Riding the Gold Rally: Top ETFs to Consider Now
Gold surges past $3,045 amid geopolitical tensions, outperforming stocks with a 14.98% YTD return as a safe-haven asset.
Against the backdrop of heightened geopolitical tension and growing market uncertainty, the pivot towards gold as a safe-haven asset has resulted in it surpassing the $3,000-per-ounce threshold. Recently, spot gold reached an all-time high of $3,045.24, marking the 15th record this year.
Since the U.S. Presidential Election on November 4, 2024, gold has gradually appreciated, with its upward trajectory truly taking hold after December 19, 2024. As a reminder, gold surprisingly outperformed U.S. large-cap equities, returning 26.62%, while the S&P 500 Index returned 25.02%. As of March 18, 2025, the year-to-date performance of gold has been 14.98%, outperforming the S&P 500 Index. Given gold’s value proposition as a hedge against inflation, a source of diversification, and a buffer against uncertainty, it is intuitively an asset class many investors turn to for safety as a means of mitigating market drawdowns.
Gaining Gold Exposure
For Canadian investors interested in gaining exposure to gold, below are some ETFs worth considering:
The Global X Gold ETF (Ticker: HUG) reflects the performance of the Solactive Gold Front Month MD Rolling Futures Index ER, which tracks the performance of the front-month Gold future and rolls the exposure over four days from the active contract into the next active contract. Year-to-date, as of March 17, 2025, HUG has returned 13.21%.
The BMO Equal Weight Global Gold Index ETF (Ticker: ZGD) reflects the performance of the Solactive Equal Weight Global Gold Index, which includes global securities in the gold industry. Year-to-date, as of March 17, 2025, HUG has returned 29.59%.
The Purpose Gold Bullion Fund ETF (Tickers: KILO/KILO.B/KILO.U) invests in and holds primarily pure, refined and unencumbered gold bullion on a long-term basis in 1,000 grams London Good Delivery Bars, providing investors with a secure, convenient, low-cost alternative for investors interested in holding an investment in gold bullion. Year-to-date, as of March 17, 2025, the returns of KILO, KILO.B, and KILO.U have been 13.95%, 13.56%, and 14.28%, respectively.
For investors interested in gold exposure, here’s a list of Gold ETFs (Commodity) tracking the metal’s price and Gold Miners ETFs (Equities) focused on mining stocks.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
