IAU vs GLD: Gold ETF Showdown Highlights Cost Advantage
The choice between two popular gold ETFs - iShares' IAU and State Street's GLD - comes down to cost. Both funds track physical gold bullion prices, but their expense ratios differ significantly.
iShares Gold Trust (IAU) has an annual fee of 0.25%, while SPDR Gold Shares (GLD) charges 0.4%. This may not seem like a lot, but over time, the difference can add up to substantial savings for long-term investors.
The iShares fund is also more affordable in terms of its share price, currently at $82.28 compared to GLD's $398.96. However, GLD's massive scale and high average daily trading volume make it a preferred choice for institutional traders.
In the end, the decision comes down to individual investment goals. For most long-term buy-and-hold investors, IAU's lower fee makes it the better buy.