Choosing between iShares Gold Trust (NYSEMKT:IAU) and SPDR Gold Shares (NYSEMKT:GLD) involves weighing the lower management fees of IAU against the superior trading liquidity and institutional presence of GLD.
Both funds are designed to track the spot price of gold bullion by holding physical bars in secure vaults, providing investors with a way to own the metal without the logistical hurdles of storage and insurance
While they offer nearly identical exposure to the precious metal, their differing fee structures and trading volumes make each better suited for specific types of investors. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
The dividend yield represents the trailing-12-month distribution yield. The iShares Gold Trust is notably more affordable, charging an expense ratio of 0.25% compared to the 0.40% fee for SPDR Gold Shares. Neither fund provides a dividend yield because gold is a non-productive asset.