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.
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.
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, XGDU |
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.
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 | Trading currency | HL | AJ Bell | ii |
|---|---|---|---|---|---|---|---|---|
| iShares Physical Gold ETCTop Pick | SGLN | 0.12% | $40.8bn (31 Aug 2026) | ~0.05% | GBP (SGLN) / USD (IGLN) | |||
| Invesco Physical Gold ETCTop Pick | SGLD | 0.12% | $31.2bn (31 Aug 2026) | ~0.07% | USD (SGLD) / GBP (SGLP) | |||
| WisdomTree Physical Gold | PHAU | 0.39% | $7.0bn (29 Sep 2026) | ~0.10% | USD (PHAU) / GBP (PHGP) | |||
| Royal Mint Responsibly Sourced Physical Gold ETC | RMAU | 0.25% | $1.7bn (31 Aug 2026) | ~0.12% | USD (RMAU) / GBP (RMAP) | |||
| Xtrackers IE Physical Gold ETC | XGDU | 0.11% | Not stated by issuer | ~0.06% | USD |
TER = Total Expense Ratio (annual fund charge). Tracking error is annualised and indicative. TER, fund size and trading lines checked against each issuer's factsheet on 1 October 2026 (fund size at the date shown). None of the five is currency-hedged: whichever line you buy, its value follows the gold price in pounds, which moves with both the dollar gold price and the exchange rate. All five track the same gold price, so their returns differ mainly by fees: in the year to 31 August 2026 the LBMA Gold Price rose 33.1% in US dollars (iShares and Invesco factsheets).
Ticker: SGLN · ISIN: IE00B4ND3602
0.12%
Annual fee (TER)
Fund Size
$40.8bn (31 Aug 2026)
Backing
Physical
Currency
GBP (SGLN) / USD (IGLN)
Tracking Error
~0.05%
ISA Eligible
Yes
Pros:
Cons:
Ticker: SGLD · ISIN: IE00B579F325
0.12%
Annual fee (TER)
Fund Size
$31.2bn (31 Aug 2026)
Backing
Physical
Currency
USD (SGLD) / GBP (SGLP)
Tracking Error
~0.07%
ISA Eligible
Yes
Pros:
Cons:
Ticker: PHAU · ISIN: JE00B1VS3770
0.39%
Annual fee (TER)
Fund Size
$7.0bn (29 Sep 2026)
Backing
Physical
Currency
USD (PHAU) / GBP (PHGP)
Tracking Error
~0.10%
ISA Eligible
Yes
Pros:
Cons:
Ticker: RMAU · ISIN: XS2115336336
0.25%
Annual fee (TER)
Fund Size
$1.7bn (31 Aug 2026)
Backing
Physical
Currency
USD (RMAU) / GBP (RMAP)
Tracking Error
~0.12%
ISA Eligible
Yes
Pros:
Cons:
Ticker: XGDU · ISIN: DE000A2T0VU5
0.11%
Annual fee (TER)
Fund Size
Not stated by issuer
Backing
Physical
Currency
USD
Tracking Error
~0.06%
ISA Eligible
Yes
Pros:
Cons:
For most UK investors, iShares Physical Gold ETC (SGLN) is the best choice: it matches the lowest TER (0.12%), trades in pounds (no currency conversion charge), and is available on the major UK platforms. If you want the lowest fee and don't mind buying a dollar-traded line, Xtrackers (XGDU) at 0.11% is worth considering. For ESG-conscious investors, the Royal Mint (RMAU) offers responsibly sourced gold stored in Wales.
For a single-product deep-dive on the top pick, see our full iShares Physical Gold ETC (SGLN) review.
Buying a gold ETC takes minutes on any major UK investment platform. Below are step-by-step instructions for the three most popular brokers.
| Platform | Platform Fee | Dealing Fee | ISA | SIPP | Min Investment | Best For |
|---|---|---|---|---|---|---|
| Hargreaves Lansdown | 0.35% (max £150/yr) | £6.95 | £100 or £25/month | Beginners, service quality | ||
| AJ Bell | 0.25% (max £42/yr in an ISA) | £5 | £250 or £25/month | Cost-conscious investors | ||
| Interactive Investor | From £5.99/month | £3.99 | No minimum | Flat fee across ISA and SIPP | ||
| Trading 212 | Free (0.15% FX fee on USD lines) | Free | £1 | Small portfolios, beginners |
For a £10,000 gold ETC holding in an ISA: Trading 212 charges no account or dealing fee (0.15% currency fee if you buy a dollar line). AJ Bell charges 0.25% capped at £3.50 a month (£25 a year here, never more than £42) plus £5 a deal. Hargreaves Lansdown charges 0.35% capped at £150 a year plus £6.95 a deal. interactive investor charges £5.99 a month on its Core plan plus £3.99 a trade, which costs more than AJ Bell's capped fee if you hold only ETCs. Vanguard Investor sells only Vanguard's own funds and ETFs, so you cannot buy a gold ETC there. Charges checked on each provider's website on 1 October 2026.
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.
Best for: Most investors
Best for: Long-term / retirement allocation
Best for: After ISA/SIPP limits are used
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 £360 at the 18% rate or £480 at the 24% rate on the remaining £2,000. Over a lifetime of investing, the ISA advantage compounds significantly. If you have unused ISA allowance, always use your ISA first.
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) |
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.
BullionVault lets you buy allocated, vaulted gold from £1 — 0.5% commission, 0.12%/yr storage. Lower ongoing cost than most gold ETCs.
Affiliate partner — we may earn a commission at no extra cost to you. Gold prices can fall as well as rise.
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 pound-sterling trading line, its size ($40.8 billion at 31 August 2026), and availability on the major UK platforms including Hargreaves Lansdown, AJ Bell, interactive investor and Trading 212.
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 (nothing at Trading 212, up to 0.35% a year at Hargreaves Lansdown, or a flat monthly fee at interactive investor), and dealing charges (£0–£6.95 per online trade). For a £10,000 investment in iShares Physical Gold (SGLN) in an AJ Bell ISA, total annual costs would be approximately 0.37%, around £37 per year (0.12% fund charge plus AJ Bell's 0.25% account charge), plus £5 per deal.
All five gold ETCs compared in this guide (iShares (SGLN), Invesco (SGLD), WisdomTree (PHAU), Royal Mint (RMAU), and Xtrackers (XGDU)) are fully backed by allocated physical gold bars. Four keep their gold in London vaults; the Royal Mint ETC keeps its gold at the Royal Mint in Llantrisant, Wales. Each security gives you a claim on a fixed amount of that 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, held $40.8 billion of assets at 31 August 2026, trades in pounds on the London Stock Exchange (so you pay no currency conversion charge), and is available on the major UK platforms except Vanguard, which sells only its own funds. 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.
Use our investment calculator to see how much gold your budget buys, or compare all gold investment options side by side.
Founder & Market Researcher
Taro has been actively investing in precious metals and financial markets for over 15 years. Frustrated by the lack of transparent, accurate gold pricing information in the UK, he built London Gold Exchange as a data-driven resource for fellow investors. The site combines real-time market data, verified dealer information from 242+ UK businesses, and insights drawn from years of hands-on experience in the gold market.
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