Image source: Getty Images
Demand for gold-linked exchange-traded funds (ETFs) is rocketing as prices of the yellow metal boom. Overnight, the precious metal struck new peaks above $4,000 per ounce as investors charged into safe-haven assets.
Rapid growth in the ETF market means investors have plenty of ways they can capitalise on surging precious metal values. Here are three to consider today.
Keeping it simple
The simplest way to ride the gold price is with a straightforward tracker like WisdomTree Physical Gold (LSE:PHAU). The fund holds physical metal in vaults on investors’ behalf, saving them the trouble of delivery and storage.
Interest in these sorts of ETFs is at all-time highs. According to the World Gold Council (WGC), holdings in these funds increased by 146 tonnes in September. This was up from 53 tonnes the previous month and represented a monthly record.
Naturally, owners of these products need to pay for the benefits they provide. This can take an unwelcome bite out of returns (WisdomTree’s annual ongoing charge sits at 0.39%).
Yet they can still be more cost effective than buying and holding physical metal, while opening and closing positions is also less complicated.
An alternative ETF
Gold might be attracting the headlines, but silver’s ascent in 2025 has been even sharper. The grey metal’s up 69% in value, outstripping its more expensive cousin’s 54% increase.
Silver’s being pulled higher by the same macroeconomic and geopolitical fears that are driving gold. As well as having major industrial applications, silver is also a popular safe-haven commodity. There’s a strong chance it could continue rising in gold’s slipstream.
The iShares Physical Silver ETF (LSE:SSLN) is one top fund to consider. It tracks movements in the silver price, and is backed by physical metal. Its ongoing yearly charge is 0.2%.
This ETF has provided superior returns to gold-backed funds since 1 January. But be aware that silver’s industrial applications mean the fund could underperform if key economic indicators worsen.
Holding gold stocks
The final type of ETF I feel demands attention is one that holds shares in precious metal stocks. VanEck Gold Miners (LSE:GDGB) is a fund that’s soared 120% in value in 2025, reflecting the ‘leverage’ effect that has seen it outperform the gold price.
Put simply, producer profits can grow more sharply than revenues during bull markets. Due to their fixed costs, each extra dollar they make from higher prices drops straight into the bottom line. As a result, share prices across the gold mining industry have rocketed this year.
This VanEck fund holds shares in 46 different companies including industry giants Agnico Eagle Mines, Newmont, and Barrick Mining. Tracking the performance of gold stocks instead of gold itself exposes investors to the risks associated to mining, like disappointing payloads and rocketing prices.
However, VanEck’s broad portfolio helps to reduce this danger. The ongoing annual charge here is 0.53%.
This story originally appeared on Motley Fool
