UTI Gold ETF has emerged as the top performer in its category with a 34% three-year compound annual growth rate. While it leads over longer periods, investors should note that rankings fluctuate significantly across short-term windows like one or three months.
UTI Gold ETF has outperformed its peers in the gold Exchange-Traded Fund (ETF) segment, delivering a three-year compound annual growth rate (CAGR) of 34.0%. This data, compiled as of July 7, 2026, places it slightly ahead of ICICI Prudential Gold ETF and Aditya Birla Sun Life Gold ETF, both of which recorded 33.7% returns over the same three-year period.
The fund’s long-term performance stands out notably against its benchmark. Over the three-year horizon, the UTI Gold ETF outperformed its assigned benchmark by 32.3 percentage points, as the benchmark itself returned only 1.7%. This gap remained significant on a one-year basis, where the ETF delivered a 48.0% return against the benchmark’s 10.1% performance.
While the fund shows consistent returns over extended periods, short-term performance tells a more varied story. Market data indicates that Mirae Asset Gold ETF recently took the lead in both one-month and three-month performance categories, with returns of -6.6% and -2.4% respectively. These shifts remind investors that gold ETFs are subject to short-term price volatility influenced by global bullion market trends and currency fluctuations.
Investors comparing these funds often look at Assets Under Management (AUM) to assess the size and liquidity of the fund. ICICI Prudential Gold ETF currently holds the largest AUM among the top five funds in this category, managing approximately Rs 27,578.2 crore. A larger AUM can sometimes offer better liquidity, though it does not necessarily guarantee superior returns compared to smaller funds.
When evaluating gold ETFs, the primary goal for most investors is to track the domestic price of physical gold as closely as possible. The tracking error—the difference between the ETF's performance and the gold price index—is a critical metric to monitor. A high tracking error can result in lower returns compared to the actual gold price. Additionally, investors should consider the expense ratio, which is the annual fee charged by the fund house. Even small differences in these fees can impact long-term gains. Future performance for these funds will depend on the movement of international gold prices, the USD-INR exchange rate, and how efficiently each fund manager minimizes the tracking error relative to their specific benchmark.