As we’ve been covering this week, gold, and by extension gold exchange-traded funds (ETFs), are currently in the middle of one of the most dramatic bull runs in the history of precious metal investing. Two years ago, the yellow metal was going for around US$2,000 an ounce. One year ago, that same ounce was worth just under US$2,800. Today, it will cost an investor about US$4,800 after hitting another new record high of US$4,887 in the past 24 hours. That’s a 12-month gain worth a whopping 71% or so.
Many of the factors that have pushed gold higher over the past few years arguably remain in place today. Economic uncertainty remains a constant in the global economy, exemplified this week by the storm of tariff threats and trade sanctions being thrown around in response to US President Donald Trump’s aspiration to acquire Greenland. Government debt across major economies of the world continues to climb. Central banks continue to snap up gold at record rates. And geopolitical tensions remain high across several global hotspots.
As such, many ASX investors may wish to add gold (or more gold) to their portfolios in 2026, despite the record-high prices. Of course, physical gold bullion in bar or coin form will continue to be the preference of many investors seeking to buy gold. However, many others might prefer the ease of investing in gold ETFs over holding physical metal.
There are many gold ETFs on the ASX that these investors can choose from. So, which is the best? Let’s look at some options.
Which ASX gold ETF is the best to buy in 2026?
For starters, there’s Perth Mint Gold (ASX: PMGOLD). This ETF is managed by the Perth Mint. Its units represent ownership of physical metal held in the Perth Mint vault, and are subject to a government guarantee from Western Australia. They can even be converted to gold bullion if investors wish. As with all of the ETFs we’ll discuss today, this tie to gold means that PMGOLD units should rise and fall in value alongside the price of gold itself.
Perth Mint Gold charges a management fee of 0.15% per annum.
There’s also the Global X Physical Gold ETF (ASX: GOLD) to consider. This gold ETF works similarly to Perth Mint Gold, with each unit representing entitlement to a physical store of precious metal. In this case, that bullion is held in a vault in London. The Global X Physical Gold ETF charges a fee of 0.4% per annum.
Another gold ETF in this vein is the VanEck Gold Bullion ETF (ASX: NUGG). NUGG units are tied to physical gold held in an Australian vault. Like PMGOLD, the units can be exchanged for bullion at investors’ convenience. This ETF asks an annual management fee of 0.25%.
To hedge or not to hedge?
All of the funds we’ve discussed offer gold exposure to Australian investors in US dollar terms. The units are unhedged to Australian dollars, meaning that fluctuations in our exchange rate can influence the pricing of these ETFs, even if the underlying price of gold in US dollars doesn’t change.
However, the BetaShares Gold Bullion Currency Hedged ETF (ASX: QAU) is different. It still holds bullion in a London vault, and its units are tied to the value of that bullion. But this ETF also uses currency hedging to mitigate any movements in the Australian dollar, effectively offering a pure exposure to gold in US dollar terms.
This doesn’t come free, though, and QAU charges a management fee of 0.59% per annum for its services.
It’s a similar story with the Global X Gold Bullion (Currency Hedged) ETF (ASX: GHLD). This ETF works almost identically to GOLD, but also adds a hedging mechanism. It asks 0.35% per annum in management fees.
Foolish Takeaway
As you can see, there are many gold ETFs on the ASX for precious metal enthusiasts to choose from. Which is the best choice comes down to individual preference. If you like the idea of an Australian holding, PMGOLD or NUGG might be your preferred option. PMGOLD also offers the lowest fees on this list, and has significantly more assets under management than NUGG.
If you wish to employ currency hedging, then QAU or GHLD are your only choices. Given the differences in fees there, I would personally be more inclined to give GHLD a look.
The post With gold up 71%, which is the best ASX gold ETF to buy? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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