Top Gold ETFs: These 5 ETFs delivered the best 3-month returns; The Wealth Company leads the list

Gold ETFs have lost some ground in the latest three-month period, even as most schemes have delivered returns of more than 50% over one year. The Wealth Company Gold ETF recorded the best three-month return at -2.33%, while Tata Gold ETF, Bandhan Gold ETF, 360 ONE Gold ETF and Mirae Asset Gold ETF followed closely behind.

The short-term decline comes against a much stronger one-year performance. Among the schemes with one-year data, returns were largely in the 52-53% range, with Aditya Birla Sun Life Gold ETF leading at 53.25%.

The top five gold ETFs over three months

The Wealth Company Gold ETF topped the three-month ranking with a return of -2.33%. Tata Gold ETF was second at -2.43%, while Bandhan Gold ETF and 360 ONE Gold ETF both returned -2.44%. Mirae Asset Gold ETF completed the top five at -2.45%.

The difference between the five funds was just 0.12 percentage point.

The next group was also tightly packed. Choice Gold ETF, Aditya Birla Sun Life Gold ETF, DSP Gold ETF, LIC MF Gold ETF and Edelweiss Gold ETF each recorded a three-month return of -2.46%.

At the other end, Zerodha Gold ETF posted the lowest three-month return in the data at -2.73%.

Six-month returns move into positive territory

The Wealth Company Gold ETF led the rankings here as well at 1.42% returns.

Tata Gold ETF and Mirae Asset Gold ETF both returned 1.38%, while 360 ONE Gold ETF delivered 1.37%. Bandhan Gold ETF recorded 1.31%.

Among other schemes, HDFC Gold ETF returned 1.28%, Edelweiss Gold ETF 1.32% and Kotak Gold ETF 1.32%. Nippon India ETF Gold BeES delivered 1.17%.

LIC MF Gold ETF had the lowest six-month return among schemes analysed at 0.56%.

One-year returns remain above 50%

The one-year returns were substantially higher, with most schemes for which data is available delivering between 51% and 54%.

Aditya Birla Sun Life Gold ETF topped the one-year ranking at 53.25%, followed by Quantum Gold ETF and UTI Gold Exchange Traded Fund at 53.18% each. ICICI Prudential Gold Exchange Traded Fund returned 53.14%.

DSP Gold ETF delivered 53.01%, while HDFC Gold ETF returned 52.98%. Among the five funds that led the three-month ranking, Mirae Asset Gold ETF had the highest one-year return at 52.87%, followed by Tata Gold ETF at 52.86%. 360 ONE Gold ETF returned 52.03%.

Zerodha Gold ETF recorded the lowest one-year return among schemes at 51.84%.

For investors considering gold ETFs, returns should therefore be assessed alongside tracking error, expense ratio, liquidity and assets under management. A fund that has marginally outperformed its peers over three months may not necessarily be the most suitable choice for a longer-term portfolio.

The recent three-month numbers also underline an important point about gold as an asset class. Strong longer-term returns can coexist with periods of short-term consolidation or declines. Investors looking at gold ETFs should therefore assess them as a portfolio diversification tool rather than selecting a scheme solely because it ranks first on a short-term return chart.