8 Halal Gold ETFs – Physical Gold-Backed Funds (January 2026)
Gold ETFs backed by physical gold are generally considered halal as they represent actual ownership of gold stored in secure vaults. We list only ETFs with verified physical gold backing.
Also see: Is Trading Gold Halal? | All Halal ETFs (12) | Halal Stocks (64)
Physical gold backed • No derivatives • Shariah-compliant
Why Physical Gold ETFs Are Halal
- ✅ Each share represents ownership of actual gold bars in vaults
- ✅ Gold is a tangible asset permissible under Islamic law
- ✅ No interest (riba) or excessive speculation (gharar)
- ✅ Investors can request physical delivery (for most funds)
🥇 US-Listed Physical Gold ETFs (5)
These ETFs trade on US exchanges and hold physical gold in secure vaults.
| ETF | Name | Expense | AUM | Storage |
|---|---|---|---|---|
| GLD | SPDR Gold Shares | 0.40% | $55B+ | London (HSBC) |
| IAU | iShares Gold Trust | 0.25% | $25B+ | London, NY, Toronto |
| SGOL | abrdn Physical Gold Shares | 0.17% | $2.5B | Zurich, Switzerland |
| GLDM | SPDR Gold MiniShares | 0.10% | $7B+ | London (HSBC) |
| BAR | GraniteShares Gold Trust | 0.17% | $1B+ | London |
🌍 International Physical Gold ETFs (3)
These ETFs are listed on international exchanges but may be accessible through global brokers.
| ETF | Name | Expense | Exchange | Storage |
|---|---|---|---|---|
| IGLN | iShares Physical Gold ETC | 0.12% | London (LSE) | JPMorgan London |
| ZGLD | ZKB Gold ETF | 0.40% | SIX Swiss | Switzerland |
| PHAU | WisdomTree Physical Gold | 0.39% | London (LSE) | HSBC London |
📊 Which Gold ETF Should I Choose?
Best for Low Fees
GLDM (0.10%) or SGOL (0.17%) – Lowest expense ratios for US investors
Best for Liquidity
GLD – Largest AUM ($55B+), tightest spreads, most options activity
Best for Non-US Storage
SGOL – Gold stored in Zurich, Switzerland (outside US/UK jurisdiction)
Best Balance
IAU – Good liquidity ($25B), low fees (0.25%), multiple vault locations
⚠️ Gold ETFs to Avoid
Not all gold-related ETFs are Shariah-compliant. Avoid these types:
- Leveraged gold ETFs (e.g., UGL, DGP) – Use derivatives and borrowed money
- Inverse gold ETFs (e.g., GLL, DZZ) – Bet against gold using derivatives
- Gold futures ETFs – Hold futures contracts, not physical gold
- Synthetic gold ETFs – Use swaps instead of physical gold
💰 Zakat on Gold ETFs
Gold ETFs are subject to Zakat just like physical gold:
❓ Common Questions
Are gold ETFs halal?
Gold ETFs backed by physical gold are generally considered halal by most scholars. The ETF represents actual ownership of gold bars stored in vaults. You're essentially buying gold through a convenient wrapper. However, synthetic ETFs or those using derivatives are not permissible.
What's the difference between GLD and IAU?
Both hold physical gold, but GLD is larger ($55B vs $25B) with more liquidity.IAU has a lower expense ratio (0.25% vs 0.40%) and lower share price, making it better for smaller investments. Both are equally halal.
Can I take physical delivery of gold from these ETFs?
Most gold ETFs allow large institutional investors to redeem shares for physical gold (typically in baskets of 50,000+ shares). For retail investors, the process is impractical. If you want physical gold, consider buying from dealers directly or using allocated gold accounts.
Is gold a good halal investment?
Gold is a legitimate halal asset for wealth preservation and portfolio diversification. Historically it hedges against inflation and currency devaluation. However, gold doesn't generate income, so most advisors suggest limiting gold to 5-15% of a portfolio.
Total: 8 Gold ETFs | Last updated: January 28, 2026