Gold ETF vs Gold ETC: Why the Real Gold ETF Doesn't Exist — and How the Tax Rule Works

You're looking for a gold ETF — and everywhere you only find gold ETCs? That's not an accident or a mistake. A true gold ETF simply can't be bought in Germany. Here's why, what the difference is, and why this exact distinction decides how much tax you pay — in plain language, with nothing to sell you.

Why there's no real gold ETF

An ETF (Exchange Traded Fund) in Europe is bound by the so-called UCITS rules. One of those rules requires diversification: a fund may not put its entire assets into a single holding. But gold is exactly that — one single commodity. So in the EU there can be no fund made up of gold alone. A "gold ETF" in the literal sense is legally impossible.

What exists instead is the gold ETC (Exchange Traded Commodity). On the exchange it looks like an ETF, trades the same way, and tracks the gold price — but legally it's something different. That difference is the heart of this article.

ETF vs ETC — the difference that matters

The distinction sounds technical, but it has two very concrete consequences for you: safety and tax.

An ETF is legally Sondervermögen (segregated "special assets"). That means: if the provider goes bankrupt, the fund's assets still belong to you and are protected from creditors. (For more on why ETFs are structurally safe, see How safe is your money in an ETF?)

An ETC, by contrast, is a bearer debt security — essentially a promise to pay from the issuer. It is not Sondervermögen. That may sound riskier, and legally it is: you carry issuer risk. In practice, reputable providers reduce that risk by backing the ETC with physical gold held in vaults and audited regularly. Still, the automatic insolvency protection of an ETF does not apply to an ETC in the same way.

The tax advantage — this is the real reason

Now comes the part many people miss — and it's worth real money.

On ordinary shares, equity ETFs, and even Swiss gold ETFs, you pay Abgeltungsteuer (German capital-gains tax) on your gains: 25% plus the solidarity surcharge, together roughly 26.375% (a little more with church tax).

With a gold ETC that carries a physical delivery claim, it's different. Germany's Federal Fiscal Court (Bundesfinanzhof) ruled that such an ETC is treated for tax purposes like physical gold (the foundational rulings on Xetra-Gold: VIII R 4/15 and VIII R 35/14 of 12 May 2015; later extended to comparable products). The Finance Ministry confirmed this through decrees.

The result: if you hold the gold ETC for more than one year, your gains on sale are tax-free. No Abgeltungsteuer. On a gain of several thousand euros, that's a meaningful difference.

The condition matters: only ETCs that carry a gram-precise claim to delivery of the physical gold are tax-free. ETCs without that delivery claim — and Swiss gold ETFs too — are subject to normal capital-gains tax. This is exactly the feature to check before you buy.

For completeness: if you sell within the first year, the gain is taxable — here a de-minimis limit for private sale transactions applies (2026: €1,000 per year).

Which gold ETCs qualify?

Among the ETCs popular in Germany that carry a delivery claim are, for example:

• Xetra-Gold (WKN A0S9GB) — the largest German gold ETC, issued by Deutsche Börse Commodities. Delivery possible from 1 gram. Note: many custodian banks charge an annual storage fee here (often around 0.36%).
• EUWAX Gold II (WKN EWG2LD) — from a subsidiary of Börse Stuttgart, also with a delivery claim and often without extra storage costs.

This list is not a buy recommendation, just a pointer to which products meet the tax-decisive feature. Always check the current terms and the delivery claim directly with the provider before buying.

How much gold belongs in a portfolio?

Here's an honest framing that many marketing texts leave out: gold is a stabiliser, not a growth asset. Over long periods, gold has delivered considerably less than a broadly diversified equity portfolio — sometimes not even half. Its value lies elsewhere: gold often moves differently from stocks and can soften a portfolio's swings, especially in a crisis.

That's why a common rule of thumb is: no more than around 10% of your assets in gold. Useful as a hedge on the side — but not as the main building block for growing wealth.

In short

• A true gold ETF doesn't exist in Germany — UCITS rules forbid funds made of a single commodity.
• What you can buy is a gold ETC. It tracks the gold price but is a debt security, not Sondervermögen — so it carries issuer risk, usually backed by physical gold.
• The big upside: with an ETC that has a delivery claim, gains are tax-free after one year — unlike equity ETFs or Swiss gold ETFs.
• Gold is a side ingredient, not the engine: as rough guidance, at most around 10% of the portfolio.

Still unsure how gold, equity ETFs, and the rest fit together in your case? Our free questionnaire gives you a first orientation in a few minutes — no sign-up, no ads, no commission.

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This is educational material, not tax or financial advice. Tax rules depend on your personal situation and can change over time. For specific tax questions, consult a licensed tax adviser.