Gold ETF Singapore
Physical Gold Exposure via Exchange-Traded Funds — Singapore Investor Guide — Singapore investing guide with key metrics, examples and 2026 data.
A gold ETF (exchange-traded fund) is an investment fund that tracks the price of gold bullion, allowing investors to gain exposure to gold without physically holding it. Singapore investors can access gold ETFs listed on SGX or international exchanges through local brokers, with the SPDR Gold Shares ETF (SGX: O87) being the most accessible option.
Not financial advice. All figures are for educational reference only. Data as at Q1 2026 unless noted.
Table of Contents
What Is a Gold ETF in Singapore?
A gold ETF is an exchange-traded fund that holds physical gold bullion (or gold derivatives) and trades on a stock exchange like ordinary shares. Each unit of a gold ETF represents a fraction of an ounce of gold. When gold prices rise, the ETF unit price rises proportionally, allowing investors to profit from gold’s appreciation without dealing with the logistics of storing physical gold.
Gold ETFs offer a practical, liquid, and cost-effective way to add gold to an investment portfolio. Unlike physical gold (coins or bars), ETFs can be bought and sold instantly during market hours, require no storage costs or insurance, and can be held in a brokerage account alongside stocks and other assets.
For Singapore investors, gold serves as a portfolio diversifier and inflation hedge. Gold has historically had low correlation with equities and bonds, meaning it often performs well when other asset classes struggle — as seen during the 2020 COVID-19 market crash, the 2022 inflationary period, and geopolitical stress events. As at Q1 2026, gold prices remain elevated at around USD 2,800–3,000 per troy ounce.
How Gold ETFs Work
Most physically-backed gold ETFs hold gold bars in vaults (typically in London, Zurich, or New York) audited by independent custodians. Each ETF unit entitles the holder to a specific weight of gold. For example, SPDR Gold Shares (O87 on SGX) originally represented 1/10th of a troy ounce per share, adjusted over time for management fees.
Expense ratio: Gold ETFs charge an annual management fee, deducted from the fund’s net asset value. SPDR Gold Shares charges 0.40% p.a. iShares Gold Trust (IAU) charges 0.25% p.a. These fees are lower than the storage and insurance costs of holding physical gold.
Currency risk: Gold is priced globally in USD. Singapore investors holding gold ETFs in SGD terms face USD/SGD currency risk. When SGD strengthens against USD, gold ETF returns in SGD terms are reduced. Some investors hedge this by using USD-denominated brokerage accounts.
Gold ETFs do not pay dividends — returns come entirely from gold price appreciation. This makes them unsuitable as an income-generating investment and more appropriate as a capital preservation or portfolio hedge allocation.
Gold ETFs in Singapore (2026)
Singapore investors have several ways to access gold ETFs:
- SPDR Gold Shares (SGX: O87): Listed on SGX in USD, this is the most liquid gold ETF for Singapore investors. Expense ratio: 0.40% p.a. Minimum board lot: 1 unit.
- iShares Gold Trust (IAU): Available via US-listed platforms (Interactive Brokers, Tiger Brokers, moomoo). Lower expense ratio at 0.25% p.a. but requires a US brokerage account.
- SPDR Gold MiniShares (GLDM): USD 0.10% p.a. expense ratio, available via US brokers — the most cost-efficient option for regular investors.
Singapore investors can buy O87 through local brokers (DBS Vickers, OCBC Securities, UOB Kay Hian) directly in SGD, making it the simplest entry point. CPFIS-approved investors can also use CPF OA funds to buy O87 — it is one of the approved gold investment products under the CPF Investment Scheme (CPFIS).
For those seeking Singapore-dollar-based exposure, the Phillip SGD Gold ETF offers a local dollar option, though with lower liquidity compared to O87. Gold ETFs can also be held in SRS accounts via brokerage.
Real-World Examples
As at March 2026, SPDR Gold Shares (O87) is trading at approximately USD 277 per unit on SGX (reflecting approximately 0.094 troy ounces of gold per unit at ~USD 2,950/oz, adjusted for accumulated fees). An investor buying 100 units would gain exposure to approximately 9.4 troy ounces of gold, worth approximately USD 27,730 (SGD ~37,500).
Over the past 5 years (2021–2026), gold prices have risen from approximately USD 1,800/oz to USD 2,950/oz — a 63.9% gain. Over the same period, the STI returned approximately 35% in total return terms. Gold significantly outperformed Singapore equities during this period, largely driven by Fed rate uncertainty and geopolitical risk premiums.
A common portfolio allocation among Singapore financial planners is 5–10% in gold (via ETF) as a hedge within a broader diversified portfolio that includes S-REITs, bonds, and local/global equities. Our passive income guide covers how gold fits into income-generating portfolio construction.
Why Gold ETFs Matter for Singapore Investors
In the context of Singapore portfolio construction, gold ETFs play a specific role: they provide a low-correlation asset that can reduce overall portfolio volatility. During market downturns driven by credit events or risk-off sentiment, gold often appreciates while equities fall.
For Singapore investors specifically, gold also provides a partial hedge against SGD depreciation risk in a portfolio heavily weighted towards Singapore-centric assets. Since gold is priced globally in USD, it tends to retain purchasing power against imported inflation.
However, gold earns no income — unlike S-REITs which distribute 5–7% yields, or T-bills which provide current yield. Investors seeking both capital preservation and income need to balance gold’s non-income characteristics against the yield drag in a passive income portfolio. Use our Retirement Planning Calculator to model how a gold ETF allocation affects your projected retirement income.
Frequently Asked Questions
What is the best gold ETF for Singapore investors?
For Singapore investors, SPDR Gold Shares (SGX: O87) is the most accessible option, tradeable via local brokers in USD on SGX. For lower fees, iShares Gold Trust (IAU, 0.25% p.a.) or SPDR Gold MiniShares (GLDM, 0.10% p.a.) are available via US brokerage platforms like Interactive Brokers or Tiger Brokers.
Can I use CPF to buy gold ETF in Singapore?
Yes — SPDR Gold Shares (O87) is approved under the CPF Investment Scheme (CPFIS) for investment using CPF Ordinary Account funds. However, note that CPF OA funds earn a guaranteed 2.5% p.a., so gold ETF investment only makes sense if you expect gold returns to outperform this risk-free rate over your investment horizon.
Is gold ETF income taxable in Singapore?
Gold ETFs do not pay dividends, so there is no dividend tax consideration. Capital gains from selling gold ETFs are generally not taxable in Singapore, as Singapore does not have a capital gains tax. However, if trading is frequent and commercial in nature, IRAS may treat gains as income — consult a tax advisor for your specific situation.
How does a gold ETF differ from physical gold in Singapore?
A gold ETF offers liquidity, low cost, and no storage hassle — you can buy and sell it like a stock. Physical gold (bars or coins) requires secure storage, insurance, and may have higher buy-sell spreads. Gold ETFs are preferable for most retail investors; physical gold suits those who want direct ownership outside the financial system.
What is the expense ratio of gold ETFs in Singapore?
SPDR Gold Shares (O87 on SGX) charges 0.40% p.a. iShares Gold Trust (IAU) charges 0.25% p.a. SPDR Gold MiniShares (GLDM) charges 0.10% p.a. — the cheapest option for long-term investors. The Phillip SGD Gold ETF charges 0.50% p.a. Lower expense ratios compound to meaningful savings over multi-year holding periods.
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