The Best Gold ETFs For Singapore Investors

Gold prices are soaring, recently surpassing the $3,000 per ounce mark, fueling investor interest in using it as a hedge against inflation and economic uncertainty. This surge makes it a good time to consider gold ETFs as part of a diversified investment strategy.

Here are some of the top-performing gold ETFs in 2025.

Gold ETFs are investment funds that aim to track the price of gold, allowing investors to gain exposure to gold's price movements without the need to own physical gold. 

Here are two types of gold ETFs available:

• Physical gold ETFs: These ETFs are backed by physical gold bullion, which is stored in secure vaults. This type of ETF closely mirrors the price of gold.

• Gold mining ETFs: These ETFs invest in the shares of companies involved in gold mining. Their performance is linked to the profitability of these companies, which is influenced by gold prices.

Gold ETFs offer several benefits:

• Liquidity: Gold ETFs can be easily bought and sold on stock exchanges, providing greater flexibility compared to physical gold.

• Cost-effectiveness: Investing in gold ETFs often involves lower transaction costs compared to buying and storing physical gold.

• Diversification: Gold ETFs can provide a hedge against inflation and currency fluctuations, diversifying your investment portfolio.

However, there are also considerations to keep in mind when investing in ETFs:

• Expense ratios: These are the annual fees charged by the ETF, which can impact your long-term returns.

• Storage and insurance costs: For physically backed ETFs, these costs are factored into the expense ratio.

• Market risks: Like any investment, gold prices can be volatile, influenced by global economic factors and investor sentiment.

>> Read more: How to Buy Gold in Singapore and Add it to Your Investment Portfolio

Ready to add gold ETFs to your investment portfolio? Here's how to go about it.

When choosing a gold ETF, consider factors such as the expense ratio, liquidity, and fund size. 

For SGD-denominated ETFs like SPDR Gold Shares (GSD.SI), trading on the Singapore Exchange (SGX) is straightforward. Meanwhile, for USD-denominated ETFs like IAU, SGOL, and BAR, you should ensure your brokerage platform supports international trading.

Select a brokerage platform that offers access to your chosen ETFs. If you plan to diversify across different markets, ensure the platform supports both local and international ETF transactions.

You'll need to deposit sufficient funds into your brokerage account to cover the cost of your ETF purchases and any associated transaction fees.

>> You might like: What Are Mutual Funds, And How to Pick The Best Mutual Funds In Singapore 2025

Learn more about your investment options

• Best-Performing ESG ETFs and Cheapest ESG ETFs for February 2025
• What are Index Funds and Mutual Funds?

Decide on the number of ETF units you wish to purchase. You can choose between market orders, which are executed immediately at the current market price, or limit orders, which allow for a specified price.

Regularly review the performance of your gold ETFs. Stay informed about factors influencing gold prices, such as global economic indicators, interest rates, and geopolitical events, as these can significantly impact your investment.

The authors and editors held no financial stake in the investments mentioned at the time of writing.