Best Gold ETFs with Low Tracking Error in April 2026: UTI, SBI, Kotak & More

Gold ETFs with low tracking error are considered more efficient as they closely follow the actual price of gold, minimizing deviation and ensuring better return accuracy.

As of April 2026, several gold ETFs in India stand out for their low tracking error and consistent performance, making them attractive options for investors seeking reliable gold exposure.

Gold ETFs with Low Tracking Error – April 2026

1. HDFC Gold ETF

HDFC Gold ETF is an exchange-traded fund that aims to replicate the performance of gold. It provides investors with a convenient way to invest in gold digitally, eliminating concerns related to storage and purity.

Key Metrics:

• 3-Year CAGR: 40.69%
• 5-Year CAGR: 26.85%

2. SBI Gold ETF

SBI Gold ETF primarily invests in physical gold and related instruments. Its objective is to closely track domestic gold prices and deliver returns aligned with gold’s market movements.

Key Metrics:

• 3-Year CAGR: 40.2%
• 5-Year CAGR: 26.8%

3. Kotak Gold ETF

Kotak Gold ETF is an open-ended ETF that invests in physical gold, aiming to mirror the domestic spot price of gold with high accuracy.

Key Metrics:

• 3-Year CAGR: 34.67%
• 5-Year CAGR: 26.58%

4. Quantum Gold Fund

Quantum Gold Fund offers a cost-effective way to invest in gold by holding physical gold. It eliminates additional costs like making charges and storage hassles associated with physical gold investments.

Key Metrics:

• 3-Year CAGR: 33.47%
• 5-Year CAGR: 25.98%

5. UTI Gold ETF

UTI Gold ETF is an open-ended ETF that seeks to replicate gold’s performance. It aims to generate returns, before expenses, that closely match the price movement of gold.

Key Metrics:

• 3-Year CAGR: 41.10%
• 5-Year CAGR: 27.17%

How to Choose the Right Gold ETF

When selecting a gold ETF—especially one with low tracking error—investors should look beyond just returns and consider a few key factors:

Expense Ratio

Opt for funds with lower expense ratios, as higher costs can gradually reduce returns and increase tracking deviation over time.

Liquidity

ETFs with higher trading volumes tend to have tighter bid-ask spreads, making it easier to buy and sell units without significant price differences.

Assets Under Management (AUM)

Larger funds usually benefit from better operational efficiency and cost management, which can help improve overall performance and reduce tracking errors.

Historical Tracking Difference

Analyzing a fund’s consistency over different time periods helps in understanding how accurately it has tracked gold prices in the past.

Disclaimer – The fund’s investment objective, asset allocation, and risk profile are as described in the scheme offer documents, and investor shall read carefully before investing. All information has been obtained from sources believed to be reliable; however, no guarantee, warranty, or representation is made regarding its accuracy, completeness, or adequacy. Portfolio construction, execution strategies, and the use of permitted instruments are based on prevailing market conditions and subject to SEBI Mutual Funds regulations. Any income distributions are subject to applicable tax laws, which may change from time to time. Investors should consult their financial and tax advisors regarding applicable laws, investment horizon, and suitability of the Scheme.