Best Gold ETFs on the TSX
Physical Gold ETFs
| ETF | Ticker | MER | Type | Currency | AUM |
|---|---|---|---|---|---|
| iShares Gold Bullion ETF | CGL / CGL.C | 0.55% | Physical gold bullion | CAD (hedged) / CAD (unhedged) | $1.2B+ |
| Sprott Physical Gold Trust | PHYS | 0.40% | Physical gold (held in Royal Canadian Mint) | USD (TSX-listed) | $6B+ |
| Purpose Gold Bullion Fund | KILO | 0.23% | Physical gold bullion | CAD | $200M+ |
| CI Gold Bullion Fund | VALT | 0.16% | Physical gold bullion | CAD | $500M+ |
| Royal Canadian Mint Gold ETR | MNT | 0.35% | Gold receipts (backed by Mint) | CAD | $500M+ |
Gold Mining ETFs
| ETF | Ticker | MER | Type | Holdings | Yield |
|---|---|---|---|---|---|
| iShares S&P/TSX Global Gold Index | XGD | 0.61% | Global gold miners | Barrick, Franco-Nevada, Agnico Eagle | ~1% |
| BMO Equal Weight Gold Index | ZGD | 0.61% | Canadian gold miners (equal weight) | 12–15 miners | ~1% |
| VanEck Gold Miners (US-listed) | GDX | 0.51% | Global gold miners | 50+ miners | ~1.5% |
| VanEck Junior Gold Miners (US-listed) | GDXJ | 0.52% | Small-cap gold miners | 90+ junior miners | ~0.5% |
| Horizons Gold Yield ETF | HGY | 0.65% | Gold exposure + covered calls | Gold + options | ~5% |
Physical Gold ETF vs Gold Miners
| Factor | Physical Gold ETF (CGL) | Gold Mining ETF (XGD) |
|---|---|---|
| Tracks | Gold spot price directly | Performance of gold mining stocks |
| Volatility | Moderate | High (2–3x gold price moves) |
| Dividends | None | ~1% yield |
| Upside potential | Matches gold price | Amplified (operating leverage) |
| Downside risk | Matches gold price | Amplified (company-specific risk) |
| MER | 0.16–0.55% | 0.51–0.61% |
| Best for | Hedging, stability | Growth potential, higher risk |
Gold Allocation Strategies
| Investor Type | Recommended Gold Allocation | Preferred ETF |
|---|---|---|
| Conservative (capital preservation) | 10–15% | CGL.C or PHYS (physical) |
| Balanced (moderate growth) | 5–10% | CGL + small XGD position |
| Growth-oriented | 0–5% | XGD (miners for leverage) |
| Income-focused | 0–5% | HGY (covered call yield) |
Gold ETF Returns (Historical)
| Period | Gold Spot Price | CGL (Physical) | XGD (Miners) |
|---|---|---|---|
| 1 year | ~15% | ~14% | ~20% |
| 3 years (annualized) | ~12% | ~11% | ~15% |
| 5 years (annualized) | ~10% | ~9% | ~8% |
| 10 years (annualized) | ~8% | ~7% | ~4% |
Returns are approximate and vary by time period. Gold miners are more volatile but can outperform during gold bull markets.
Tax Treatment in Registered Accounts
| Account | Physical Gold ETF (CGL) | Gold Mining ETF (XGD) | US-Listed Gold ETF (GLD) |
|---|---|---|---|
| RRSP | No tax on gains or distributions | No tax | No US withholding (treaty exempt) |
| TFSA | No tax | No tax | 15% US withholding on dividends (N/A for physical gold) |
| Non-registered | Capital gains on sale (50% inclusion) | Capital gains + dividends taxed | Capital gains + FX gains/losses |
| FHSA | No tax | No tax | Same as TFSA |
How to Buy Gold ETFs
| Step | Details |
|---|---|
| 1. Open a brokerage account | Wealthsimple, Questrade, TD Direct, etc. |
| 2. Choose your gold ETF | Physical (CGL, PHYS) or miners (XGD) |
| 3. Decide on account type | TFSA, RRSP, or non-registered |
| 4. Place buy order | Market or limit order for the number of shares/units |
| 5. Monitor and rebalance | Rebalance annually to maintain target allocation |