GLD Holds More Gold While IAU Is More Affordable
Key Points
IAU comes with a lower expense ratio than GLD, making it more cost-effective for long-term gold exposure.
GLD has larger assets under management (AUM) and slightly lower price volatility than IAU.
Both ETFs closely track gold prices, but GLD has experienced a smaller maximum drawdown over the past five years.
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iShares Gold Trust (NYSEMKT:IAU) and SPDR Gold Shares (NYSEMKT:GLD) both offer simple access to gold prices, but IAU charges a lower expense ratio, while GLD manages more assets under management (AUM) and has seen less severe historical drawdowns.
Both IAU and GLD are physically backed gold exchange-traded funds (ETFs) designed to mirror the price movement of gold bullion, appealing to investors seeking a straightforward way to gain gold exposure without owning the metal itself. This comparison looks at how they stack up on cost, performance, risk, and structure.
Snapshot (cost & size)
| Metric | IAU | GLD |
|---|---|---|
| Issuer | IShares | SPDR |
| Expense ratio | 0.25% | 0.40% |
| 1-yr return (as of 2026-02-04) | 73.1% | 72.9% |
| Beta | 0.26 | 0.26 |
| AUM | $80.2 billion | $173.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
IAU looks more affordable for long-term holders due to its lower expense ratio, while GLD charges a higher fee but commands the largest assets under management (AUM) among gold ETFs.
Performance & risk comparison
| Metric | IAU | GLD |
|---|---|---|
| Max drawdown (five years) | (20.93%) | (21.03%) |
| Growth of $1,000 over five years | $2,719 | $2,700 |
What's inside
GLD is invested entirely in physical gold, classified under basic materials, and has existed for over 21 years. While holdings data are not detailed, it operates as a pure play on gold bullion, with no sector or company-level tilts, and does not introduce unique quirks or hedges.
IAU also tracks the price of gold through physical holdings and is classified under real estate due to sector mapping conventions, though in practice it behaves as a direct gold proxy. Like GLD, IAU offers no yield and its portfolio is entirely focused on gold bullion, making both funds functionally similar in terms of underlying exposure.
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What this means for investors
Admittedly, investors will struggle to find material differences in these funds from just a surface-level comparison. As previously mentioned, both of the funds offer a similar performance over time. Both precious metals ETFs are also similar in terms of time of existence.
GLD is slightly older with a November 2004 inception date. Still, since IAU came into existence in January 2005, BlackRock’s iShares moved quickly to compete with State Street‘s SPDR Gold Shares.
As for significant differences, one that appears meaningful is the expense ratio, with GLD charging 0.40% compared to just 0.25% for IAU.
Indeed, the difference between the expense ratios likely will make little difference in terms of returns, though one may struggle to find a justification to pay an extra 0.15% to hold GLD.
The other major difference, which draws less attention, is assets under management. In that regard, GLD is the clear leader, managing $173.3 billion in assets versus just $80.2 billion for IAU.
Still, both funds have the name recognition and a level of assets under management that should make investors feel comfortable with either fund. Thus, investors are more likely to focus on IAU’s lower expense ratio when comparing the two ETFs.
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Will Healy has positions in SPDR Gold Shares and iShares Gold Trust. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.
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