Money.ca
Investing in Canada
Stocks
Canadian gold stocks and ETFs

Best Canadian gold stocks and ETFs

Sandy Yong Freelance Contributor

Updated Apr 22, 2025

For investors seeking to diversify their portfolios during economic uncertainty, gold is a popular choice. Classified as a commodity, gold is a raw material used in the production of consumer goods.

While we adhere to strict editorial guidelines, partners on this page may provide us earnings.

In 2025, the price of this precious metal skyrocketed as many cautious investors turned to it to safeguard their investments. This has been caused by the global trade war tensions that have rattled the stock market in recent weeks. 

Here, we’ll explore the benefits of investing in gold, the top-rated gold stocks, Canadian gold ETFs and factors you should consider before investing in this hot commodity. 

Best gold stocks on the TSX

The following are the noteworthy Canadian gold companies that are listed on the Toronto Stock Exchange (TSX): 

Track all markets on TradingView

  • Barrick Gold (TSX: ABX)

    +

    Headquartered in Toronto, Barrick Gold is one of the world's largest gold mining companies. Investors will find that this global company offers a strong balance sheet and pays quarterly dividends.

    In addition to gold production, they’re also focused on expanding their copper production. With its low-cost production and high output, this may be a solid choice for conservative investors who want to add Canadian gold mining stocks to their portfolio.

  • Agnico-Eagle Mines (TSX: AEM)

    +

    One of the best Canadian gold stocks is Agnico-Eagle, which operates in Canada, Mexico, Finland and Australia. What’s appealing about this company is that it has high-margin production and a track record of impressive earnings that have resulted in strong yields for investors.

    They also have stable management that focuses on following environmental, social and governance (ESG) standards, making it a sustainable long-term business.

  • Franco-Nevada (TSX: FNV)

    +

    An alternative to gold mining stocks is investing in streaming and royalty-based companies. This is where a company, such as Franco-Nevada, finances gold miners in exchange for a percentage of their revenue or an allotment of future gold production at a set price.

    Franco-Nevada has a diversified portfolio located in Canada, the United States and Australia, earning revenue from gold, silver and platinum. This low-operational-risk company has demonstrated a strong history of dividend growth, no direct mining exposure and lower volatility.

Best Canadian gold ETFs

These are among the best gold ETFs available in Canada: 

Track all markets on TradingView
Best gold ETFs
  • iShares Gold Bullion ETF (CGL/CGL.C): BlackRock offers physically backed gold bullion, minus fees and expenses, in both hedged (CGL) and unhedged versions (CLG.C). However, this ETF comes with the highest management expense ratios (MER) of the group.
  • Sprott Physical Gold Trust (PHYS): This ETF gives investors the ability to invest in physical gold that’s held in custody by the Royal Canadian Mint. It’s unhedged, which means it could face volatility with the US and Canadian exchange rates. It also has an upper-end MER of 0.41%.
  • Purpose Gold Bullion Fund (KILO): An attractive option because it has the lowest MER and is hedged against currency fluctuation. Just like the Sprott ETF, their gold bars are also stored at the Royal Canadian Mint.
  • BMO Gold ETFs (ZGLD, ZGLH, ZGLD.U): With a basket of three commodity ETFs, they all share the same MER of 0.23% along with annual dividend payouts. ZGLD is unhedged to the Canadian dollar, whereas ZGLH is the Canadian-hedged option. Investors who have U.S. dollars on hand can purchase the ZGLD.U.
ETF (Ticker) Management expense ratio (MER + Currency exposure Type of gold exposure
iShares Gold Bullion ETF (CGL) MER: 0.56%

Hedged to the Canadian dollar 		Physical gold bullion stored by CIBC Mellon
iShares Gold Bullion ETF (CGL.C) MER: 0.55%

Unhedged to the Canadian dollar 		Physical gold bullion stored by CIBC Mellon
Sporott Physical Gold Trust (PHYS) MER: 0.41%

Unhedged to the Canadian dollar 		Physical gold bullion stored by The Royal Canadian Mint
Purpose Gold Bullion Fund (KILO) MER: 0.20%

Hedged to the Canadian dollar 		Physical gold bullion stored by The Royal Canadian Mint
BMO Gold ETFs (ZGLD) MER: 0.23%

Unhedged to the Canadian dollar 		Physical gold bullion is stored in a local BMO vault
BMO Gold ETFs ( ZGLH) MER: 0.23%

Hedged to the Canadian dollar 		Physical gold bullion is stored in a local BMO vault
BMO Gold ETFs (ZGLD.U) MER: 0.23%

U.S. dollars 		Physical gold bullion is stored in a local BMO vault

Gold stocks vs gold ETFs — what’s the difference?

Besides buying physical gold (which can be quite an onerous process when it comes to storage and security), the main options for purchasing this commodity through the stock market are gold stocks or gold exchange-traded funds (ETFs). Here’s an overview of each option: 

Canadian gold stocks provide various ways to gain exposure to gold. For example, there are gold mining companies, exploration companies that search for new gold deposits and development businesses that focus on turning gold deposits into mine production. Also, there are royalty and streaming companies that provide funding to gold mining companies, with the agreement that they will receive royalties based on future gold production. 

When you choose a single company, its performance can offer potential growth and dividends. If they face operational, management or budgetary problems, it could impact their performance. So, gold stocks are better suited for active investors who are comfortable evaluating gold stocks and following industry trends. 

For investors looking to gain exposure to the pure gold price, Canadian gold ETFs offer a convenient and lower-risk option, as they avoid the volatility of investing in a single company. However, it does bring about commodity risk as its returns are directly tied to the value of the commodity. 

Furthermore, gold doesn’t generate any income, nor does it yield any dividends. As a result, gold ETFs are most suitable for passive investors who want to protect themselves against economic turmoil but don’t want to spend time evaluating individual gold companies. 

Why invest in gold?

Gold is attractive to investors because it has a low correlation with stocks and bonds. It has a solid reputation and is considered a safe-haven asset during economic uncertainty. Gold also helps to hedge against inflation and currency risk.

Did you know that Canada is a major player in gold mining? In 2023, Canada was the fourth largest gold producer worldwide, and its mines yielded approximately 200 tonnes of gold.1

Since China and the United States have escalated tariffs against each other, this unpredictability has driven up investor demand in recent months. In the past year, gold prices have increased by 34.80% (C$1,150.74) to a peak of over C$4,500 (approximately US$3,200).2

So far in 2025, the price of gold has increased by 24.52%, while the S&P/TSX Composite is down 2.24%. Adding gold to diversify an investment portfolio may be an ideal solution for Canadian investors.

How to buy gold stocks or ETFs in Canada

These brokerages allow you to open up investment accounts, including the Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), or a non-registered account. You can purchase gold shares or ETFs within these accounts. However, it’s essential to understand the tax implications when making this decision. 

Another thing to consider is that gold ETFs have MERs, which typically range from 0.20% to 0.70%, annually. On the other hand, gold stocks don’t have annual management fees, but if you’re actively trading gold stocks, any trading fees could add up quickly. Gold ETFs may provide more stability, whereas gold stocks can provide higher growth potential but could be more volatile. 

Related read: How to invest in gold

Scenario of buying a gold ETF

Let’s go through an example. Elliot wants to buy the BMO Gold Bullion ETF within their TFSA. First, they’ll need to look up the ticker symbol, which is “ZGLD.” After signing into their brokerage account, they select the trading option to search for ZGLD. They can place a trade to buy a certain number of gold shares within their TFSA.

Elliot has $1,000 to invest in this gold ETF. The price per share of ZGLD is $49.50. This means they can buy 20 shares ($1,000 divided by $49.50 = 20 shares; $49.50 x 20 shares = $990). The unused balance of $10 ($1,000 - $990 = $10) may be used to pay the trading fee, which varies by brokerage.

Next, Elliot can set a market order to buy gold shares immediately at the best price. While the transaction gets processed quickly, they may pay more than expected. In contrast, setting a limit order determines the maximum price they’re willing to pay, but the order may take longer to fill or go unfulfilled.

Are gold investments right for you?

With gold prices soaring to an all-time high, investors may be wondering whether it’s too late to invest in gold. From an historical perspective, gold usually performs well in times of geopolitical tensions or inflation. As a precious metal, it can be susceptible to volatility, but usually investors seek out gold when they’re looking for stability when the stock market is turbulent. 

Another consideration is your ideal time horizon. Long-term investors may find gold ETFs to be a suitable option, whereas short-term traders who enjoy researching recommended gold stocks could reap the benefits from individual gold stocks. Ultimately, gold is best for a wide range of investors, including conservative investors, inflation hedgers and diversification seekers. Don’t forget, there are plenty of other assets, such as cryptocurrency, silver or cash, that can help with reaching your investment goals. 

If you’re still on the fence about which are the best gold stocks or gold ETFs to buy in Canada, consider consulting with a financial advisor or continue reading the linked guides for a deeper understanding of portfolio strategy.

Related reads: Best ETFs in Canada and How to invest in ETFs

Sandy Yong Freelance Contributor

Sandy Yong is the author of the award-winning book, The Money Master: Inside Secrets On How To Make Your Money Grow and Stay Safe. She has been featured in the Toronto Star, NBC News and Yahoo! Finance.

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.