Which Gold ETF Is the Better Buy: iShares' IAU or State Street's GLD?
Both funds track physical gold with nearly identical returns, but IAU's lower 0.25% expense ratio could compound into meaningful savings over decades for buy-and-hold investors.
iShares Gold Trust (IAU) and SPDR Gold Shares (GLD) are nearly identical investments in physical gold bullion prices, differing primarily in their annual fees. For long-term investors seeking portfolio diversification, the lower fee of the iShares fund makes it an attractive option. Both exchange-traded funds offer an efficient way to gain exposure to gold without the hassle of personal storage.
To determine which trust may suit your investment goals better, it's essential to analyze their annual fees, overall size, and historical volatility. Beta, a measure of price volatility relative to the S&P 500, is calculated from monthly returns over the fund's history, up to five years. The 1-year return reflects the total return over the past 12 months.
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