Major gold ETFs posted negative three-month returns, with Mirae Asset Gold ETF leading the category at -4.6%. Despite recent short-term volatility, some funds have delivered strong one-year gains of up to 44.1%. Investors should track long-term performance and tracking error when comparing these commodity-linked funds.
Detailed Coverage
Gold ETFs in India have seen a dip in short-term performance as of late July 2026. Data shows that most major funds in this category posted negative returns over the three-month period. Mirae Asset Gold ETF recorded a return of -4.6%, which placed it at the top of the category among funds with at least ₹1,500 crore in assets under management. Rival funds such as DSP Gold ETF and Aditya Birla SL (ABSL) Gold ETF followed closely, each registering a return of -4.7% for the same three-month window.
While short-term results have been under pressure, looking at a longer time horizon reveals a different trend. Gold ETFs generally track the domestic price of physical gold, and their performance is often influenced by global gold prices and currency fluctuations between the Indian Rupee and the US Dollar. For instance, the Aditya Birla SL Gold ETF delivered a one-year return of 44.1%, showing how price movements over a longer period can differ significantly from short-term snapshots.
Investors evaluating these funds often look at how closely a fund tracks its benchmark. Mirae Asset Gold ETF has shown a strong gap in performance compared to its benchmark over one and three years, suggesting lower tracking error or differences in expense ratios that impact net returns for investors. Meanwhile, the three-year performance leader is the ICICI Pru Gold ETF, which reported a return of 33.0% for that period.
When choosing between these ETFs, investors should consider that these funds do not aim to outperform the price of gold, but rather to mirror it as closely as possible after deducting costs. Factors like the fund's expense ratio, liquidity on the stock exchange, and how accurately it follows the price of gold are key. Since these funds are linked to a commodity, they carry the inherent risk of gold price volatility, which is determined by global demand, central bank buying, and interest rate trends. Investors may monitor the expense ratios and the tracking error of their chosen fund to understand how much of the gold price gain is actually being passed on to them.