🤝 BFF Take
GLDM Wins for Long-Term Holders — GLD Only for Options Traders
GLD (SPDR Gold Shares) and GLDM (SPDR Gold MiniShares) are both State Street products backed by physical gold bars held in secured vaults. GLD charges 0.40%; GLDM charges 0.10% — a 30 basis point difference that amounts to $300/year on every $100,000 invested. State Street launched GLDM in 2018 specifically because individual investors were rightfully asking why they should pay 0.40% for gold exposure. GLDM owns one-tenth as much gold per share as GLD (lower share price, more accessible), but each share of GLDM is backed by the same physical gold stored the same way. The only reason to own GLD over GLDM: if you trade gold options (GLD has a far deeper options market). For individual investors holding gold long-term, GLDM is the obvious choice.
📋 Quick Takeaways
🥇Both hold physical gold bars in secured vaults — identical underlying asset, different cost structure
💰GLDM costs 0.10% vs GLD's 0.40% — 30 basis points cheaper saves $300/year per $100K
🎯GLD has a much larger options market — it's the only choice if you use options strategies on gold
📊 Data-Based Take: GLDM has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
GLDM
SPDR Gold MiniShares Trust
📋 GLD vs GLDM — Key Facts Side by Side
| Metric |
GLD |
GLDM |
| Fund Name |
SPDR Gold Shares |
SPDR Gold MiniShares Trust |
| Issuer |
State Street |
State Street |
| Tracks Index |
Physical Gold |
Physical Gold |
| Expense Ratio |
0.40% |
0.10% ✓ |
| Cost per $10K/yr |
$40.00 |
$10.00 |
| AUM |
$80B |
$15B |
| Holdings |
1 |
1 |
| Inception |
2004 |
2018 |
| 1-Year Return |
+28.40% |
+28.70% |
| 3-Year Return |
+14.20% |
+14.50% |
| 5-Year Return |
+13.80% |
+14.10% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 GLD vs GLDM — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy GLD or GLDM?
Choose if...
GLD
- You want a hedge against inflation and market drawdowns
- You already use State Street and prefer staying within their fund family
Choose if...
GLDM
- You want the lowest fees — saves ~$30/yr per $10K vs GLD
- You want a hedge against inflation and market drawdowns
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❓ GLD vs GLDM — Frequently Asked Questions
What is the difference between GLD and GLDM?
GLD and GLDM are both State Street ETFs backed by physical gold. The key difference is expense ratio: GLD charges 0.40% annually while GLDM charges 0.10%. Both are secured by actual gold bars held in bank vaults. GLDM owns less gold per share (1/100 oz vs GLD's 1/10 oz) giving it a lower share price. For buy-and-hold investors, GLDM is the better choice purely due to lower fees.
Should I switch from GLD to GLDM?
If you hold GLD in a tax-advantaged account (IRA, 401k), switching to GLDM is straightforward — you'll save 30 basis points annually with no tax consequences. In a taxable account, selling GLD could trigger capital gains taxes. Gold held over a year is taxed as a collectible (28% maximum rate for high earners), so calculate whether the tax drag exceeds the fee savings before switching. For new gold purchases, always buy GLDM.
Is GLDM or IAU better?
IAU (iShares Gold Trust) charges 0.25% — cheaper than GLD but more expensive than GLDM. IAU has significantly more assets (~$30B+) and better options market liquidity than GLDM. Between GLDM (0.10%) and IAU (0.25%), GLDM wins on cost for long-term holders. IAU is the middle ground for those who want slightly better liquidity than GLDM at a lower fee than GLD.
Does GLD or GLDM hold actual physical gold?
Yes — both are physically backed by gold bars stored in HSBC's London vaults (and sub-custodian vaults). The gold is audited by an independent firm. Unlike gold mining stocks or gold futures ETFs, GLD and GLDM represent direct ownership of physical gold. The price tracks the spot gold price minus the expense ratio accrual.
Why do investors hold gold in a portfolio?
Gold traditionally serves as an inflation hedge and safe-haven asset. It has historically retained purchasing power over very long periods and tends to rise during financial crises or periods of currency debasement. However, gold pays no dividends or interest — it's a non-productive asset. Most allocations to gold in diversified portfolios range from 0-10%. Academic research on gold's portfolio benefits is mixed; it depends heavily on the time period examined.
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ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.