2 Best Precious Metals ETFs in Canada (June 2026)

Precious metals ETFs are designed for Canadian investors seeking exposure to assets like gold and silver, often used as a hedge against inflation and economic uncertainty. ETFs like ZMT.TO and XGD.TO provide access to precious metals through mining companies or diversified metals exposure.

The key benefit of these ETFs is their role as a defensive asset during market volatility. However, returns can be cyclical and heavily influenced by commodity prices, interest rates, and global economic conditions.

In this guide, we break down the best precious metals ETFs in Canada, comparing exposure, strategy, and risk so you can decide how they fit into your TFSA, RRSP, or diversified portfolio.

A precious metals ETF in Canada is an exchange-traded fund that provides exposure to metals like gold, silver, and platinum, either through physical holdings or mining companies. These ETFs allow investors to gain exposure to precious metals without directly buying bullion.

For example, ZMT.TO (~0.61% MER) provides diversified exposure to global precious metals companies, while XGD.TO (~0.61% MER) focuses on gold mining stocks listed in Canada. HUG.TO offers exposure to gold through futures, while CGL.C.TO holds physical gold bullion.

Precious metals ETFs are commonly used in TFSAs and RRSPs as a hedge against inflation and market uncertainty. Investors should understand whether the ETF tracks physical metals, futures, or mining equities, as this affects risk and performance.

Pros

• Can act as a hedge against inflation and economic uncertainty
• Exposure to gold and silver as defensive assets
• Diversification beyond traditional stocks and bonds
• Potential to perform well during market stress or currency weakness

Cons

• Returns can be cyclical and dependent on commodity prices
• Mining ETFs are more volatile than physical bullion ETFs
• No income generation compared to dividend-paying assets
• Sensitive to interest rates and global economic conditions