SBI Gold ETF (NSE: SETFGOLD) is the third-largest gold ETF in India. This review covers what it holds, how closely it follows gold, what it costs against other gold ETFs, and when SBI's gold fund of funds is the better route. It explains the fund; it does not tell you whether to buy it.
Quick Facts
| Item | Detail |
|---|---|
| NSE symbol | SETFGOLD |
| Launched | 18 May 2009 |
| Assets (AUM) | ₹27,085 crore (31 August 2026) |
| Expense ratio | 0.65% a year (cut from 0.70% in April 2026) |
| Unit price | NAV ₹125.04 on 28 September 2026 |
| Holdings | 98.34% physical gold, 1.66% cash (31 August 2026) |
| Benchmark | Domestic price of gold, based on the LBMA morning gold price |
| Fund manager | Viral Chhadva (since March 2026) |
| Exit load | None |
| Minimum investment | 1 unit on the exchange |
Performance
| Period (to 28 Sep 2026) | SBI Gold ETF | Nippon Gold BeES |
|---|---|---|
| 1 year | 29.20% | 29.06% |
| 3 years (a year) | 34.60% | 34.53% |
| 5 years (a year) | 25.02% | 24.92% |
| 10 years (a year) | 15.53% | — |
Calculated from AMFI NAVs, adjusted for the 1:100 unit split in January 2022. SBI's own factsheet reports 50.07% for one year to 31 August 2026; the one-year figure falls to 29% a month later because the start date moved past a big September 2025 rally.
The two largest gold ETFs have delivered almost identical returns, as you would expect from two funds holding the same metal. SBI's slightly higher numbers match its lower fee.
The 2026 fall
SBI Gold ETF's NAV peaked at ₹148.93 on 29 January 2026 and fell 22% to ₹115.80 by 23 March, in the same precious-metals sell-off that took silver down 44%. It has since recovered to be up about 10% for 2026.
How Well Does It Track Gold?
SBI reports a tracking error of 0.43% over one year and 0.34% over three years, in line with the other large gold ETFs. Over the past year the fund trailed its benchmark by 1.94 percentage points. That is more than the 0.65% fee alone, because the fund also holds some cash and pays dealing costs.
Cost and Liquidity Compared
| Fund | Expense ratio | AUM (₹ Cr) | Avg daily traded value |
|---|---|---|---|
| SBI Gold ETF | 0.65% | 27,085 | ₹70 crore |
| Nippon India ETF Gold BeES | 0.81% | 58,629 | ₹300 crore |
| ICICI Prudential Gold ETF | 0.49% | 28,325 | — |
| HDFC Gold ETF | 0.59% | 24,417 | — |
| Mirae Asset Gold ETF | 0.35% | 3,530 | — |
AUM as of 31 August 2026; expense ratios checked late September 2026; traded value on the NSE averaged over 28 August to 28 September 2026.
SBI Gold ETF sits in the middle: 0.16 percentage points a year cheaper than Gold BeES, but 0.16 dearer than ICICI Prudential's gold ETF and 0.30 dearer than the cheapest. Gold BeES trades about four times as much each day, which matters mainly for large lump-sum orders. With ₹70 crore traded daily, SBI's ETF is liquid enough for almost any individual investor. See all 14 large gold ETFs in our gold ETF comparison.
SBI Gold ETF or SBI Gold Fund?
SBI Gold Fund is a fund of funds that invests in SBI Gold ETF. You buy it like any mutual fund, with no demat account.
| SBI Gold ETF | SBI Gold Fund (Direct) | SBI Gold Fund (Regular) | |
|---|---|---|---|
| Demat needed | Yes | No | No |
| Fees | 0.65% | 0.24% on top of the ETF's 0.65% | 0.42% on top of the ETF's 0.65% |
| Exit load | None | 1% if sold within 15 days | 1% if sold within 15 days |
| SIP | Only through some brokers | ₹500 a month for 12+ months, or ₹1,000 for 6+ | Same as Direct |
| 1-year return to 28 Sep 2026 | 29.20% | 28.64% | 28.43% |
| Long-term for tax after | 12 months | 24 months | 24 months |
Over one year the fund of funds trailed the ETF by about half a percentage point, the cost of its extra layer. But it hasn't always lost: over ten years SBI Gold Fund's Direct plan returned 15.78% a year against 15.53% for the ETF, calculated from AMFI NAVs. Over long periods the two land very close together. The bigger differences are practical: automatic SIPs and no demat account on one side, and faster long-term tax status on the other.
How It Is Taxed
- SBI Gold ETF: for units sold on or after 1 April 2025, gains after more than 12 months are taxed at 12.5% without indexation; within 12 months, at your slab rate.
- SBI Gold Fund: the same 12.5%, but only after more than 24 months.
- Gold is not equity, so the ₹1.25 lakh yearly exemption does not apply.
Who It Suits
- Fits: investors who want a large, established gold ETF at a mid-range fee, especially if they already use SBI's platforms.
- Look elsewhere: if cost matters most, several gold ETFs charge 0.35–0.49%. If you trade large amounts often, Gold BeES has far more daily volume; see our Gold BeES review.
- Allocation first: most planners suggest 5–15% of a portfolio in gold depending on age. Decide how much gold you want before choosing a fund.
The Bottom Line
SBI Gold ETF follows gold as closely as its bigger rival, costs 0.16 points a year less than Gold BeES, and trades enough for most investors. It is a reasonable choice, neither the cheapest nor the most traded. If you want the lowest fee, look at the cheaper gold ETFs; if you want automatic SIPs without a demat account, SBI Gold Fund's Direct plan does the same job with a longer wait for long-term tax.
This review explains how the fund works and what it costs. It is not a recommendation to buy or sell.