Gold ETFs deliver upto 72% return in 2025. What should investors expect in 2026?
Gold ETFs surged in 2025, offering investors a safe haven amid global turmoil. Tata Gold ETF led with a 72.17% return. Experts foresee continued gold demand in 2026, driven by geopolitical risks and inflation. Investors are advised to consider their risk appetite for future decisions.
Gold exchange-traded funds (ETFs) emerged as one of the standout performers in 2025, delivering returns of up to 72% as investors sought safety amid global uncertainty, geopolitical tensions, and shifting interest-rate expectations.
There were 18 funds based on gold commodity of which Tata Gold ETF delivered the highest return of 72.17% in 2025, followed by Quantum Gold Fund ETF which gave 71.27% in the same period.
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Nippon India ETF Gold BeES, the largest fund in the category, gave 70.20% in the same period. LIC MF Gold ETF was the last one in the list to deliver 68.70% in the same period.
Rajeev Sharan, Head – Criteria, Model Development & Research, Brickwork Ratings said the rally in gold, silver, and copper through 2025 was more than a market surge—it was a signal of deeper economic shifts.
“For India, the paradox is acute. The import duty cuts on gold and silver from 15% to 6% should have catalysed consumption; however, the unchanged 3% GST continues to limit retail demand. Meanwhile, 50% US tariffs on jewellery exports create headwinds that lower import tariffs cannot fully offset. India’s copper demand is poised to accelerate as data centre capacity expands to 4–8 GW by 2030,” Sharan added.
On the other hand, Inderbir Singh Jolly, CEO, PL Wealth says that Gold’s performance in 2025 reflects a structural shift in how investors and central banks are positioning portfolios and the rally is not driven by short-term speculation but by sustained investment flows into ETFs, alongside continued central bank buying as part of long-term reserve diversification.
In 2025, gold ETFs received a total inflow of Rs 31,314 crore till November (last available data). The net received in November 2025 marked the seventh consecutive month of positive inflows as in March and April 2025, the category saw an outflow of Rs 77.21 crore and Rs 5.82 crore respectively.
The AUM of gold ETFs went up by 148% from an AUM of Rs 44,595 crore in December 2024 to Rs 1.10 lakh crore in November 2025.
**Also Read | Quant Mutual Fund remains tilted toward large caps; increases exposure in pvt sector banks and insurance companies ** Till November 2025, around five gold ETFs were launched in calendar year 2025 which together collected Rs 93 crore. According to monthly data released by Association of Mutual Funds in India (AMFI), the five gold ETFs launched were - Union Gold ETF, 360 ONE GOLD ETF, Motilal Oswal Gold ETF, Angel One Gold ETF, and Choice Gold ETF.