Gold ETF 2026: The Complete Guide to Gold ETCs, Taxation, and Selection

In Germany, there are no pure gold ETFs, but rather physically backed gold ETCs such as Xetra-Gold or EUWAX Gold II. These debt securities track the gold price one-to-one and store actual gold in vaults. With a delivery claim, capital gains remain tax-free after one year of holding. The total volume is around 115.85 billion euros.

What distinguishes gold ETFs from gold ETCs

Anyone wanting to invest in gold will quickly come across two terms. Gold ETFs stand for Exchange Traded Funds, gold ETCs for Exchange Traded Commodities. Both are exchange-traded securities that replicate the performance of the precious metal. The decisive difference lies in the legal structure, and that is precisely what shapes the German market.

Why there are no pure gold ETFs in Germany

The UCITS Directive prescribes minimum diversification for funds. An investment fund is not permitted to invest exclusively in a single commodity. This means a classic gold ETF that holds 100 percent gold is not permitted in Europe. Providers solve this through gold ETCs, which are structured as debt securities.

Gold ETC as a traded debt security

A gold ETC is a collateralized debt security. The issuer promises to replicate the value of a specific quantity of gold. For physically backed products, actual gold is held in a vault for each share. This collateral reduces issuer risk, which would be significantly higher for unsecured debt securities.

The difference from gold mining ETFs

In addition to physical products, there are gold mining ETFs. They invest not in the metal itself, but in gold mining company shares. Their performance follows the business results of mining operators and deviates from the gold price. Some even pay dividends. For investors who confuse pure gold ETCs with the metal, this difference is important.

Physical gold vs ETC: Two paths to precious metals

The debate of physical gold vs ETC accompanies every newcomer. A gold bar in your safe deposit box belongs to you directly, but incurs costs for storage and insurance. Gold ETCs replicate the same price without you having to worry about a vault.

Advantages of the ETC option

• Buying and selling happen in seconds via the exchange.
• No own storage, no insurance costs.
• Tight spreads and high liquidity on Xetra.
• Savings plans enable building wealth even with small amounts.

Limitations compared to actual gold

Physical gold vs ETC remains a matter of trust. Anyone holding a gold bar in hand is not dependent on an issuer. With gold ETCs, the creditworthiness of the provider and the actual coverage in the vault matter. Physically backed products mitigate this point but do not fully resolve it.

Gold as a safe haven in a safe haven portfolio

Gold is considered an anchor in crises. When stocks fall and currencies fluctuate, capital seeks a safe haven. A safe haven portfolio leverages this exact property: gold often correlates inversely to stocks and stabilizes the overall portfolio.

Diversification as a core principle

Diversification across multiple asset classes reduces overall risk. Gold is a component that cushions fluctuations in other positions. As an admixture, not as a sole investment, the precious metal unfolds its strength in the safe haven portfolio.

Gold as inflation protection

Rising government debt and doubts about fiat currencies drive demand. The so-called debasement trade describes exactly this dynamic. Historically, gold protects purchasing power during periods of high inflation, although the relationship is not linear in the short term.

Gold price and market situation in 2026

The year 2025 brought extraordinary performance. The gold price rose around 65 percent, the strongest annual performance since 1979, with 53 new all-time highs according to the World Gold Council.

Key figures at a glance

• All-time high: 5,589.38 USD/oz on January 28, 2026
• Price end of June 2026: approximately 4,190 USD/oz, around 25 percent below the peak
• 1-year return: +29.57 percent
• 3-year return: +116.49 percent
• 5-year return: +155.63 percent

Drivers of the gold price

Five factors support the gold price in 2026. Central banks purchased around 863.3 tonnes in 2025, more than double the average from 2010 to 2021. Emerging markets like China, Poland, India, and Turkey are exchanging dollar reserves for gold. Interest rate cuts, high ETF inflows, and fiscal risks add to this.

Bank forecasts for end of 2026

• Wells Fargo: 6,100 to 6,300 USD/oz
• J.P. Morgan: around 6,000 USD/oz
• Bank of America: 6,000 USD/oz
• UBS: 5,500 USD/oz
• Commerzbank: 5,000 USD/oz

Precious metals ETF comparison: The most important products

The market comprises around 17 available gold ETFs and gold ETCs from nine providers. A precious metals ETF comparison helps with the selection. The total cost ratio ranges from 0.00 to 0.99 percent. Below are the products most commonly used in the DACH region.

Xetra-Gold (A0S9GB)

Xetra-Gold is the classic among German gold ETCs. Each share corresponds to one gram of physical gold, stored in Frankfurt. Investors have a delivery claim on their gold. This claim is exactly what makes capital gains tax-free after one year of holding. The high fund volume ensures tight spreads.

EUWAX Gold II

EUWAX Gold II operates on the same principle. The physically backed gold is stored in a German vault, and the delivery claim exists. With EUWAX Gold II, the potential tax exemption applies following the Federal Tax Court ruling from June 2020. Running costs are low, making EUWAX Gold II attractive for buy-and-hold strategies.

iShares Physical Gold ETC

The iShares Physical Gold ETC ranks among the largest physically backed products in Europe. It replicates the gold price and stores the metal in vaults. The iShares Physical Gold ETC is aimed at investors who value a high fund volume and low running fees.

Invesco Physical Gold

Invesco Physical Gold is also among the high-volume gold ETCs. The product is physically backed and tradable on Xetra. The low total cost ratio makes it interesting for long-term portfolios.

Xtrackers IE Physical Gold ETC Securities

Xtrackers IE Physical Gold ETC Securities replicates the gold price in euros and stores physical gold. As with other exchange-traded commodities, coverage by actual metal is at the center. The product is suitable as a low-cost core of a gold investment.

Xtrackers Physical Gold EUR Hedged ETC (A1EK0G)

The Xtrackers Physical Gold EUR Hedged ETC hedges currency risk. Since the gold price is quoted in US dollars, the euro value of an unhedged product fluctuates with the exchange rate. This hedge reduces currency risk but incurs additional costs through the ongoing hedging strategy.

Gold ETFs and gold ETCs: Advantages and disadvantages

Each alternative to the physical bar has two sides. The clear advantage lies in easy access, the downside in costs and issuer dependency.

The opportunities

• Passive investment without effort for storage.
• Participation in gold price gains.
• Tax exemption with ETCs that have a delivery claim.
• Entry possible even with small savings plan instalments.

The risks

• Issuer risk with debt securities without full coverage.
• No physical delivery with many international products.
• Opportunity costs, since gold pays no interest and provides no distributions.
• Price fluctuations: In March 2026, gold fell by over 10 percent.

Are gold ETCs and gold ETFs safe?

Safety is measured here by physical backing. A physically backed gold ETC is covered by metal in a vault that belongs to investors in the event of issuer insolvency. Unlike a conventional fund, it is not legally considered separate assets, but rather a debt security. The coverage largely replaces the missing separate asset status.

Putting issuer risk in perspective

When selecting gold ETCs, attention should be paid to physical backing and the delivery claim. This rule significantly reduces risk. Unsecured or synthetic products have no place in portfolios of safety-conscious investors.

What is better: Gold ETF or gold ETC?

For investors in the German-speaking region, the question is practically decided. Pure gold ETFs are not permitted, but physically backed gold ETCs are available. Those seeking the tax advantage choose products with a delivery claim such as Xetra-Gold or EUWAX Gold II. International gold ETFs based on gold mining shares pursue a different goal and carry their own opportunities and risks.

Where can I buy gold ETFs or gold ETCs?

Buying is done through a broker and a securities account. All common gold ETCs are listed on German exchanges such as Xetra. For a gold investment in the DACH region, numerous options are available, from direct purchase to ETF savings plans.

Brokers and accounts

Many investors use digital brokers. Trade Republic and Scalable Capital offer a broad selection of gold ETCs, often with no fixed order fees. When buying, pay attention to spreads and any commissions from the broker that affect your actual return.

Savings plans for gradual buildup

ETF savings plans smooth your entry point. An ETF savings plan for a gold ETC allows you to build wealth over months. This way you buy sometimes more expensive and sometimes cheaper, averaging your purchase price. Many brokers offer gold ETC savings plans starting with small instalments.

Tax exemption and delivery claim in Germany

The tax issue is crucial for a gold investment in the DACH region. Following the Federal Tax Court ruling of June 2020, capital gains from physically backed gold ETCs with a delivery claim can be tax-free if you hold the shares for at least one year. This applies similarly to direct purchase of gold bars.

Why the delivery claim matters

Not every product grants this tax exemption. Only ETCs with a genuine delivery claim, such as Xetra-Gold, meet the requirement. Check before purchasing whether the delivery of the underlying metal is contractually provided. The delivery itself is usually expensive, but the claim establishes the tax benefit.

These factors matter in the selection

A precious metals ETF comparison pays off because small cost differences become noticeable over the years. These criteria help in the decision.

Costs and spreads

Compare total cost ratio, trading costs, and spreads. With buy-and-hold, every fee counts. A low-cost gold ETC with high fund volume usually offers tighter spreads.

Physical backing and delivery

Prefer physically backed products. Vault storage minimizes issuer risk, and the delivery claim secures the tax exemption.

Currency and volume

High fund volume speaks to liquidity. Those who want to avoid currency risk should check hedged variants and weigh the additional costs against the benefit.

Frequently asked questions about gold ETCs

Should you still invest in gold in 2026?

After the strong rise in 2025, the gold price is undergoing consolidation. Most institutions do not view this as a structural decline. As an admixture in the safe haven portfolio, gold remains a worthwhile component.

Which gold ETCs are recommended?

There is no blanket recommendation. Physically backed products with a delivery claim and low total cost ratio form the solid foundation. Xetra-Gold and EUWAX Gold II meet these criteria and are tax-efficient.

Is a gold ETF savings plan worthwhile?

Yes, ETF savings plans are suitable for long-term buildup. An ETF savings plan reduces timing risk and fits the gradual buildup of gold allocation.

Conclusion: Gold ETCs as a portfolio building block

For private investors in the DACH region, physically backed gold ETCs are the practical way to participate in the precious metal's performance. By focusing on delivery claims, physical backing, and low costs, you combine tax exemption with easy exchange access.

As a final conclusion: gold belongs in your portfolio for diversification, not as a sole investment. The commodity admixture stabilizes and complements stocks without replacing them.