Gold ETF UK: Best Funds Compared (iShares, WisdomTree, Invesco)
Looking for the best gold ETF in the UK? We compare the top 5 gold ETFs and ETCs available to UK investors — including iShares Physical Gold (SGLN), WisdomTree (PHAU), and Invesco (SGLD) — covering fees, tracking error, platform availability, and tax treatment in your ISA, SIPP, or GIA.
Capital at risk. Not financial advice or a personal recommendation.
What Is a Gold ETF?
A gold ETF (Exchange-Traded Fund) is an investment product that tracks the price of gold and trades on a stock exchange like a regular share. Most gold ETFs available to UK investors are backed by physical gold bars held in secure London vaults, meaning your investment represents fractional ownership of real gold.
For UK investors, gold ETFs provide the easiest and cheapest way to add gold exposure to a portfolio — with annual costs as low as 0.11%, no storage worries, and the ability to hold them tax-free in an ISA. You can check the current UK gold price to see what your investment tracks.
- • Low costs (0.11–0.39% annual fees)
- • Buy and sell like shares — instant liquidity
- • No storage or insurance needed
- • Eligible for ISA and SIPP (tax-free gains)
- • Start from £1 on some platforms
- • Backed by physical gold in London vaults
- • No physical gold in your possession
- • Platform fees add to total cost
- • Currency risk on USD-denominated products
- • Counterparty risk (issuer, custodian)
- • Not CGT-exempt like UK gold coins
- • ETC structure — technically debt, not fund shares
Gold ETF vs Gold ETC UK: What's the Difference?
You'll often see "gold ETF" and "gold ETC" used interchangeably, but there is an important legal distinction in the UK. Understanding this helps you know exactly what you own.
| Feature | Gold ETF | Gold ETC |
|---|---|---|
| Legal structure | Fund (UCITS-regulated) | Debt security (note) |
| Can track a single commodity? | No — UCITS requires diversification | Yes |
| What you own | Shares in a fund | Debt instrument backed by gold |
| Physical gold backing | Via fund assets | Yes — allocated gold bars |
| ISA / SIPP eligible | Yes | Yes |
| Trades on LSE | Yes | Yes |
| UK examples | None for single-commodity gold | SGLN, SGLD, PHAU, RMAU, XGLD |
Why this matters
Under EU-derived UCITS regulations (still applicable in the UK), a fund cannot hold a single asset. Since gold is one commodity, all UK-listed products that track gold alone are technically ETCs, not ETFs. As an ETC holder you own a debt security backed by gold, not shares in a fund. In practice, this makes little difference to investors: ETCs trade on the London Stock Exchange, are eligible for ISAs and SIPPs, and closely track gold prices. We use "gold ETF" throughout this guide because that's the term most people search for.
Best Gold ETFs for UK Investors (2026 Comparison)
Below we compare the five most popular gold ETCs available on UK platforms. All are physically backed by gold bars and listed on the London Stock Exchange.
| Fund | Ticker | TER | AUM | Tracking Error | Currency | HL | AJ Bell | ii |
|---|---|---|---|---|---|---|---|---|
| iShares Physical Gold ETCTop Pick | SGLN | 0.12% | £15bn+ | ~0.05% | GBP | |||
| Invesco Physical Gold ETCTop Pick | SGLD | 0.12% | £12bn+ | ~0.07% | USD | |||
| WisdomTree Physical Gold | PHAU | 0.39% | £4bn+ | ~0.10% | USD | |||
| Royal Mint Responsibly Sourced Physical Gold ETC | RMAU | 0.22% | £500m+ | ~0.12% | GBP | |||
| Xtrackers Physical Gold ETC | XGLD | 0.11% | £2.5bn+ | ~0.06% | USD |
TER = Total Expense Ratio (annual fund charge). Tracking error is annualised and indicative — verify against fund factsheets. AUM and platform availability as of early 2026.
Ticker: SGLN · ISIN: IE00B4ND3602
0.12%
Annual fee (TER)
Fund Size
£15bn+
Backing
Physical
Currency
GBP
Tracking Error
~0.05%
ISA Eligible
Yes
Pros:
- • Joint-lowest cost (0.12% TER)
- • Largest gold ETC on LSE
- • GBP-denominated — no currency risk
- • Available on all major UK platforms
Cons:
- • ETC structure, not a UCITS fund
- • No income distributions (gold pays no yield)
Ticker: SGLD · ISIN: IE00B579F325
0.12%
Annual fee (TER)
Fund Size
£12bn+
Backing
Physical
Currency
USD
Tracking Error
~0.07%
ISA Eligible
Yes
Pros:
- • Joint-lowest cost (0.12% TER)
- • Excellent liquidity
- • Well-established track record
Cons:
- • USD-denominated — GBP/USD currency risk
- • Not on Vanguard platform
Ticker: PHAU · ISIN: JE00B1VS3770
0.39%
Annual fee (TER)
Fund Size
£4bn+
Backing
Physical
Currency
USD
Tracking Error
~0.10%
ISA Eligible
Yes
Pros:
- • Physically backed, long track record
- • Wide platform availability
Cons:
- • Higher TER than iShares and Invesco
- • USD-denominated — currency risk
Ticker: RMAU · ISIN: XS2115336336
0.22%
Annual fee (TER)
Fund Size
£500m+
Backing
Physical
Currency
GBP
Tracking Error
~0.12%
ISA Eligible
Yes
Pros:
- • Stored at the Royal Mint, Wales
- • ESG / responsible sourcing focus
- • GBP-denominated
Cons:
- • Smaller fund — lower liquidity
- • Higher TER than top two
Ticker: XGLD · ISIN: DE000A2T0VU5
0.11%
Annual fee (TER)
Fund Size
£2.5bn+
Backing
Physical
Currency
USD
Tracking Error
~0.06%
ISA Eligible
Yes
Pros:
- • Lowest TER of any major gold ETC (0.11%)
- • Backed by Deutsche Bank / DWS
- • Good liquidity
Cons:
- • USD-denominated — currency risk
- • Less well-known in UK retail market
Our Recommendation
For most UK investors, iShares Physical Gold ETC (SGLN) is the best choice: it matches the lowest TER (0.12%), is GBP-denominated (eliminating currency risk), and is available on every major UK platform. If you want the absolute lowest fee and don't mind USD exposure, Xtrackers (XGLD) at 0.11% is worth considering. For ESG-conscious investors, the Royal Mint (RMAU) offers responsibly sourced gold stored in Wales.
How to Buy Gold ETFs in the UK
Buying a gold ETC takes minutes on any major UK investment platform. Below are step-by-step instructions for the three most popular brokers.
- 1Log in and go to Invest > Shares > Search. Search for "SGLN" or "iShares Physical Gold".
- 2Select the fund and click "Deal". Choose which account to buy in (ISA, SIPP, or Fund and Share Account).
- 3Enter the number of shares or the £ value you want to invest. Review and confirm the order. HL charges £11.95 per deal.
- 1Log in to your AJ Bell account. Navigate to Investments > Buy/Sell. Search "SGLN" or "SGLD".
- 2Click "Buy" and select your account type (ISA, SIPP, or Dealing Account).
- 3Enter £ amount or number of shares. AJ Bell charges £5 per online deal — significantly cheaper than HL for regular traders.
- 1Log in and use the search bar to find "SGLN", "PHAU", or any ticker from the table above.
- 2Click "Buy". Choose your ISA, SIPP, or Trading Account. ii includes a free trade per month on some plans.
- 3Enter the amount, review, and confirm. Additional trades cost £3.99 each. ii's flat monthly fee (£4.99) suits portfolios over £50,000.
Best Platforms to Buy Gold ETFs UK
| Platform | Platform Fee | Dealing Fee | ISA | SIPP | 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, low-cost investors | ||
| Trading 212 | Free | Free | — | £1 | Small portfolios, beginners |
Which platform is cheapest?
For a £10,000 portfolio: Trading 212 (free) is cheapest for small accounts. For ISA + SIPP flexibility, AJ Bell (0.25% + £5 per trade) offers the best balance of cost and features. For large portfolios (£50k+), Interactive Investor's flat monthly fee works out cheapest.
Gold ETF Tax UK: ISA vs SIPP vs GIA
How you hold your gold ETF makes a huge difference to your after-tax returns. Here's how the three main UK account types compare.
- No Capital Gains Tax on profits
- No income tax on distributions
- £20,000 annual allowance (2025/26)
- Withdraw anytime, no penalty
Best for: Most investors
- Tax relief on contributions (20–45%)
- No CGT or income tax inside SIPP
- £60,000 annual contribution limit
- Locked until age 57 (from 2028)
Best for: Long-term / retirement allocation
- CGT on gains above £3,000 allowance
- Basic rate 10%, higher rate 20% CGT
- No contribution or withdrawal limits
- Must report gains on self-assessment
Best for: After ISA/SIPP limits are used
Tax-saving example
If you invest £10,000 in a gold ETC and the gold price rises 50% over five years, your £5,000 gain is completely tax-free inside an ISA. In a GIA, after the £3,000 annual CGT allowance, you'd owe £400 (basic rate) or £400–£1,000 depending on your tax band. Over a lifetime of investing, the ISA advantage compounds significantly. If you have unused ISA allowance, always use your ISA first.
Physical Gold vs Gold ETF: Pros and Cons
Should you buy bars and coins, or invest via a gold ETF? Both give you gold exposure, but the practicalities differ significantly. For a broader comparison of precious metals, see our gold vs silver investment guide.
| Factor | Physical Gold | Gold ETF/ETC |
|---|---|---|
| Annual costs | Storage + insurance (~0.5–1.5%/yr) | 0.11–0.39% TER + platform fee |
| Buy/sell spread | 3–8% typical for coins/bars | ~0.1% (tight bid-ask on LSE) |
| Liquidity | Days to sell (find a buyer, ship) | Instant — sell during market hours |
| CGT exemption | UK coins (Britannias, Sovereigns) are CGT-free | Only tax-free inside ISA or SIPP |
| VAT | Investment gold is VAT-free | No VAT |
| ISA eligible | No | Yes |
| SIPP eligible | No | Yes |
| Counterparty risk | None — you hold the gold | Issuer + custodian (mitigated by physical backing) |
| Minimum investment | ~£100+ for smallest coins | From £1 (Trading 212) |
The bottom line
Gold ETFs win on cost, convenience, and tax-efficiency (via ISA). Physical gold wins on direct ownership, CGT-exempt UK coins, and zero counterparty risk. Many investors hold both: ETFs in their ISA for the bulk of their allocation, and a small amount of physical gold (Britannias or Sovereigns) for ultimate security. Check the current gold price to calculate what you'd get either way.
Gold ETF UK: Frequently Asked Questions
The best gold ETFs for UK investors are iShares Physical Gold ETC (SGLN) and Invesco Physical Gold ETC (SGLD), both charging just 0.12% annually. iShares (SGLN) is the top pick for its GBP denomination, high liquidity, and availability on all major UK platforms including Hargreaves Lansdown, AJ Bell, and Interactive Investor.
In the UK, most products marketed as 'gold ETFs' are technically ETCs (Exchange-Traded Commodities). Under EU-derived UCITS rules, a true ETF must hold diversified assets — a single commodity like gold does not qualify. Gold ETCs are structured as debt securities backed by physical gold, not as fund shares. For investors, the practical difference is minimal: both trade on the London Stock Exchange, are eligible for ISAs and SIPPs, and track gold prices closely.
Yes. Most gold ETCs (including iShares SGLN, Invesco SGLD, and WisdomTree PHAU) are eligible for Stocks & Shares ISAs, making all gains completely tax-free. This is one of the most tax-efficient ways to invest in gold in the UK. Check your ISA provider lists the specific product before investing.
Yes. Gold ETCs can be held in a Self-Invested Personal Pension (SIPP). You receive tax relief on contributions (20–45% depending on your tax band) and pay no CGT or income tax within the SIPP. When you draw the pension, 25% is tax-free and the remainder is taxed as income. SIPPs suit long-term gold allocations as part of a retirement portfolio.
Total costs include the fund's annual charge (TER of 0.11–0.39%), platform fees (0–0.45% annually), and dealing charges (£0–12 per trade). For a £10,000 investment in iShares Physical Gold (SGLN) on AJ Bell, total annual costs would be approximately 0.37% — around £37 per year.
All five gold ETCs recommended in this guide — iShares (SGLN), Invesco (SGLD), WisdomTree (PHAU), Royal Mint (RMAU), and Xtrackers (XGLD) — are 100% backed by physical gold bars stored in secure London vaults. Each unit represents a fractional ownership of allocated gold. Synthetic products that use derivatives instead do exist but are not covered here.
iShares Physical Gold ETC (SGLN) is widely regarded as one of the best gold investments for UK investors. It charges just 0.12% annually, manages over £15 billion in assets, is denominated in GBP (reducing currency risk), and is available on every major UK platform. It is backed by physical gold stored by JPMorgan in London. It is our top-rated gold ETC for most UK investors.
Gold ETFs suit most investors: they are cheaper (no storage or insurance), more liquid (sell instantly during market hours), and can be held tax-free in an ISA. Physical gold suits those who want direct ownership, CGT exemption on UK legal-tender coins (Britannias, Sovereigns), or a hedge against systemic financial risk. Many investors hold both for diversification.
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