Against the backdrop of a steadily climbing international gold price, gold ETFs are having a moment in the spotlight. Following the market close on January 14, 2026, the assets under management of Huaan Gold ETF, the largest commodity ETF in the domestic market, reached 100.762 billion yuan, marking its first breach of the 100-billion-yuan threshold and establishing it as the first commodity ETF in China to reach this milestone. On January 15, this gold ETF's assets continued to grow, reaching 101.181 billion yuan. Consequently, the total assets of the 14 gold ETFs in the domestic market have now exceeded 260 billion yuan, representing a near-tripling in size compared to a year ago. Over the past year, a combination of continuous capital inflows and rising net asset values has jointly propelled the explosive growth in gold ETF assets. Looking ahead, institutions remain optimistic about the allocation value of gold. Some fund managers caution that investors should now refocus on gold's fundamental role in asset allocation, treating it as a medium- to long-term tool for hedging against inflation and systemic risks, and for smoothing portfolio volatility. The increase over the past year is close to threefold. In recent years, gold ETFs have become a crucial vehicle for a wide range of investors to allocate to gold assets. Since the start of 2026, the trend of capital flowing into gold ETFs has persisted. According to Wind data, from January 1 to January 15, 2026, Huaan Gold ETF, Guotai Gold ETF, and Bosera Gold ETF attracted net inflows of 1.472 billion yuan, 1.378 billion yuan, and 1.086 billion yuan, respectively. ChinaAMC Gold ETF and E Fund Gold ETF saw net inflows of 920 million yuan and 677 million yuan, respectively. Amid this sustained inflow of capital, the assets of Huaan Gold ETF surpassed 100 billion yuan for the first time after the market close on January 14 and continued to grow to 101.181 billion yuan on January 15. Simultaneously, Bosera Gold ETF, E Fund Gold ETF, Guotai Gold ETF, ChinaAMC Gold ETF, ICBC Credit Suisse Gold ETF, and Fullgoal Shanghai Gold ETF also hold substantial assets. As of January 15, the assets of these six products were 43.873 billion yuan, 38.387 billion yuan, 32.698 billion yuan, 13.273 billion yuan, 7.296 billion yuan, and 6.656 billion yuan, respectively. Overall, as of January 15, the combined assets of the 14 gold ETFs in the market totaled 263.061 billion yuan, an increase of over 21 billion yuan from the 241.561 billion yuan recorded on December 31, 2025. Taking a longer-term view, as of January 15, 2026, the total assets of these 14 gold ETFs have increased by over 190 billion yuan in the past year, representing a growth rate of nearly three times. Behind this growth, the formidable capital-attracting capability of gold ETFs cannot be overlooked. According to Wind statistics, as of January 15, 2026, the net inflow into the aforementioned 14 gold ETFs over the past year totaled 123.166 billion yuan. Among them, Huaan Gold ETF, Guotai Gold ETF, Bosera Gold ETF, and E Fund Gold ETF were the primary magnets for capital, attracting net inflows of 43.786 billion yuan, 17.325 billion yuan, 16.421 billion yuan, and 14.515 billion yuan, respectively. Additionally, ChinaAMC Gold ETF, ICBC Credit Suisse Gold ETF, and Fullgoal Shanghai Gold ETF also attracted significant inflows, amounting to 9.478 billion yuan, 4.739 billion yuan, and 4.427 billion yuan, respectively. Furthermore, the impressive return performance of gold ETFs has also contributed to their asset growth. From January 15, 2025, to January 15, 2026, the returns of all 14 gold ETFs exceeded 61%. "The strong performance of the international gold price provided crucial support," pointed out Wu Yuening, a senior analyst at Morningstar (China) Fund Research Center. Over the past year, influenced by a combination of factors including declining US real interest rates, rising international geopolitical risks, and a continuously expanding gold supply-demand gap, international gold prices have climbed steadily. Since gold ETFs closely track gold prices, they have also risen significantly, delivering considerable returns to investors. "The sustained rise in gold prices, global trade disputes and international geopolitical tensions, and high volatility in financial markets have led investors to choose gold ETFs based on safe-haven demand. Simultaneously, the inherent advantages of gold ETFs, such as investment convenience and low costs, have also attracted a large number of investors," Wu Yuening further analyzed. The pace of gold price increases may slow. While capital continues to pour in, the managers of gold ETFs are beginning to enhance liquidity and risk management. Recently, E Fund Management Co., Ltd. announced that due to operational needs of the fund's investment activities, the company has decided to adjust the minimum subscription and redemption units for E Fund Gold ETF and the corresponding gold spot physical contract subscription and redemption considerations effective January 19, 2026, and to amend the relevant clauses in the fund's prospectus accordingly. Specifically, starting January 19, 2026, the minimum subscription and redemption unit for cash and physical subscriptions/redemptions of the fund will be adjusted from 300,000 units to 100,000 units, and the corresponding minimum subscription and redemption unit for gold spot physical contracts will be adjusted from 3,000 grams to 1,000 grams. The gold spot physical contract type used in the subscription/redemption consideration will solely be the Shanghai Gold Exchange's Au99.99 spot physical contract, and will no longer include the Shanghai Gold Exchange's Au99.95 spot physical contract. Back in 2025, Huaan Fund, Bosera Fund, and Guotai Fund had also made similar adjustments to their respective gold ETFs. "Fund companies adjusting the subscription and redemption considerations for gold spot physical contracts is likely a consideration to respond to market changes, ensuring the stable operation of the fund and protecting the interests of existing investors," explained Wu Yuening. For instance, given the high volatility in the gold spot market, adjusting the considerations can prevent unreasonable arbitrage activities and effectively safeguard the security of the fund's assets. For investors, investing in gold funds requires a full understanding of the risks and making prudent decisions based on one's own risk tolerance. Wu Yuening recommends that investors interested in gold ETFs need to closely monitor the trends in the gold market. At the same time, they should understand the fund fees, including management fees and custody fees, as these costs will impact investment returns. Furthermore, it is essential to always pay attention to announcements released by the fund company, such as changes related to subscription and redemption arrangements. In the view of Liang Pussen, Portfolio Manager of the Qianhai Kaiyuan Gold ETF, considering that the current gold price has already partially reflected the core narratives of the interest rate cutting cycle and "de-dollarization," coupled with increased profit-taking pressure after the recent sharp short-term rally, the probability of sustained and significant further surges has noticeably decreased. Investors need to abandon short-term speculative thinking, anchor reasonable return expectations, and return to the essence of gold as an asset allocation tool—using it as a medium- to long-term instrument to hedge against inflation and systemic risks and to smooth portfolio volatility. Simultaneously, considering that gold is a non-yielding asset, he advises investors to control its allocation percentage. "Calculations from an asset allocation perspective suggest that a 10% to 20% allocation ratio is sufficient to effectively optimize a portfolio. For investors currently holding a low allocation to gold, adopting a dollar-cost averaging approach to build positions gradually can help smooth entry costs and reduce timing risks." On the other hand, regarding the future trajectory of the gold market, a representative from Bosera Fund judges that, in the short term, with the phased easing of Sino-US economic and trade relations reducing uncertainty, and combined with the high level of short-term crowding in gold positions, the risk premium for gold may gradually converge over the coming period, potentially leading to a slowdown in the pace of gold price increases. "From a medium- to long-term perspective, driven by the purposes of inflation hedging and避险, central banks worldwide have been increasing their gold reserves in recent years, and this trend is not yet over. We are optimistic about the future trend of gold prices," they stated. Huaan Fund believes that the U.S. Federal Reserve remains in a major interest rate cutting cycle. If a dovish chair is elected, the Fed's pace of rate cuts could become more aggressive, which would potentially benefit gold. Beyond accommodative monetary policy, the U.S. is also in a phase of expansionary fiscal policy, with U.S. Treasury credit risks persisting. Continued central bank gold purchases amid de-dollarization, combined with high global investment demand for gold ETFs, lead them to remain optimistic about the allocation value of gold in 2026.
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