🤝 BFF Take
IAU for Holders, GLD for Traders
IAU is the better pick for long-term gold investors. It costs 0.25% vs GLD's 0.40% — on a $50,000 position over 20 years, that fee difference costs roughly $1,500 in additional fees (before compounding). GLD's only genuine advantage is liquidity: it trades 5–10x more daily volume than IAU, which benefits institutional traders and anyone running large options strategies. For a retail investor buying and holding gold as a portfolio hedge, IAU wins.
📋 Quick Takeaways
💰IAU costs 0.25% vs GLD's 0.40% — on $10K that's $15/year, or ~$500 over 20 years before compounding
🏦Both hold physical gold bullion in vaults — GLD via HSBC Bank, IAU via JPMorgan Chase
📊GLDM (SPDR Gold MiniShares) costs just 0.10% — worth considering for long-term holders who want to go even cheaper
📊 Data-Based Take: IAU 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
📋 GLD vs IAU — Key Facts Side by Side
| Metric |
GLD |
IAU |
| Fund Name |
SPDR Gold Shares |
iShares Gold Trust |
| Issuer |
State Street / World Gold Council |
BlackRock |
| Tracks Index |
Physical Gold (1/10 oz per share) |
Physical Gold (1/100 oz per share) |
| Expense Ratio |
0.40% |
0.25% ✓ |
| Cost per $10K/yr |
$40.00 |
$25.00 |
| AUM |
$80B+ |
$35B+ |
| Holdings |
1 |
1 |
| Inception |
2004 |
2005 |
| 1-Year Return |
+28.50% |
+28.35% |
| 3-Year Return |
+14.10% |
+13.95% |
| 5-Year Return |
+12.40% |
+12.25% |
| Avg Bid-Ask Spread |
0.02% |
0.02% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 GLD vs IAU — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy GLD or IAU?
Choose if...
GLD
- You want a hedge against inflation and market drawdowns
- You already use State Street / World Gold Council and prefer staying within their fund family
Choose if...
IAU
- You want the lowest fees — saves ~$15/yr per $10K vs GLD
- You want a hedge against inflation and market drawdowns
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❓ GLD vs IAU — Frequently Asked Questions
Is GLD or IAU backed by physical gold?
Yes, both hold physical gold bars in vaults. GLD's custodian is HSBC Bank. IAU's custodian is JPMorgan Chase. Both funds are audited regularly and their gold holdings are disclosed publicly. Neither involves gold futures or derivatives.
How much is the fee difference between GLD and IAU over time?
On $10,000 invested, the 0.15% annual fee difference is $15/year. Over 20 years with compounding, the total cost of GLD's higher fee is roughly $400–600 more than IAU on that position. On a $100,000 position the gap scales to $4,000–6,000 — a meaningful real-money difference.
Are there gold ETFs cheaper than IAU?
Yes. GLDM (SPDR Gold MiniShares) charges 0.10% and is also backed by physical gold, making it the cheapest major gold ETF. SGOL (Aberdeen Standard Physical Gold) charges 0.17%. For long-term holders who don't need GLD's institutional liquidity, GLDM is worth considering.
New to ETF investing? See answers to the most common ETF questions →
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.