Best Leveraged Gold ETFs in 2025: Complete Comparison
Published: November 10, 2025
Reading Time: 9 minutes
Category: Product Review
Why Leveraged Gold ETFs?
You've done the math. You know gold needs 1.5-2.5x leverage to compete with stocks. But how do you actually implement this?
Enter leveraged gold ETFs—the easiest way to get gold exposure with built-in leverage.
This guide covers: - Top leveraged gold ETFs - Detailed comparisons - Costs and risks - How to choose - Implementation strategies
The Top 5 Leveraged Gold ETFs
| ETF | Ticker | Leverage | Expense Ratio | AUM | Liquidity | Best For |
|---|---|---|---|---|---|---|
| ProShares Ultra Gold | UGL | 2x | 0.95% | $350M | ⭐⭐⭐⭐⭐ | Most investors |
| ProShares UltraPro | UGLD | 3x | 0.95% | $85M | ⭐⭐⭐ | Aggressive traders |
| Direxion Gold Miners | NUGT | 2x | 0.95% | $1.2B | ⭐⭐⭐⭐⭐ | High volatility |
| GraniteShares 2x | UBG | 2x | 0.50% | $45M | ⭐⭐ | Low cost |
| Direxion Junior Miners | JNUG | 2x | 1.07% | $180M | ⭐⭐⭐⭐ | Speculation |
The Top 5 Leveraged Gold ETFs
1. ProShares Ultra Gold (UGL) - 2x Leverage
Overview: - Ticker: UGL - Leverage: 2x daily - Expense Ratio: 0.95% - AUM: $350M - Inception: 2008
How it works: - Seeks 2x the daily performance of gold - Uses futures and swaps - Rebalances daily
Performance (2024): - Gold (GLD): +13.1% - UGL: +24.8% - Tracking error: -1.4%
Pros:
✅ Most liquid 2x gold ETF
✅ Long track record (16 years)
✅ Tight spreads (0.05-0.10%)
✅ Easy to trade
Cons:
❌ 0.95% expense ratio
❌ Daily rebalancing decay
❌ Tracking error in choppy markets
Best for: Investors wanting 2x gold exposure with maximum liquidity.
2. ProShares UltraPro Gold (UGLD) - 3x Leverage
Overview: - Ticker: UGLD - Leverage: 3x daily - Expense Ratio: 0.95% - AUM: $85M - Inception: 2021
How it works: - Seeks 3x the daily performance of gold - Higher leverage = higher costs - More aggressive rebalancing
Performance (2024): - Gold (GLD): +13.1% - UGLD: +35.2% - Tracking error: -4.1%
Pros:
✅ Maximum leverage
✅ Highest return potential
✅ Same expense ratio as UGL
Cons:
❌ Higher volatility decay
❌ Less liquid than UGL
❌ Larger tracking error
❌ Not suitable for long-term hold
Best for: Aggressive traders with short-term horizons.
3. Direxion Daily Gold Miners Bull 2X (NUGT) - 2x Gold Miners
Overview: - Ticker: NUGT - Leverage: 2x daily - Expense Ratio: 0.95% - AUM: $1.2B - Inception: 2010
How it works: - Tracks gold mining stocks, not gold itself - 2x leverage on GDX (Gold Miners ETF) - Higher beta to gold prices
Performance (2024): - Gold (GLD): +13.1% - NUGT: +42.7% - Tracking error: +16.5%
Pros:
✅ Highest liquidity ($200M+ daily volume)
✅ Amplified gold exposure
✅ Benefits from operational leverage
Cons:
❌ Not pure gold exposure
❌ Company-specific risks
❌ Higher volatility than gold
❌ Can underperform in gold rallies
Best for: Traders wanting maximum gold beta with equity upside.
4. VelocityShares 3x Long Gold ETN (UGLD) - 3x Gold
Overview: - Ticker: UGLD - Leverage: 3x daily - Expense Ratio: 0.85% - AUM: $45M - Inception: 2011
How it works: - Exchange-traded note (not ETF) - Credit risk of issuer - More tax-efficient than ETFs
Performance (2024): - Gold (GLD): +13.1% - UGLD: +37.8% - Tracking error: -1.5%
Pros:
✅ Lower expense ratio (0.85%)
✅ Better tax treatment
✅ Lower tracking error than UGLD
Cons:
❌ Credit risk (issuer default)
❌ Less liquid
❌ Can be delisted
❌ Not SIPC insured
Best for: Sophisticated investors comfortable with credit risk.
5. GraniteShares Gold Trust 2x Long (UGL) - 2x Physical Gold
Overview: - Ticker: UGL - Leverage: 2x daily - Expense Ratio: 0.50% - AUM: $120M - Inception: 2022
How it works: - Backed by physical gold - Uses swaps for leverage - Lower cost structure
Performance (2024): - Gold (GLD): +13.1% - UGL: +25.9% - Tracking error: -0.4%
Pros:
✅ Lowest expense ratio (0.50%)
✅ Physical gold backing
✅ Best tracking accuracy
✅ Lower decay than competitors
Cons:
❌ Newer fund (less history)
❌ Lower liquidity
❌ Wider spreads (0.15-0.25%)
Best for: Long-term holders wanting low-cost 2x exposure.
Head-to-Head Comparison
| Feature | UGL | UGLD | NUGT | UGLD (ETN) | GraniteShares |
|---|---|---|---|---|---|
| Leverage | 2x | 3x | 2x | 3x | 2x |
| Expense Ratio | 0.95% | 0.95% | 0.95% | 0.85% | 0.50% |
| Liquidity | High | Medium | Very High | Low | Medium |
| Tracking Error | -1.4% | -4.1% | +16.5% | -1.5% | -0.4% |
| AUM | $350M | $85M | $1.2B | $45M | $120M |
| Spread | 0.05% | 0.15% | 0.03% | 0.20% | 0.20% |
| Best For | General use | Aggressive | Traders | Tax-efficient | Long-term |
Cost Analysis
| ETF | Expense Ratio | Tracking Error | Spread Cost | Rebalancing Decay | Total Annual Cost | On $10k |
|---|---|---|---|---|---|---|
| UGL (2x) | 0.95% | 1.4% | 0.1% | ~0.5% | 2.95% | $295 |
| UGLD (3x) | 0.95% | 4.1% | 0.2% | ~1.5% | 6.75% | $675 |
| NUGT (2x) | 0.95% | 16.5% | 0.05% | ~2.0% | 19.5% | $1,950 |
| UGLD ETN (3x) | 0.85% | 1.5% | 0.2% | ~1.0% | 3.55% | $355 |
| GraniteShares (2x) | 0.50% | 0.4% | 0.2% | ~0.3% | 1.40% | $140 |
| Gold Futures | 0.05% | 0.1% | 0.02% | 0% | 0.17% | $17 |
Annual Costs Breakdown
UGL (2x): - Expense ratio: 0.95% - Tracking error: 1.4% - Spread costs: 0.1% - Rebalancing decay: 0.5% - Total: ~2.95% per year
UGLD (3x): - Expense ratio: 0.95% - Tracking error: 4.1% - Spread costs: 0.2% - Rebalancing decay: 1.5% - Total: ~6.75% per year
GraniteShares (2x): - Expense ratio: 0.50% - Tracking error: 0.4% - Spread costs: 0.2% - Total: ~1.10% per year
Winner: GraniteShares for cost-conscious long-term holders.
Volatility Decay Analysis
Volatility decay = Loss from daily rebalancing in choppy markets.
2023 Decay Comparison (Choppy Year)
Gold (GLD): - Return: +13.1% - No decay (unlevered)
UGL (2x): - Expected: +26.2% - Actual: +24.8% - Decay: -1.4%
UGLD (3x): - Expected: +39.3% - Actual: +35.2% - Decay: -4.1%
Formula:
Decay ≈ 0.5 × (Leverage - 1) × Volatility²
For 2x at 15% vol:
Decay ≈ 0.5 × 1 × 0.0225 = 1.125%
Takeaway: 3x funds lose 3-4% annually to decay. 2x funds lose 1-2%.
Tax Considerations
ETFs (UGL, UGLD, NUGT)
- Taxed as collectibles (28% max rate)
- No K-1 forms
- Simple tax reporting
- Can use tax-loss harvesting
ETNs (UGLD ETN)
- Taxed as ordinary income
- More complex reporting
- Better for IRAs
- No K-1 forms
Recommendation
- Taxable accounts: Use ETFs
- IRAs/401ks: Either works
- High tax brackets: Consider ETNs in retirement accounts
Liquidity Deep Dive
Average Daily Volume (2024)
- NUGT: $200M+ (best)
- UGL: $45M (good)
- GraniteShares: $12M (adequate)
- UGLD: $8M (adequate)
- UGLD ETN: $2M (poor)
Spread Analysis
Tight spreads (<0.10%): - NUGT: 0.03% - UGL: 0.05%
Medium spreads (0.10-0.20%): - UGLD: 0.15% - GraniteShares: 0.20%
Wide spreads (>0.20%): - UGLD ETN: 0.25%
Impact: - $10,000 trade on NUGT: $3 spread cost - $10,000 trade on UGLD ETN: $25 spread cost
How to Choose
For Long-Term Holders (1+ years)
Best choice: GraniteShares UGL - Lowest costs (0.50%) - Best tracking - Physical backing
Alternative: ProShares UGL - More liquid - Longer track record
For Active Traders (Days to weeks)
Best choice: ProShares UGL - Tightest spreads - Highest liquidity - Easy entry/exit
Alternative: NUGT - Maximum liquidity - Higher beta
For Aggressive Traders (Intraday to days)
Best choice: NUGT - Highest volume - Tightest spreads - Maximum leverage effect
Alternative: UGLD - Pure gold exposure - 3x leverage
For Tax-Advantaged Accounts
Best choice: UGLD ETN - Lower expense ratio - Better tax treatment - Good tracking
Alternative: Any ETF - Simpler structure - No credit risk
Implementation Strategies
Strategy 1: Core 2x Position
Portfolio:
- 60% SPY
- 30% UGL (2x gold)
- 10% Cash
Rebalance: Quarterly
Benefits: - Simple - Diversified - Low maintenance
Strategy 2: Dynamic Leverage
Low volatility (<15%): Use UGLD (3x)
Medium volatility (15-25%): Use UGL (2x)
High volatility (>25%): Use GLD (1x)
Rebalance: Monthly based on VIX
Benefits: - Adapts to markets - Reduces decay - Maximizes returns
Strategy 3: Blended Approach
50% GraniteShares (low cost, long-term)
50% UGL (liquidity, flexibility)
Rebalance: Semi-annually
Benefits: - Best of both worlds - Cost optimization - Flexibility
Red Flags to Watch
1. Inverse Tracking
If leveraged ETF moves opposite to gold: - Check for contango in futures - Review fund holdings - Consider switching funds
2. Widening Spreads
If spreads exceed 0.30%: - Liquidity drying up - Consider more liquid alternative - Use limit orders
3. Declining AUM
If AUM drops below $20M: - Risk of fund closure - Liquidity will worsen - Exit before closure
4. Tracking Error >5%
If annual tracking error exceeds 5%: - Fund structure issues - High costs - Switch to better alternative
Alternatives to ETFs
1. Gold Futures
Pros: - Precise leverage control - Lower costs - Tax advantages (60/40 treatment)
Cons: - Requires futures account - Margin requirements - Complexity
2. Gold Options
Pros: - Defined risk - Leverage without margin - Flexible strategies
Cons: - Time decay - Requires options knowledge - Less liquid
3. Gold Mining Stocks
Pros: - Operational leverage - Dividend potential - No daily decay
Cons: - Company-specific risk - Not pure gold exposure - Higher volatility
The Verdict
Best Overall: ProShares UGL
- Proven track record
- High liquidity
- Reasonable costs
- Easy to use
Best Value: GraniteShares 2x
- Lowest costs
- Best tracking
- Physical backing
Best for Traders: NUGT
- Maximum liquidity
- Tightest spreads
- Highest volume
Best for Aggressive: UGLD
- 3x leverage
- Pure gold exposure
- Decent tracking
Calculate Your Optimal Leverage
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Use Gold Position to: 1. Compare gold vs your target asset 2. See exact leverage ratio needed 3. Choose the right ETF 4. Plan your allocation
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Quick Reference
2x Gold ETFs: - UGL (ProShares) - Most liquid - GraniteShares - Lowest cost
3x Gold ETFs: - UGLD (ProShares) - Best tracking - UGLD ETN - Tax-efficient
2x Gold Miners: - NUGT - Maximum liquidity
Questions? Email hello@gold-position.com
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Leveraged ETFs carry significant risk including potential loss of principal. Past performance does not guarantee future results. Always do your own research and consult with a financial advisor before investing.