Wealthy PotGLD vs IAU: Two Gold ETFs, One Metal, Different Fees
GLD and IAU are two of the oldest U.S. gold ETFs, launched within months of each other in 2004 and 2005. Each holds physical gold bullion, so each tracks the price of gold minus its fee. That makes the fee the main difference: IAU's sponsor fee is 0.25%; GLD's expense ratio is 0.40%. For a long-term holder, that 0.15-point gap is the decision. For an active trader, other things matter.
The Short Answer
- Same metal: both are trusts that hold physical gold bullion.
- IAU is cheaper: 0.25% against 0.40%, or $25 against $40 a year on $10,000.
- Different sponsors: IAU is BlackRock's iShares Gold Trust; GLD is State Street's SPDR Gold Shares.
- Cheaper still: if cost is your priority, GLDM (0.10%) undercuts both. See GLDM vs IAU.
GLD vs IAU Side by Side
| Feature | GLD | IAU |
|---|---|---|
| Full name | SPDR Gold Shares | iShares Gold Trust |
| Annual fee | 0.40% (expense ratio) | 0.25% (sponsor fee) |
| Holds | Physical gold | Physical gold |
| Launched | November 18, 2004 | January 21, 2005 |
What Actually Differs
The fee. Both trusts pay their costs by selling small amounts of gold, so the metal behind each share shrinks a little every year; iShares says so plainly for IAU. At 0.40% GLD shrinks faster than IAU at 0.25%. As a hypothetical illustration ignoring gold price moves, over 20 years GLD's fee would consume about 7.7% of a position and IAU's about 4.9%.
The trading profile. GLD is the older fund and has listed options (per State Street), which matter to active traders and hedgers. If you only buy and hold, you do not need those features and should not pay for them.
The sponsor. Both are run by large, established managers with gold held by professional custodians. This is rarely a reason to choose one over the other.
Both Are Taxed as Collectibles
For U.S. tax purposes, owning shares of a physical gold trust is treated like owning the gold. The IRS taxes long-term gains on collectibles at a maximum 28%, above the 20% top rate for most long-term capital gains, and the iShares Gold Trust prospectus confirms that rule applies to its shares. GLD is also a trust holding physical gold, and the same collectibles treatment generally applies; its prospectus has the details. Because the rule is the same for both, it matters for where you hold gold (a retirement account avoids the issue while the money stays inside it), not for which fund you pick.
Which One Fits You
- Choose IAU for a long-term gold position at a lower fee than GLD.
- Choose GLD if you trade gold actively or use options.
- Consider GLDM if you want the lowest fee of the three, 0.10%.
- Do not hold two. They own the same metal; one gold fund is enough.
FAQ
Is IAU cheaper than GLD?
Yes. IAU's sponsor fee is 0.25%; GLD's expense ratio is 0.40%.
Do GLD and IAU hold real gold?
Yes. Both are trusts that hold physical gold bullion. IAU values its gold at the LBMA Gold Price.
Which gold ETF is cheapest?
Of GLD, IAU and GLDM, GLDM is cheapest at 0.10%.
How are GLD and IAU taxed?
Generally as collectibles: long-term gains are taxed at up to 28% at the federal level.
Should I switch from GLD to IAU?
In a retirement account there is no tax cost. In a taxable account, selling at a gain triggers collectibles tax, which can outweigh the fee savings for years.
This article is for general information and is not investment or tax advice. Fund figures were taken from State Street's and iShares' published fund pages on 2026-09-23 and can change; the fee illustration is hypothetical. Confirm current figures before you invest.