Wealthy PotGLD vs GLDM: The Same Gold at a Quarter of the Fee
GLD and GLDM do exactly the same job: each one holds physical gold in a vault and lets you own a slice of it through a brokerage account. Both are State Street SPDR products. The difference is price. GLDM charges 0.10% a year; GLD charges 0.40%, four times as much. That raises the obvious question of why anyone still buys GLD, and the answer tells you which one you should own.
The Short Answer
- Same asset: both hold physical gold in vaults.
- GLDM is far cheaper: 0.10% against 0.40%, or $10 against $40 a year on $10,000.
- GLD is the trading tool: it is the older fund and has listed options. State Street's GLDM page shows no options.
- For buy-and-hold investors, GLDM usually wins on cost alone.
GLD vs GLDM Side by Side
| Feature | GLD | GLDM |
|---|---|---|
| Full name | SPDR Gold Shares | SPDR Gold MiniShares Trust |
| Expense ratio | 0.40% | 0.10% |
| Holds | Physical gold | Physical gold |
| Launched | November 18, 2004 | June 25, 2018 |
| Sponsor | World Gold Trust Services, LLC | WGC USA Asset Management Company, LLC |
| Gold custodians | HSBC Bank plc and JPMorgan Chase Bank | JPMorgan Chase Bank |
| Listed options | Yes | No (per State Street) |
Why the Same Family Runs Two Gold Funds
GLD launched in 2004; State Street calls it the first U.S.-traded gold ETF. Its listed options make it useful to active traders, who care more about trading flexibility than about a few tenths of a percent in annual fees.
GLDM came fourteen years later, aimed at a different buyer: the long-term investor holding a gold position for years. For that person the fee is the main ongoing cost, so GLDM was priced to compete on it. Keeping both funds lets the sponsor serve both audiences without cutting GLD's fee for the traders who are happy to pay it.
What the Fee Gap Does Over Time
A gold trust pays its fee by selling a little gold, so the amount of metal behind each share slowly shrinks. iShares describes the same mechanism for its gold trust: the gold per share "will decrease over the life of the Trust" to pay the sponsor's fee. The higher the fee, the faster that happens.
As a hypothetical illustration, on a $10,000 position the fee alone takes about $40 a year in GLD and $10 in GLDM. Over 20 years, ignoring gold price changes, that compounds to roughly 7.7% of the position consumed by GLD's fee against about 2% for GLDM. For a long-term holder, that is the whole argument.
The Tax Catch Most Comparisons Skip
Physical gold trusts are not taxed like stock ETFs. For U.S. tax purposes you are treated as owning the gold itself, and the IRS taxes long-term gains on collectibles, which include gold, at a maximum rate of 28% instead of the usual 20% cap on long-term capital gains. The iShares Gold Trust prospectus spells out that selling shares of a trust holding gold is treated as selling a collectible. This applies to GLD and GLDM alike, so it does not decide between them, but it does affect whether a gold ETF belongs in a taxable account or an IRA. Talk to a tax professional about your situation.
Which One Fits You
- Choose GLDM if you are buying gold to hold. You get the same metal for a quarter of the fee.
- Choose GLD if you trade gold actively or use options on it.
- Holding GLD already? In an IRA, switching costs no tax. In a taxable account, selling at a gain triggers collectibles tax, which may outweigh years of fee savings.
Comparing sponsors instead? See GLD vs IAU and GLDM vs IAU. Deciding whether to own gold at all? Read is gold a good investment.
FAQ
Is GLDM the same as GLD?
Both hold physical gold and come from State Street's SPDR lineup. GLDM charges 0.10% and GLD 0.40%.
Why is GLD more expensive than GLDM?
GLD serves traders who value its options market. GLDM was launched later for long-term holders and priced to compete on fee.
Does GLDM have options?
State Street's GLDM page lists options as not available; its GLD page lists them as available.
How are gold ETFs taxed?
As collectibles. Long-term gains are taxed at up to 28%, not the 20% maximum for most long-term capital gains.
Should I switch from GLD to GLDM?
In an IRA, usually yes, since there is no tax on the switch. In a taxable account, weigh the collectibles tax on any gain against the fee savings.
This article is for general information and is not investment or tax advice. Fund figures were taken from State Street's published fund pages on 2026-09-23 and can change; the fee illustration is hypothetical. Confirm current figures before you invest.