Investors flocking to Gold ETFs amid escalating geopolitical tensions and surge in gold prices: ICRA Analytics

Amid escalating geopolitical tensions and the surge in gold prices, investors are increasingly flocking to gold ETFs (exchange-traded funds). Inflows into gold ETFs has surged by 98.54% on a year-on-year basis at Rs 1979.84 crore in February 2025, as compared with Rs 997.21 crore last year.

The net AUM (assets under management) under gold ETF nearly doubled in the last one year to touch Rs 55,677.24 crore in February 2025, as compared with Rs 28,529.88 crore last year, according to a release by ICRA Analytics.

Investors favour investing in Gold ETFs due to liquidity, transparency, cost-effectiveness, and ease of trading compared to physical gold. Gold is considered to be a “safe haven” and amid the escalating geopolitical tensions investors prefer parking their funds in Gold ETFs as compared to investing in physical gold as there is no hassle of storing it. Also, there are concerns of purity and theft while investing in physical gold, which is not the case with Gold ETFs.

Here are the top five performing funds under Gold ETFs and the 1-year, 3-year and 5-year returns generated by them:

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