Akshaya Tritiya: How gold ETFs performed in last 10 calendar years

Economic Times

30-04-2025

ETMarkets.com Gold ETFs delivered strong returns over the past decade, with average gains peaking at 26.24%, attracting growing investor interest.
As India marks the auspicious festival of Akshaya Tritiya today, considered as one of the most auspicious days in the Hindu calendar for initiating new ventures and making significant purchases, particularly of gold. But beyond ornaments and coins, an increasing number of Indians have turned to Gold Exchange-Traded Funds (ETFs) to gain exposure to the precious metal.ETMutualFunds looked at the performance of gold ETFs in the last 10 calendar years including 2025 so far and found that these ETFs have offered an average return of up to 26.24%.
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In this calendar year, there were around 10 gold ETFs which have offered an average return of 10.49% with LIC MF Gold ETF being the topper. The scheme gave 10.80% in the mentioned calendar year. Axis Gold ETF, the lowest performer in 2016, gave 9.88% return.
In the calendar year 2017, gold ETFs have offered an average return of 2.73%, the lowest positive return in the last 10 calendar years. HDFC Gold ETF, the topper in the said period, gave a return of 3.97%, followed by LIC MF Gold ETF which gave 3.61% return.
Axis Gold ETF continued to stand at the last position in the calendar year 2017 and gave the lowest return of 0.56%.In the calendar year 2018, gold commodity based ETFs gave an average return of 7.03% with LIC MF Gold ETF being the topper. The scheme delivered a return of 7.55% in the same period.UTI Gold ETF delivered a return of 7.21% in the same calendar year and SBI Gold ETF gave the lowest return of 6.77% in 2017.
Also Read | Gold price was just Rs 30,000 in 2014 on Akshaya Tritiya, surges by 218% in 2025 In the calendar year 2019, these ETFs based on gold gave an average return of 22.97% where Axis Gold ETF offered the highest return of 23.40%.Invesco India Gold ETF delivered a return of 23.21% in the same time period. HDFC Gold ETF offered the lowest return of 22.19% in the said time period.In the covid times, the gold commodity based ETFs gave an average return of 26.24%, the highest average return in the last 10 calendar years. There were 10 schemes and all delivered over 25% return.Invesco India Gold ETF offered the highest return of 26.69% in 2019 followed by HDFC Gold ETF which gave 26.59% return in the same period. LIC MF Gold ETF, the topper in the last calendar years, gave the lowest return of 25.58% in the same period.In the calendar year 2021, all 10 schemes gave negative returns and delivered an average return of 4.46% in the same period. This calendar year marks the only year where gold ETFs have offered negative returns in a tenure of the last 10 years.UTI Gold ETF lost the most at around 5.08%, followed by Nippon India ETF Gold BeES, the oldest gold ETF. The scheme lost 4.78% in 2021.LIC MF Gold ETF lost the lowest of around 3.94% in 2021.
Also Read | 19 gold ETFs, one glittering choice: Here's how to pick the best one In the calendar year 2022, the gold ETFs gave an average return of 14.11%. There were 10 schemes in the category in the said period and LIC MF Gold ETF offered the highest return of 14.59% in the same period. UTI Gold ETF offered the lowest return of 13.82% in the calendar year 2022.Gold ETFs in the calendar year 2023, gave an average return of 10.90%. Out of 14 schemes in the category in the mentioned calendar year, LIC MF Gold ETF gave the highest return of 13.82%, followed by UTI Gold ETF which gave 13.50% return in the same period.Three schemes gave single-digit returns. DSP Gold ETF, Edelweiss Gold ETF, and Baroda BNP Paribas Gold ETF gave 4.71%, 3.85%, and 3.04% returns respectively.Around 17 gold ETFs in the calendar year 2024 gave an average return of 18.47%. Out of 17 funds, only one gave a negative return in the same period.Zerodha Gold ETF gave a return of 21.37% in the calendar year 2024, followed by Tata Gold ETF which gave a return of 21.23%. Axis Gold ETF gave the lowest positive return of 19.22% in the said period. Groww Gold ETF lost 2.53% in 2024.In the current calendar year so far, gold ETFs have offered an average return of 25.07%. There are around 17 schemes in the category. UTI Gold ETF has offered the highest return of 26%, followed by Invesco India Gold ETF which gave 25.27% return. Tata Gold ETF offered the lowest return of 23.99% in the current calendar year so far.
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If after looking at the past performance, you are willing to make an investment, Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai recommends that one can look to an allocation of 5% to 10% in commodities, and if it is not there yet, additional exposure should only be taken through a SIP strategy. 'As an alternative, one can look at a combined instrument like Gold and Silver as well through a SIP,' he added.
According to a report by Ventura, 'we see considerable upside potential should geopolitical tensions escalate or global economic conditions deteriorate. US Federal rate cut actions could also be the upside trigger. Gold prices could rally significantly, possibly reaching $3,600–$3,700 per ounce, or Rs 1,01,000 – Rs 1,04,000 per 10 grams by next Akshaya Tritiya, which falls on April 19,2026. These projections reflect gold's enduring appeal as a safe haven in times of heightened uncertainty.' We considered all gold ETFs across different calendar years. We calculated the calendar year returns from January 1 to December 31 for each year.Note, the above exercise is not a recommendation. The exercise was done to evaluate the performance of gold ETFs in the last 10 calendar years.One should always make an investment decision based on investment horizon, risk appetite, and goals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)