Top 4 Gold ETFs to Buy | GLD, IAU, and More
Our top gold ETF picks ranked and compared. We analyze GLD, IAU, GDX, and other gold ETFs to help you choose the best way to invest in gold.
Gold serves as a cornerstone diversifier in any portfolio — acting as an inflation hedge and safe-haven asset during periods of uncertainty. You no longer need to buy physical gold bars; ETFs make it easy to gain gold exposure through a standard brokerage account. This guide compares the leading physical gold ETFs alongside gold mining equity ETFs.
Top 4 Gold ETFs Rankings
The world's largest gold ETF, offering unmatched liquidity and trading volume. GLD is the go-to gold investment vehicle for institutional investors and large funds.
BlackRock's gold ETF charges 0.15 percentage points less than GLD, giving long-term investors a meaningful cost advantage. Its lower per-share price also makes it more accessible for smaller investors.
Invests in the world's largest gold mining companies. When gold prices rise, mining stocks typically outperform physical gold due to operating leverage — offering amplified upside potential.
A Treasury Inflation-Protected Securities (TIPS) bond ETF that complements gold as an inflation hedge. Pairing TIP with a gold ETF can strengthen your portfolio's overall protection against rising prices.
Table of Contents
1. Gold ETFs vs. Physical Gold
Gold ETFs let you invest in gold without the hassle of storing and insuring physical bullion. GLD and IAU hold actual gold bullion in vaults, so their prices track the spot price of gold almost exactly. You avoid storage costs, insurance fees, and theft risk while still gaining direct exposure to gold price movements.
2. GLD vs. IAU: Which Should You Choose?
GLD is the world's largest gold ETF, offering the deepest liquidity and the tightest bid-ask spreads — making it the preferred choice of institutional investors. IAU charges a lower expense ratio (0.25% vs. 0.40%), giving it a meaningful cost advantage for long-term holders. Retail investors may also prefer IAU because its per-share price is lower, reducing the minimum investment required.
3. Gold Mining ETFs: The Case for GDX
GDX invests in the stocks of companies that mine gold, rather than gold itself. When gold prices rise, mining companies often see their profits grow disproportionately — producing a leveraged return relative to spot gold. However, this leverage cuts both ways: mining stocks carry additional operational and management risks, making GDX considerably more volatile than a physical gold ETF.
Key Investment Tips
- 1.Allocating 5–15% of your portfolio to gold can meaningfully improve diversification and reduce drawdowns.
- 2.Consider increasing your gold allocation during periods of rising inflation or heightened macroeconomic uncertainty.
- 3.Gold ETFs pay no dividends — your entire return comes from price appreciation, so factor this into your income planning.
- 4.Gold prices tend to rise when the U.S. dollar weakens, as gold is priced in dollars globally.
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