Do gold ETFs pay dividends?

No. GLD, IAU, and GLDM hold physical gold, which produces no income. Your entire return comes from changes in the price of gold, minus the fund’s expense ratio. Because there is no dividend to offset the fee, the expense ratio is the full ongoing cost of holding, which is why the cost difference between these three matters over time.

🥇 GLD vs IAU vs GLDM · Gold ETF Comparison

GLD vs IAU vs GLDM: Same Gold, Four Times the Fee Gap

Q: What is the difference between GLD, IAU, and GLDM?

All three hold physical gold bullion stored in vaults, so the underlying asset is identical. The difference is cost and structure. GLD (SPDR Gold Shares) charges 0.40% and is the largest and most liquid gold ETF. IAU (iShares Gold Trust) charges 0.25%. GLDM (SPDR Gold MiniShares) charges 0.10%, the cheapest of the three, and trades at a lower share price designed for retail buyers. GLD and GLDM are both from State Street; IAU is from iShares.

Q: Which gold ETF is the cheapest?

GLDM is the cheapest at 0.10%, followed by IAU at 0.25% and GLD at 0.40%. On a $50,000 position, that is about $50 a year for GLDM versus $200 for GLD, a $150 annual difference for holding the same physical gold. For long-term buy-and-hold investors, the lower fee makes GLDM or IAU more cost-efficient than GLD.

Q: Is GLDM the same as GLD?

They hold the same physical gold and come from the same issuer, State Street, but they are separate funds. GLDM (GLD MiniShares) was launched in 2018 as a lower-cost, lower-share-price version aimed at retail investors. It charges 0.10% versus GLD’s 0.40%. The main trade-off is that GLDM has less trading volume and a smaller options market than GLD.

All three hold physical gold in a vault. The bullion is identical. What changes is the expense ratio, which runs from 0.10% to 0.40%, and the liquidity behind each fund.

💰 0.10% to 0.40% fee range 🥇 Identical physical gold ⚡ Liquidity vs cost

GLD vs IAU vs GLDM: Side-by-Side

	GLD	IAU	GLDM
Full name	SPDR Gold Shares	iShares Gold Trust	SPDR Gold MiniShares
Expense ratio	0.40%	0.25%	0.10%
Holds	Physical gold	Physical gold	Physical gold
Issuer	State Street	iShares	State Street
AUM	$72B	$35B	$10B
Liquidity	Deepest	High	Moderate
Options market	Deep	Some	Limited
Inception	2004	2005	2018
Fee on $50,000	$200/yr	$125/yr	$50/yr

All three track the spot price of gold and hold physical bullion. Returns differ only by the expense ratio drag. Past performance does not guarantee future results.

The BFF Take

The gold inside these three funds is the same metal in the same kind of vault. That is the whole reason cost is the deciding factor: you are paying different fees for an identical asset. GLDM charges 0.10%, the cheapest, and on a $50,000 position that is $50 a year versus $200 for GLD. For a long-term investor holding gold as a portfolio hedge, GLDM or IAU keeps more of the return. GLD is not a mistake, but you only pay its 0.40% for a reason: it is the most liquid gold ETF with a deep options market, which active traders and large institutions need. Here is the part many investors miss: GLDM comes from State Street, the same issuer as GLD. It is the deliberately cheaper sibling built for retail buyers. If you are buying and holding, start with GLDM.

Which Gold ETF Fits You

GLDM

Best for

Lowest cost at 0.10%
Long-term buy-and-hold gold
Retail investors and smaller positions
Most people holding gold as a hedge

IAU

Best for

Low cost at 0.25% with strong liquidity
iShares platform preference
A middle ground on cost and volume
Long-term holders wanting more trading depth than GLDM

GLD

Best for

Deepest liquidity of any gold ETF
Active trading and large positions
Options strategies on gold
Institutional execution needs

Frequently Asked Questions

What is the difference between GLD, IAU, and GLDM?

All three hold physical gold bullion in vaults, so the underlying asset is identical. GLD charges 0.40% and is the largest and most liquid. IAU charges 0.25%. GLDM charges 0.10%, the cheapest, and trades at a lower share price designed for retail buyers. GLD and GLDM are both from State Street; IAU is from iShares.

Which gold ETF is the cheapest?

GLDM is the cheapest at 0.10%, then IAU at 0.25% and GLD at 0.40%. On a $50,000 position, that is about $50 a year for GLDM versus $200 for GLD, a $150 annual gap for the same physical gold. For long-term holders, GLDM or IAU is more cost-efficient.

Why would anyone buy GLD if GLDM is cheaper?

Liquidity. GLD trades far more volume than GLDM or IAU and has a deep options market, which matters for active traders, large positions, and options strategies. For a long-term investor holding gold as a hedge, that liquidity premium is not worth the higher 0.40% fee, and GLDM or IAU serve better.

Is GLDM the same as GLD?

They hold the same physical gold from the same issuer, State Street, but they are separate funds. GLDM launched in 2018 as a lower-cost, lower-share-price version for retail investors at 0.10% versus GLD’s 0.40%. The trade-off is that GLDM has less trading volume and a smaller options market.

How are gold ETFs taxed?

In a taxable account, gold ETFs that hold physical bullion are generally taxed as collectibles, with a maximum long-term capital gains rate of 28%, higher than the rate on stocks. This applies to GLD, IAU, and GLDM equally. Holding them in an IRA can avoid that higher rate. Tax treatment varies by situation. This is general information, not tax advice.

Related Comparisons

All three funds track the price of physical gold and carry no income. Returns differ by the expense ratio. Gold ETFs holding bullion may be taxed as collectibles in taxable accounts. Past performance does not guarantee future results. Nothing on ETF BFF is personalized financial or tax advice. ETF BFF may receive compensation from brokerage partners referenced on this site.