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%.

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Here’s a cheap FTSE 100 heavyweight, an underpriced investment trust, and a surging exchange-traded fund (ETF) to consider.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Standard Chartered

It’s my belief that Standard Chartered (LSE: STAN) is one of the FTSE’s best bargain stocks to look at currently.

For 2025, it trades on a forward price-to-earnings (P/E) ratio of 8.6 times. This is based on broker forecasts that annual earnings will rise 14% year on year.

On top of this, the company’s corresponding price-to-earnings growth (PEG) ratio is just 0.5. Any reading below 1 implies that a share is undervalued.

StanChart shares also look cheap based on the value of its assets. As with its PEG ratio, the bank’s price-to-book (P/B) multiple sits below the value watermark of 1, at 0.7.

Its low valuation reflects, in part, fears over how trade tariffs could impact profits. The threat is especially high in its key Chinese market.

Yet Standard Chartered’s resilience so far means I’m optimistic about its ability to ride out any volatility. Operating income and pre-tax profit rose 5% and 10%, respectively, in Q1.

Henderson European Trust

The Henderson European Trust (LSE:HET) — as the name implies — holds a portfolio of stocks that are based on the continent (but excluding the UK). More specifically, it targets “global leaders that happen to be based in Europe,” like semiconductor manufacturer ASML, defence giant Safran and bank BNP Paribas.

Today the trust trades at a 7.2% discount to its net asset value (NAV) per share of 203.3p. I think this represents an attractive dip-buying opportunity to consider.

I like this Henderson fund because of its wide diversification by both geography and sector. This doesn’t eliminate the very real threat posed by a eurozone-wide slowdown. But it helps to limit the risk to investors’ funds.

This exceptional diversification hasn’t impacted its ability to deliver a healthy return so far. Its average annual return since 2015 stands at a tasty 7.8%.

WisdomTree Physical Gold

Global gold-backed ETFs are enjoying spectacular demand as macroeconomic fears linger and the US dollar weakens. Both of these are classic drivers of the safe-haven asset, and encouragingly for gold investors, both phenomena look set to continue.

According to latest World Gold Council (WGC) data, bullion-backed ETFs enjoyed their strongest inflows since March 2022 last month. Total assets under management (AUMs) now stand at record highs of $379bn.

Weak jewellery sales and cooling central bank purchases pose a threat to gold prices. But on balance, I’m expecting bullion to surpass last month’s record peaks of $3,500 an ounce due to strong retail investor demand in the short term.

Against this backdrop, I think the WisdomTree Physical Gold (LSE:PHAU) fund is worth serious attention. A fund like this saves investors the hassle of having to buy and store physical gold.

And unlike gold miner stocks, it doesn’t expose investors to the volatile business of metals mining.

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Luckily, these financial instruments offer investors an indirect but convenient method of investing their wealth into the precious metal, a historically safe haven against economic volatility.

But what exactly is a gold ETF? And are they actually a good investment? Let’s break it down.

What is a gold ETF?

A gold exchange-traded fund focuses exclusively on investing investor capital into financial assets and securities related to gold. This includes both the physical metal as well as gold stocks. Both funds and shares can expose you to the gold sector, but ETFs are typically a less risky way to invest in gold.

The first gold ETF emerged in Australia in 2003 and in the US in 2004 in two different forms.

1. Gold commodity ETFs

Also known as a Physical Gold ETF, the fund manager invests shareholder capital into gold bullion, typically coins or bars. Because it holds commodities rather than stocks, this fund is more commonly referred to as an exchange-traded commodity or ETC.

The share prices of these ETCs are highly correlated with the movements of gold spot prices. And ETCs provide a far more convenient way for investors to store their wealth in gold. After all, owning physical gold requires safe storage, which can be difficult and expensive to access. Physical gold can also be harder to liquidate on short notice.

2. Gold mining ETFs

The fund manager invests shareholder capital into high-quality gold mining businesses worldwide.

As businesses produce cash flow, this type of gold ETF has the potential to deliver better performance for investors. However, mining companies are also exposed to several risks, which can make the fund significantly more volatile.

The share prices of these ETFs are partially correlated with the movement in gold prices but are primarily driven by the financial and operational performance of the mining stocks instead.

Top gold ETFs in the UK

Here are a few of the top UK gold ETFs:

*Fund Size data accurate as of 8 January 2026.

iShares Physical Gold ETC

The iShares Physical Gold ETC is a physical gold ETF, and aims to match the spot price of gold bullion as closely as possible after management fees are taken.

The fund only accepts gold bullion that meets the Good Delivery standards laid out by the London Bullion Market Association. Furthermore, all assets held are classified as responsibly sourced, with its custodian only allocating gold that was mined after 2012.

Invesco Physical Gold ETC

The Invesco Physical Gold ETC is another physical gold ETF, and it aims to replicate the spot price movement of gold bullion as closely as possible, minus the annual management fees.

The physical gold owned by the ETC is held by JPMorgan Chase Bank in the London Vaults.

WisdomTree Physical Gold

As the name suggests, the WisdomTree Physical Gold ETF is a physical gold ETF designed to provide investors with a cost-efficient method of buying gold. It aims to track the spot price movements of gold bullion minus the annual management fees.

The physical gold owned by the ETF meets the Good Delivery standards laid out by the London Bullion Market Association. It’s held by HSBC Bank, which serves as the fund’s custodian.

Gold Bullion Securities

The Gold Bullion Securities ETC attempts to mimic the movements in physical gold spot prices minus annual management fees.

The physical gold owned by the ETF meets the Good Delivery standards laid out by the London Bullion Market Association. It’s held by HSBC Bank, which serves as the fund’s custodian.

VanEck Gold Miners UCITS ETF

The VanEck Gold Miners ETF is a gold mining ETF investing shareholder capital into a diversified portfolio of 48 publicly traded gold mining stocks. The fund is designed to track the performance of the NYSE Arca Gold Miners Index by investing in industry-leading gold mining companies.

A large chunk of the fund’s portfolio consists of Canadian businesses, with the rest consisting of American and Australian firms. Its largest holding is Newmont Corp, which represents 8.98% of the underlying investment portfolio.

How to invest in gold ETFs

ETFs and ETCs can be bought and sold like regular stocks. And providing the ETF is listed on an exchange to which a brokerage account has access, investors can quickly add these financial instruments to their personal portfolios.

Here are the general steps involved when investing in a gold ETF:

1. Based on investment goals, decide whether to invest in a gold mining ETF or gold bullion ETC
2. Research the selected funds and clearly understand the fee structure
3. Buy shares in the fund with a brokerage account

Are gold ETFs a good buy?

Gold ETFs provide a great deal of convenience to investors. Beyond solving many of the expensive logistical challenges of transporting and storing physical gold, these financial securities are far more liquid.

This is why they remain a top choice for UK gold investors seeking to gain exposure to protect their wealth against inflation as well as hedge against the escalating geopolitical climate in 2026.

However, there are some caveats. Management fees can slowly diminish wealth, especially if the gold spot price does not increase over time. Furthermore, the share price of an ETF can be subject to higher volatility than the commodity itself, making it a riskier alternative.

Whether a gold ETF is a good buy versus purchasing physical gold ultimately depends on the individual’s financial goals and risk tolerance.

Is there a gold ETF that pays dividends?

In the UK, most gold ETFs and ETCs do not pay a dividend. They’re designed to track the price of gold, a commodity that doesn’t generate any cash flows. Given that demand for gold ETFs is usually a result of hedging against inflation or economic volatility, dividends are rarely a priority for these types of funds.

Some gold mining ETFs, such as UBS Solactive Global Pure Gold Miners, do offer dividends. The key difference here is that instead of investing in the yellow metal directly, these funds focus on the companies that extract it from the ground, which often pay out dividends to shareholders.

However, mining stocks, even those focused on gold, are significantly more volatile compared to physical gold ETFs. Therefore, investors need to consider whether such risk exposure is suitable depending on their individual circumstances.

Frequently asked questions

What is the best way to invest in physical gold?

Gold has long served as a safe haven asset that can be used to protect wealth, especially during times of economic turmoil. There are lots of different ways to invest in physical gold, including gold bullion and jewellery. Each has its advantages and disadvantages, so we created a comprehensive guide to help investors.

Is it better to buy physical gold or an ETF?

Determining whether physical gold or a gold ETF is a better investment depends on personal circumstances, risk tolerance, and objectives. There are some key differences to the process outlined in the table below:

Is it better to buy physical gold or digital gold?

Determining whether physical gold or digital gold is a better investment depends on personal circumstances, risk tolerance, and objectives. There are some key differences to the process outlined in the table below:

Does Vanguard have a gold ETF?

No. As of January 2026, Vanguard currently does not offer a dedicated gold ETF.

Historically, Vanguard has favoured launching mutual funds and index exchange-traded funds rather than ETCs. However, the Vanguard Global Capital Cycles Fund is a mutual fund that aims to invest at least a quarter of its assets in precious metals like gold and silver, as well as mining companies. This offers investors indirect exposure with Vanguard mutual funds.

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