorter horizons (1–5 years), it is not a reliable inflation hedge. It primarily protects against systemic crises and currency devaluation. Check the figure in the key information document of the exact share class your broker offers, since two classes of the same fund can differ on charges and on distribution policy.
What percentage of gold should I hold in a portfolio?
Most strategic allocations recommend 5–10% gold in a diversified portfolio. Beyond 10%, the opportunity cost becomes significant as gold produces no yield (no dividends, no interest). What matters more than the ranking is whether the underlying index suits your horizon and your tolerance for a fall of thirty per cent, which no score can decide for you.

Data sourced from fund factsheets. Last updated 2025-05.