Gold Comfortably Outperforms Market YTD: ETFs to Consider

As of Nov. 18, 2025, gold was trading at more than $4,000 per ounce, cementing a remarkable 54% year-to-date gain. This stellar return is especially striking when compared to the year-to-date performance of the S&P 500, which has risen only about 13% so far this year. 

The precious metal’s breakout performance puts a clear spotlight on gold Exchange Traded Funds (ETFs) as a compelling asset for consideration, with investors facing multifaceted challenges in the form of widespread market volatility, high inflation and growing macroeconomic risks. 

With central banks and institutions accumulating record amounts of bullion, gold ETFs have provided an accessible, liquid avenue for capturing this upside — and recent performance suggests that maintaining or even increasing exposure to select gold ETFs may be a profitable move in the current landscape.

Now, before suggesting a few gold ETFs that you may add to your watchlist — and even invest in when you see fit — let us dig a little deeper into what enabled gold to outperform the market and what potential it has to continue its winning streak in the coming days.

How Gold Beat the S&P 500?

Gold’s significant beat over the S&P 500 is a classic illustration of its safe-haven status. The primary factors in favor of gold have been a cocktail of geopolitical instability and macroeconomic concerns. Heightened global tensions, along with rising U.S. national debt and uncertainty revolving around the U.S.-imposed tariff impacts, have caused central banks and private investors to aggressively diversify their reserves into the yellow metal.

Conversely, the S&P 500 faced headwinds from high valuations and mixed signals regarding the future of U.S. interest rates and economic growth. On the other hand, investor concern regarding the overvalued AI industry and the resultant pullback observed in the price of renowned tech stocks also weighed heavily on the overall performance of the S&P500. 

Fears about the market’s sustainability pushed investors toward defensive assets, including gold. Even with recent modest retreats, such as the drop below $4,000 per ounce in late October and early November (after briefly touching highs above $4,200), gold has still maintained its commanding lead over the broader market.

Gold’s Outlook Remains Favorable

The outlook for gold remains robust, suggesting that its impressive run is more structural than cyclical, supported by several enduring trends.

The structural drivers of gold's demand are expected to persist. As policymakers seek asset diversification, purchases from central banks can be expected to remain a key driver of bullion’s run over the next year, just as they have been over the past couple of years.

To this end, J.P. Morgan’s Gold’s global head of macro and fixed income strategy, Alex Wolf, expects this yellow metal's price to reach $5,200-$5,300 by the end of 2026, as cited in a Nov. 10, 2025, press release by Bloomberg. This indicates an almost 25% hike from where the metal is currently trading.  

Additionally, the potential for the Federal Reserve to begin an easing cycle and cut interest rates later would typically lower bond yields, increasing the relative attractiveness of non-yielding gold. 

Geopolitical and U.S. policy uncertainty also continues to make gold an optimal hedge for investors.

These tailwinds create an environment where certain gold ETFs should be a key part of an investor’s focus, providing direct, liquid exposure to the metal’s anticipated climb in the coming days.

Gold ETFs to Consider

Considering the aforementioned discussion, we present three gold ETFs that investors can keep on their watchlists — or even increase their exposure to, as they see fit — to benefit from the anticipated rise in bullion prices next year.

SPDR Gold Shares GLD

It is the first U.S.-traded gold ETF with approximately $136.33 billion in Assets Under Management (“AUM”). Its net asset value (NAV) as of Nov. 17, 2025, was $374.65. 

GLD has surged 54.6% year to date. The fund charges 40 basis points (bps) as fees. 

iShares Gold Trust IAU

This fund has $63.21 billion in net assets, while its NAV as of Nov. 18, 2025, was $76.49. IAU has soared 54.9% year to date. The fund charges 25 bps as fees. 

iShares Gold Trust Micro IAUM

This fund has $5.41 billion in net assets, while its NAV as of Nov. 18, 2025, was $40.48. IAUM has surged 55.1% year to date. The fund charges 9 bps as fees.  
 

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This article originally published on Zacks Investment Research (zacks.com).

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