The Best Gold ETFs With Low Costs

These gold ETFs offer investors multiple low-cost ways to play the metal, from direct exposure to stock-related angles.

stacked gold bars
(Image credit: Getty Images)

It's a good time to be a proponent of gold and gold ETFs (exchange-traded funds). The cost of investing in gold through funds continues to trickle lower, and the variety of ways to get exposure to gold continues to grow.

And the price of gold continues to trend higher amid monetary and fiscal policy uncertainty in the U.S. and increased buying from central banks in Asia diversifying their foreign reserves. 

At the same time, a recent study conducted by State Street Global Advisors and the World Gold Council found that many financial advisers view gold as a "global asset with a multitude of both strategic and tactical drivers."

The survey found that 35% of the advisers surveyed said their clients have expressed a desire to invest in gold. These demand drivers make "a strong case" for gold in the year ahead, State Street says.

Why should I invest in gold?

Gold investors typically tout several virtues of the yellow metal. For one, it provides a hedge against inflation. It's also an uncorrelated asset that doesn't move with the stock market. And it can grow in value amid high and rising domestic and/or geopolitical uncertainty.

Indeed, according to a separate study from State Street Global Advisors, the majority of high-net-worth investors surveyed appreciate gold's safe-have status. They also invest in gold because it's a tangible asset and they also use it to preserve wealth.

According to those surveyed, 69% feel that gold ETFs are the best way to invest in the precious metal and 68% believe it is cheaper to invest in exchange-traded funds vs actual bullion.

What are the best gold ETFs?

Before you use these commodity ETFs to diversify your portfolio, it's a good idea to learn the ins and outs of gold investing.

The first thing you need to know about gold is that it has "has generated disappointing long-term returns compared to stocks," says Dan Burrows, senior investing writer at Kiplinger.com. That's one of 10 facts he enumerates in his article on what you need to know about investing in gold.

Another point Dan makes is that if you invest in gold, make it a small portion (5%) of your portfolio. And ETFs, specifically, allow for liquidity, low expenses and ease of use.

Here are seven low-cost gold ETFs that provide efficient exposure to the precious metal.

Our list includes the most ubiquitous gold ETFs on the market – funds you'll read about in daily commodity wrap-ups – as well as a few that aren't as well-covered but might make more sense for you than their better-known brethren.

Data is as of March 24.

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.

You can check out his thoughts on the markets (and more) at @KyleWoodley.