GLD vs IAU: Which Gold ETF Should You Buy?
GLD and IAU are the two largest physical gold ETFs in the world. Both hold gold bullion in vaults and aim to track the spot price of gold. GLD (SPDR) was the first gold ETF, launched in 2004, and remains the most liquid. IAU (iShares) launched in 2005 with a lower expense ratio and smaller share price, making it more accessible for smaller portfolios.
Key Differences
- IAU has lower TER: 0.25% vs GLD's 0.40% — IAU saves 0.15% annually (significant over decades)
- GLD has higher liquidity and tighter bid-ask spreads — better for large trades and institutional use
- IAU share price is ~1/10th of GLD — easier to buy precise allocations with smaller amounts
- Both track gold spot price with minimal tracking error — physical gold backing is near-identical
- GLD has ~$60B AUM vs IAU ~$30B — both extremely liquid for retail investors
Live Comparison
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Bottom Line
For most retail investors, IAU is the better choice: same gold exposure at 0.15% lower annual cost. GLD wins only on liquidity for very large trades. Unless you're trading millions at once, IAU's cost advantage compounds meaningfully over a 20+ year holding period.
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Disclaimer: This comparison is for informational and educational purposes only. It does not constitute investment advice. Past performance does not guarantee future results. ETF data is sourced from Yahoo Finance and issuer websites. Always verify current data before making investment decisions.