Gold ETF UK: Complete Guide for 2025
Gold ETFs offer UK investors an easy, low-cost way to gain exposure to gold prices without the hassle of buying and storing physical gold. This guide compares the best gold ETFs, explains costs, and shows you how to invest tax-efficiently through your ISA.
What is a Gold ETF?
A Gold ETF (Exchange-Traded Fund) is an investment fund that tracks the price of gold and trades on a stock exchange like a regular share. Most gold ETFs are backed by physical gold bars stored in secure vaults, meaning your investment represents actual gold ownership.
- • Low costs (0.12-0.39% annual fees)
- • Easy to buy/sell like shares
- • No storage or insurance worries
- • Can hold in ISA (tax-free gains)
- • Start from just £1 on some platforms
- • High liquidity - sell anytime
- • No physical gold possession
- • Platform fees add to costs
- • Currency risk (USD funds)
- • Counterparty risk (fund provider)
- • Not CGT-exempt like UK coins
- • Relies on third-party custody
Best Gold ETFs for UK Investors (2025)
Ticker: SGLN
0.12%
Annual fee (TER)
Fund Size
£15bn+
Backing
Physical
Currency
GBP
ISA Eligible
Yes
Pros:
- • Lowest cost
- • Highly liquid
- • LSE listed
- • GBP hedged option
Cons:
- • ETC structure (not UCITS)
Ticker: SGLD
0.12%
Annual fee (TER)
Fund Size
£12bn+
Backing
Physical
Currency
USD
ISA Eligible
Yes
Pros:
- • Low cost
- • Large fund
- • Well established
Cons:
- • USD denominated
- • Currency risk
Ticker: PHAU
0.39%
Annual fee (TER)
Fund Size
£4bn+
Backing
Physical
Currency
USD
ISA Eligible
Yes
Pros:
- • Physically backed
- • Good track record
Cons:
- • Higher fees
- • USD denominated
Ticker: RMAU
0.22%
Annual fee (TER)
Fund Size
£500m+
Backing
Physical
Currency
GBP
ISA Eligible
Yes
Pros:
- • UK-based storage
- • ESG focused
- • GBP denominated
Cons:
- • Smaller fund
- • Slightly higher fees
Our Recommendation
For most UK investors, iShares Physical Gold ETC (SGLN) or Invesco Physical Gold ETC (SGLD) are the best choices due to their low 0.12% annual fees, high liquidity, and physical gold backing. If you prefer GBP denomination, choose iShares (SGLN).
How to Buy Gold ETFs in the UK
Choose a Platform
Select a stockbroker or investment platform that offers gold ETFs. Most major UK platforms support them. Consider fees, minimum investment, and ISA availability.
Open an Account (ISA Recommended)
Open a Stocks & Shares ISA for tax-free gains, or a General Investment Account if you've used your ISA allowance. Complete identity verification.
Search for Your Chosen ETF
Search by name (e.g., "iShares Physical Gold") or ticker symbol (e.g., "SGLN"). Verify you're selecting the correct fund.
Place Your Order
Enter the amount you want to invest (in £) or number of shares. Review the order and confirm. Most platforms offer instant execution during market hours.
Best Platforms to Buy Gold ETFs UK
| Platform | Platform Fee | Trading Fee | Min Investment | Best For |
|---|---|---|---|---|
| Hargreaves Lansdown | 0.45% | £11.95 | £25/month | Beginners, service quality |
| AJ Bell | 0.25% | £5 | £25 lump sum | Cost-conscious investors |
| Interactive Investor | £4.99/month | £3.99 | £25 | Larger portfolios (£50k+) |
| Vanguard | 0.15% | Free | £500 or £100/month | Long-term investors |
| Trading 212 | Free | Free | £1 | Small portfolios, beginners |
Gold ETF Tax in the UK
- No Capital Gains Tax on profits
- No Income Tax on any distributions
- £20,000 annual ISA allowance (2024/25)
- Best option for most UK investors
- CGT applies on profits above £3,000 allowance
- Basic rate: 10% CGT, Higher rate: 20% CGT
- Must report gains on tax return
- Consider using annual CGT allowance strategically
ISA vs Physical Gold Coins
Gold ETFs in an ISA offer tax-free gains like CGT-exempt UK coins (Britannias, Sovereigns), but with lower costs and easier buying/selling. Physical coins require storage and insurance. For most investors focused on gold price exposure, a gold ETF in an ISA is the most practical choice.
Gold ETF UK FAQs
The best gold ETFs for UK investors include iShares Physical Gold ETC (SGLN) with 0.12% fees, Invesco Physical Gold ETC (SGLD) at 0.12%, and WisdomTree Physical Gold (PHAU) at 0.39%. iShares is often recommended for its low cost and high liquidity.
Yes, most gold ETFs can be held in a Stocks & Shares ISA, making gains completely tax-free. This is one of the most tax-efficient ways to invest in gold in the UK. Check your ISA provider supports the specific ETF you want to buy.
Gold ETF costs include: the fund's annual charge (0.12-0.39% TER), platform fees (0-0.45% annually), and trading costs (£0-12 per trade). Total annual cost is typically 0.12-0.85% of your investment value.
Most popular gold ETFs like iShares Physical Gold and Invesco Physical Gold are 100% backed by physical gold bars stored in secure vaults. Each share represents a fraction of actual gold. Synthetic ETFs use derivatives instead - check the fund's structure before investing.