GLD vs IAU: SPDR Gold Shares vs iShares Gold Trust Comparison
Compare GLD (SPDR Gold Shares) and IAU (iShares Gold Trust) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: IAU 0.25% vs GLD 0.4% (IAU is 0.15%p cheaper)
- 2Holdings: GLD 1 vs IAU 1
- 3Issuer: GLD (State Street(SPDR)) vs IAU (BlackRock(iShares))
Conclusion
GLD and IAU each have different strengths, so the choice depends on your investment objectives. Choose the one with lower fees if cost is a priority, or the one with higher yield if income is your goal.
| Category | GLD | IAU |
|---|---|---|
| Fund Name | SPDR Gold Shares | iShares Gold Trust |
| Current Price | ... | ... |
| Category | Bonds & Commodities | Bonds & Commodities |
| Expense Ratio | 0.4% | 0.25% |
| Dividend Yield | 0% | 0% |
| Holdings | 1 | 1 |
GLD Top Holdings
- 1. Physical Gold
IAU Top Holdings
- 1. Physical Gold
GLD Features
- •Gold investing
- •Safe-haven asset
- •Inflation hedge
- •Crisis response
IAU Features
- •Gold investing
- •Inflation hedge
- •Safe-haven asset
- •Low cost
Pros & Cons
GLD
Advantages
- ✓ Portfolio hedge
- ✓ Inflation defense
- ✓ Benefits from dollar weakness
Disadvantages
- ⚠ No dividends
- ⚠ Storage costs
- ⚠ Opportunity cost
IAU
Advantages
- ✓ Lower expense ratio than GLD
- ✓ Inflation defense
- ✓ Portfolio diversification
Disadvantages
- ⚠ No interest income
- ⚠ Storage costs
- ⚠ Disadvantaged during dollar strength
Investment Strategy
Best For: GLD
Allocate 5-10% for crisis hedging; increase during economic uncertainty
Best For: IAU
Allocate 5-10% of portfolio to gold; alternative to GLD
Detailed Analysis
GLD (SPDR Gold Shares) and IAU (iShares Gold Trust) Both belong to the Bonds & Commodities category, covering a similar investment area but with different strategies. GLD: SPDR Gold Shares (GLD) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.40%. The portfolio holds 1 securities. With an expense ratio of 0.4% and dividend yield of 0%, its top holdings include Physical Gold. Key features include Gold investing, Safe-haven asset, with Portfolio hedge being a major advantage. IAU: iShares Gold Trust (IAU) is an exchange-traded fund that provides investors with exposure to bonds, gold, and other commodities. It carries an expense ratio of 0.25%. The portfolio holds 1 securities. With an expense ratio of 0.25% and dividend yield of 0%, top holdings include Physical Gold. Notable features are Gold investing, Inflation hedge, with Lower expense ratio than GLD as a core strength. In terms of expense ratio, IAU is 0.15%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
GLD is suitable for Allocate 5-10% for crisis hedging; increase during economic uncertainty, while IAU is suitable for Allocate 5-10% of portfolio to gold; alternative to GLD. Since both ETFs are in the same category, choosing one for your portfolio is more efficient. Base your decision on expense ratio, liquidity, and issuer preference. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both GLD and IAU are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
GLD vs IAU Investment Guide
Both GLD and IAU are popular US ETFs, but they differ in investment strategy and portfolio role. GLD has an expense ratio of 0.4%, while IAU charges 0.25%, giving IAU a cost advantage. In terms of dividend yield, GLD offers 0% while IAU offers 0%, both offering similar dividend levels.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.