Gold vs Equity: These Two ETFs Have Delivered Higher Returns Than Gold ETFs
Although gold has undoubtedly glittered in 2025, the performance of these two equity ETFs
Gold has become the talk of the town in 2025, especially after prices surged on June 13, when the safe-haven asset crossed the Rs 1 lakh mark per 10 grams on the MCX. The Gold Futures August contract on MCX touched a fresh all-time high.
This rally was largely triggered by escalating geopolitical tensions between Israel and Iran. However, this isn’t the first time gold has made headlines this year. Throughout 2025, gold prices have remained in focus due to ongoing global uncertainties, including trade wars and geopolitical unrest.
While gold has been one of the most attractive asset classes delivering strong returns in calendar year 2025, surprisingly, two equity-based Exchange Traded Funds (ETFs) have outperformed gold ETFs as of June 13, 2025 — and by a wide margin.
Here are the two standout performers:
- Motilal Oswal Nifty India Defence ETF – up 34.65 per cent
- Groww Nifty India Defence ETF – up 34.36 per cent
Motilal Oswal Nifty India Defence ETF
This ETF has outshone gold ETFs in CY2025 so far.
Investment Objective: To provide returns that, before expenses, closely correspond to the total returns of the securities represented by the Nifty India Defence Total Return Index, subject to tracking error.
Expense Ratio: 0.41 per cent
Inception Date: August 21, 2024
Groww Nifty India Defence ETF
Another strong performer that has outpaced gold ETFs this year.
Investment Objective: To generate long-term capital growth by investing in securities comprising the Nifty India Defence Index, in the same proportion/weightage, with the aim of providing returns that closely track the total return of the index before expenses, subject to tracking errors. However, there is no assurance that the scheme’s investment objective will be achieved.
Expense Ratio: 0.43 per cent
Inception Date: October 8, 2024
Best Performing Gold ETF in CY2025
Among gold ETFs, the UTI Gold ETF has delivered the highest return so far in 2025 — 30.74 per cent.
Conclusion
Although gold has undoubtedly glittered in 2025, the performance of these two defence-focused equity ETFs is a clear reminder that being positioned in the right sector at the right time can help generate alpha returns even surpassing the best-performing asset class of the year.
Disclaimer: The article is for informational purposes only and not investment advice.