What is the best gold ETF in Canada?

iShares Gold Bullion ETF (CGL) is the best overall gold ETF in Canada for direct physical gold exposure with a 0.55% MER. For lower cost, SPDR Gold MiniShares (GLDM) on US exchanges offers a 0.10% MER. For Canadian gold miners, iShares S&P/TSX Global Gold Index ETF (XGD) provides diversified exposure at 0.61% MER.

Should I invest in gold ETFs in Canada?

Gold can serve as a portfolio hedge against inflation and market volatility. Most financial advisors recommend allocating 5–10% of your portfolio to gold. Gold ETFs are more practical than physical gold — they are liquid, have low storage costs, and can be held in RRSP, TFSA, and FHSA accounts. Gold does not pay dividends, which is a drawback.

Can you hold gold ETFs in a TFSA or RRSP?

Yes. Canadian-listed gold ETFs (CGL, MNT, XGD) and US-listed gold ETFs (GLD, IAU, GLDM) can be held in a TFSA, RRSP, FHSA, or RESP. However, US-listed ETFs in a TFSA are subject to 15% US dividend withholding tax (not applicable to physical gold ETFs since they pay no dividends). Canadian-listed ETFs avoid currency conversion fees.

Is physical gold or a gold ETF better for Canadians?

Gold ETFs are more practical and cost-effective. Physical gold requires secure storage ($100–$300/year for a safe deposit box), insurance, and has wider buy/sell spreads (3–5%). A gold ETF like CGL charges only 0.55% annually, is instantly liquid, and can be held inside registered accounts for tax-free growth.

How much gold should I hold in my portfolio?

Most advisors recommend 5–10% of your total portfolio in gold as a hedge against inflation and stock market crashes. Gold has zero correlation with equities, so even a small allocation reduces portfolio volatility. Over-allocating to gold (15%+) can drag long-term returns since gold does not generate income or dividends.

Best Gold ETFs in Canada 2026: CGL, XGD, PHYS

If you are deciding where gold belongs inside a diversified portfolio, start with our ETFs and index funds hub.

Best Gold ETFs on the TSX

Physical Gold ETFs

ETF	Ticker	MER	Type	Currency	AUM
iShares Gold Bullion ETF	CGL / CGL.C	0.55%	Physical gold bullion	CAD (hedged) / CAD (unhedged)	$1.2B+
Sprott Physical Gold Trust	PHYS	0.40%	Physical gold (held in Royal Canadian Mint)	USD (TSX-listed)	$6B+
Purpose Gold Bullion Fund	KILO	0.23%	Physical gold bullion	CAD	$200M+
CI Gold Bullion Fund	VALT	0.16%	Physical gold bullion	CAD	$500M+
Royal Canadian Mint Gold ETR	MNT	0.35%	Gold receipts (backed by Mint)	CAD	$500M+

Gold Mining ETFs

ETF	Ticker	MER	Type	Holdings	Yield
iShares S&P/TSX Global Gold Index	XGD	0.61%	Global gold miners	Barrick, Franco-Nevada, Agnico Eagle	~1%
BMO Equal Weight Gold Index	ZGD	0.61%	Canadian gold miners (equal weight)	12–15 miners	~1%
VanEck Gold Miners (US-listed)	GDX	0.51%	Global gold miners	50+ miners	~1.5%
VanEck Junior Gold Miners (US-listed)	GDXJ	0.52%	Small-cap gold miners	90+ junior miners	~0.5%
Horizons Gold Yield ETF	HGY	0.65%	Gold exposure + covered calls	Gold + options	~5%

Physical Gold ETF vs Gold Miners

If you want a broader real-assets sleeve rather than a pure gold sleeve, compare this page with best commodity ETFs in Canada.

Factor	Physical Gold ETF (CGL)	Gold Mining ETF (XGD)
Tracks	Gold spot price directly	Performance of gold mining stocks
Volatility	Moderate	High (2–3x gold price moves)
Dividends	None	~1% yield
Upside potential	Matches gold price	Amplified (operating leverage)
Downside risk	Matches gold price	Amplified (company-specific risk)
MER	0.16–0.55%	0.51–0.61%
Best for	Hedging, stability	Growth potential, higher risk

Gold Allocation Strategies

Investor Type	Recommended Gold Allocation	Preferred ETF
Conservative (capital preservation)	10–15%	CGL.C or PHYS (physical)
Balanced (moderate growth)	5–10%	CGL + small XGD position
Growth-oriented	0–5%	XGD (miners for leverage)
Income-focused	0–5%	HGY (covered call yield)

That sizing decision should fit around your broader stock/bond mix, which we cover in asset allocation by age.

Gold ETF Returns (Historical)

Period	Gold Spot Price	CGL (Physical)	XGD (Miners)
1 year	~15%	~14%	~20%
3 years (annualized)	~12%	~11%	~15%
5 years (annualized)	~10%	~9%	~8%
10 years (annualized)	~8%	~7%	~4%

Returns are approximate and vary by time period. Gold miners are more volatile but can outperform during gold bull markets.

Tax Treatment in Registered Accounts

Account	Physical Gold ETF (CGL)	Gold Mining ETF (XGD)	US-Listed Gold ETF (GLD)
RRSP	No tax on gains or distributions	No tax	No US withholding (treaty exempt)
TFSA	No tax	No tax	15% US withholding on dividends (N/A for physical gold)
Non-registered	Capital gains on sale (50% inclusion)	Capital gains + dividends taxed	Capital gains + FX gains/losses
FHSA	No tax	No tax	Same as TFSA

If you choose the US-listed versions, you will usually want Norbert’s Gambit to reduce conversion costs.

How to Buy Gold ETFs

Step	Details
1. Open a brokerage account	Wealthsimple, Questrade, TD Direct, etc.
2. Choose your gold ETF	Physical (CGL, PHYS) or miners (XGD)
3. Decide on account type	TFSA, RRSP, or non-registered
4. Place buy order	Market or limit order for the number of shares/units
5. Monitor and rebalance	Rebalance annually to maintain target allocation

Gold in a portfolio: how much is appropriate?

Financial planning research suggests gold should represent 5–10% of a portfolio as a diversification tool and inflation hedge. Beyond 10%, gold’s lack of cash flow (no dividends, no earnings) becomes a significant drag versus equity.

Portfolio allocation	Historical role
0% gold	Highest long-term returns; highest volatility
5% gold	Modest diversification benefit; reduces drawdowns slightly
10% gold	Meaningful hedge against systemic risk and currency debasement
20%+ gold	Significantly reduces long-run expected returns

For most Canadian investors, gold is optional. A globally diversified equity ETF already includes commodity-related stocks (energy, mining). Adding a gold ETF specifically is appropriate for investors who:

Are concerned about currency debasement or severe inflation
Want an asset that typically rises when stocks fall sharply (flight to safety)
Hold a significant portion of wealth in Canadian dollars and want non-correlated exposure

Physical gold ETF vs gold miner comparison

Characteristic	Physical gold ETF (CGL, KILO)	Gold miner ETF (XGD, GDX)
Returns vs gold price	1:1 — tracks gold price directly	2:1 to 3:1 leverage vs gold price (amplified moves)
Volatility	Moderate	High
Downside in gold bear market	Tracks gold lower ~1:1	Falls 2–3× more than gold
Dividends	None (gold has no yield)	Small dividends from miner profits
Best for	Hedging, store of value	Speculative gold leverage