Gold ETFs in Australia: every ASX gold ETF compared
Written by an ex-institutional trader. The seven physically backed gold ETFs on the ASX side by side, what separates them (fee, vault, hedging, redemption), how to buy one, how gains are taxed, and when a gold CFD is the better tool than a gold ETF.
Direct answer
A gold ETF is an ASX-listed fund backed by physical gold bullion held in a vault, so its unit price follows the gold price minus a small annual fee. Australia has seven physically backed gold ETFs. The cheapest are GXLD and NUGG at 0.14 percent a year and PMGOLD at 0.15 percent, followed by GLDN at 0.18 percent. GOLD, the oldest and largest at close to AUD 6 billion, charges 0.40 percent. QAU (0.59 percent) and GHLD (0.35 percent) hedge the currency, so they track the US dollar gold price instead of the Australian dollar gold price.
You buy a gold ETF through any share broker, exactly like a share. There is no storage, insurance, or dealer premium to worry about, and gains are taxed as capital gains with the 50 percent CGT discount after 12 months. Gold pays no income, so there are no distributions. For short-term trading with leverage, or for going short, traders use gold CFDs (XAU/USD) instead, where ASIC caps retail leverage at 20:1.
What a gold ETF is
A gold ETF is a listed fund whose only asset is gold bullion. The issuer buys bars, a custodian stores them in a vault, and the fund's units trade on the ASX. Each unit represents a fixed and slowly shrinking quantity of gold; it shrinks because the management fee is paid by selling a sliver of metal. If gold rises 10 percent in Australian dollars over a year, an unhedged gold ETF with a 0.15 percent fee rises about 9.85 percent.
That is the entire product, and its simplicity is the point. Compared with buying coins or bars, you skip the dealer's premium (commonly 2 to 5 percent on small bars, more on coins), the storage question, and the insurance. You also get a bid-ask spread of a few cents and the ability to sell in seconds. What you give up is possession: you own units in a trust, not a bar in your safe.
Gold ETFs have been one of the faster-growing corners of the Australian ETF market, and competition has pushed fees down sharply. Two funds now charge 0.14 percent, about a third of what the original gold ETF still costs.
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ASX gold ETFs compared
All figures are from issuer product pages, checked September 2026.
| Ticker | Issuer | Fee (p.a.) | AUD hedged | Vault | Notable |
|---|---|---|---|---|---|
| GXLD | Global X | 0.14% | No | London (JPMorgan) | Low-cost sibling of GOLD |
| NUGG | VanEck | 0.14% | No | Perth Mint | Australian-origin gold; redeemable for bullion |
| PMGOLD | Perth Mint | 0.15% | No | Perth Mint | WA Government guarantee; convertible to bullion |
| GLDN | iShares | 0.18% | No | London (JPMorgan) | BlackRock's local gold fund |
| GHLD | Global X | 0.35% | Yes | See PDS | Cheaper hedged option |
| GOLD | Global X | 0.40% | No | London (JPMorgan) | Listed 2003; largest, about AUD 5.95 billion |
| QAU | Betashares | 0.59% | Yes | London (JPMorgan) | Longest-running hedged gold ETF |
The ASX's August 2026 product report still shows NUGG at 0.25 percent and GXLD at 0.15 percent; the issuers' own pages show 0.14 percent for both following recent cuts. Always confirm the current fee on the issuer's site.
What actually separates them
Every unhedged fund in that table tracks the same thing: the Australian dollar gold price. Over a year their returns differ by little more than their fees. So the choice comes down to four practical points.
Fee. On AUD 20,000, a 0.14 percent fee is AUD 28 a year and a 0.40 percent fee is AUD 80. Over a decade that gap compounds into something noticeable, though it will never be the main driver of your result. The gold price will.
Spread and size. GOLD is by far the largest and most heavily traded, and that usually means the tightest bid-ask spread. If you trade in and out a few times a year, a spread that is 0.05 percent tighter each way can offset a good part of the fee difference. If you buy once and hold for ten years, the fee matters more than the spread. Check the live spread on your broker's screen; it is the only number that counts on the day.
Where the gold is and who stands behind it. Four funds hold bars in JPMorgan's London vaults, the centre of the global bullion market. NUGG and PMGOLD hold gold at the Perth Mint. PMGOLD's structure is unique: units are entitlements to Perth Mint gold carrying a guarantee from the Government of Western Australia. Some investors value a sovereign guarantee and a local vault. Others prefer allocated bars in London under a conventional trust. Neither view is unreasonable.
Redemption for metal. PMGOLD and NUGG let holders convert units into physical bullion, subject to minimums and fees. Few people ever do, but it matters to those who want the option.
Hedged or unhedged?
Gold is priced globally in US dollars. An Australian holding an unhedged gold ETF is exposed to two things: the US dollar gold price and the AUD/USD exchange rate.
A quick example. Suppose gold rises 10 percent in US dollars over a year, and over the same year the Australian dollar rises 5 percent against the US dollar. An unhedged fund returns about 1.10 divided by 1.05, or 4.8 percent, before fees. A hedged fund returns about 10 percent, less a higher fee and hedging costs. If instead the Australian dollar had fallen 5 percent, the unhedged fund would have returned about 15.8 percent.
That asymmetry is why many Australians deliberately hold gold unhedged. The Australian dollar tends to fall when global markets panic, which is exactly when you want your gold holding to do its job. An unhedged gold ETF gets a second tailwind in those moments. A hedged one does not. The hedged funds make sense if you have a specific view that the Australian dollar will rise, or if you simply want the pure US dollar gold return.
How to buy a gold ETF in Australia
- Use any share broker. Gold ETFs are ordinary ASX-quoted securities. If you do not have a broker, how to invest in ETFs in Australia covers choosing one.
- Pick the ticker using the table above, and confirm the full fund name on the order ticket. GOLD and GXLD are different funds from the same issuer with very different fees.
- Place a limit order during ASX hours. Gold trades globally around the clock, so the ETF's price at 10 am Sydney time reflects overnight moves in New York and London. Avoid the first few minutes of the session while market makers settle their quotes.
- Keep the contract note. You will need the purchase price and brokerage for your cost base when you sell.
There are no distributions to elect and no annual tax statement of the usual kind to decode, because the fund earns no income. It is about as low-maintenance as a listed holding gets.
Gold miners and silver ETFs
A gold miners ETF is a share fund, not a bullion fund. GDX (VanEck, 0.53 percent, unhedged) and MNRS (Betashares, 0.57 percent, currency hedged) hold global gold mining companies. Miners' profits are leveraged to the gold price, so these funds typically move more than gold in both directions, and they carry company risks that bullion does not: cost blowouts, political risk, poor capital allocation. They behave like equities in a market crash.
For silver, the main ASX product is ETPMAG (Global X Physical Silver, 0.49 percent), backed by allocated bars in London and holding roughly AUD 1.5 billion. Silver is more volatile than gold and has a large industrial demand component. The trading side is covered in the silver trading guide.
Gold ETF vs gold CFD vs bullion
| Feature | Gold ETF | Gold CFD (XAU/USD) | Physical bullion |
|---|---|---|---|
| What you own | Units backed by vaulted gold | A contract on the gold price | The metal |
| Leverage | None | Up to 20:1 retail (ASIC cap) | None |
| Go short | No | Yes | No |
| Cost to hold AUD 20,000 for a year | AUD 28 to 118 in fees | Roughly AUD 1,300 in financing at a 6.5% rate | Storage and insurance, plus dealer premium |
| Trading hours | ASX session | Nearly 24 hours, five days | Dealer hours |
| Typical tax (individual) | CGT, 50% discount after 12 months | Ordinary income, no discount | CGT, 50% discount after 12 months |
| Best suited to | Holding gold for years | Trading gold for hours to weeks | Holding metal personally |
The holding-cost row settles most arguments. A gold ETF costs next to nothing to hold. A leveraged long gold CFD held for a year costs several percent in financing, which makes it the wrong tool for a long-term position. It is the right tool for a different job: reacting to a US inflation print at 10:30 pm Sydney time when the ASX is shut, running a short position when you think gold has overshot, or taking a small, defined-risk position with a stop. Those are trading decisions, with trading risks, and most retail CFD accounts lose money. The full treatment, including brokers, spreads, and what moves the price, is in gold trading in Australia, and the general mechanics of CFDs on funds are in ETF trading in Australia.
Trade gold CFDs with AvaTrade
ASIC-regulated (AFSL 406684). Gold (XAU/USD) CFDs with up to 20:1 retail leverage, a fixed-spread account option, the AvaProtect downside-protection tool, and the GDX gold miners ETF CFD. AUD 100 minimum, free demo account. CFDs are leveraged and you do not own any gold.
Open AvaTrade accountHow gold ETFs are taxed
For an individual investor, units in a gold ETF are a capital gains tax asset. Sell for more than your cost base (purchase price plus brokerage) and you have a capital gain. If you held the units for at least 12 months, the 50 percent CGT discount generally applies, so only half the gain is added to your taxable income. Capital losses can offset capital gains but not other income.
Because bullion funds earn no income, there is normally nothing to declare year to year until you sell. That makes a gold ETF one of the more tax-simple holdings available. Gold CFD profits are treated differently: the ATO's approach in TR 2005/15 is that they are generally ordinary income, taxed at your marginal rate with no discount. More in the ETF tax guide. This is general information; see a registered tax agent for your own position.
Sources and primary references
- Issuer product pages: Global X GOLD, GXLD, Perth Mint PMGOLD, VanEck NUGG, iShares GLDN, Betashares QAU.
- ASX Investment Products monthly report, August 2026 - fund sizes and fees.
- ATO: CGT discount - the 12-month holding rule.
- ASIC CFD product intervention order - the 20:1 retail leverage cap on gold CFDs.
The CFD financing figure assumes a 6.5 percent annual rate on the full position value for illustration. Last reviewed: 2026-09-19.
Frequently asked questions
What is the best gold ETF in Australia?
It depends on what you value, and this is general information, not advice. On fees, GXLD and NUGG (0.14 percent) and PMGOLD (0.15 percent) are the cheapest. On size and trading liquidity, GOLD is the largest, at close to AUD 6 billion, and typically has the tightest bid-ask spread. PMGOLD is backed by a Western Australian Government guarantee, and NUGG holds Australian-sourced gold at the Perth Mint. If you want the US dollar gold price without Australian dollar movements, QAU and GHLD are the currency hedged options.
How do I buy a gold ETF in Australia?
Open an account with any Australian share broker, deposit funds, search for the ticker (for example GOLD, PMGOLD, GXLD, NUGG, GLDN, or QAU), and place a buy order during ASX hours, 10 am to 4 pm Sydney time. Use a limit order. The trade settles in two business days. You need no special account and there is no minimum beyond your broker's, which is commonly AUD 500 for a first purchase.
Is a gold ETF backed by real gold?
All seven ASX gold bullion ETFs are physically backed. GOLD, GXLD, GLDN, and QAU hold bars in London vaults operated by JPMorgan. NUGG holds Australian-origin gold at the Perth Mint. PMGOLD is structured slightly differently: each unit is an entitlement to gold held by the Perth Mint, guaranteed by the Government of Western Australia. PMGOLD and NUGG both allow holders to convert to physical bullion, subject to conditions.
Is a gold ETF better than physical gold?
For most investors a gold ETF is cheaper and easier. There is no dealer premium of several percent, no storage or insurance, and you can sell in seconds at a tight spread. Physical gold suits people who specifically want metal in their own possession and accept the costs of that. The tax treatment is similar: both are capital gains tax assets for an investor, with the 50 percent discount after 12 months.
Why is a gold ETF considered high risk?
Because gold is volatile and produces no income. The gold price has had multi-year declines of 30 to 45 percent, such as 2011 to 2015, and there are no dividends to cushion a fall. An unhedged gold ETF also carries currency risk, since the Australian dollar gold price depends on the AUD/USD rate. The ETF structure itself is not the risk; the asset is.
Do gold ETFs pay dividends?
No. Gold bullion earns nothing, so physical gold ETFs pay no distributions. Your entire return comes from the change in the unit price. Gold miner ETFs such as GDX and MNRS are different: they hold company shares and can pay small distributions.
Should I buy a hedged or unhedged gold ETF?
An unhedged gold ETF (GOLD, PMGOLD, GXLD, NUGG, GLDN) follows the gold price in Australian dollars. It tends to do well when the Australian dollar falls, which often happens during global market stress, so it has historically been the better portfolio shock absorber for Australians. A hedged gold ETF (QAU, GHLD) follows the US dollar gold price and removes currency effects, at a higher fee. Which suits you depends on whether you want the currency effect or not.
Can I trade gold with leverage instead of buying a gold ETF?
Yes, through a gold CFD on XAU/USD with an ASIC-regulated broker. ASIC caps retail gold leverage at 20:1, so a AUD 1,000 margin controls AUD 20,000 of gold, and you can go short as easily as long. You do not own any gold, you pay overnight financing on positions held past the daily rollover, and profits are generally taxed as ordinary income without the CGT discount. Most retail CFD accounts lose money, so treat it as short-term trading, not investing.
