##  [# GLD vs GLDM vs IAU: Which Gold ETF Should You Actually Buy?](/sections/news/gld-vs-gldm-vs-iau-which-gold-etf-should-you-actually-buy) 

 

# GLD vs GLDM vs IAU: Which Gold ETF Should You Actually Buy?

 

 

GLD, GLDM, and IAU all track gold bullion, but their expense ratios, share prices, and options liquidity differ in ways that matter. Here's how to pick the right one for your portfolio.



 

 

 

 

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[By ETF.com Staff](/contributors/etfcom-staff)

 Jun 17, 2026

 Edited by: ETF.com Staff

 

 

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[**GLD**](https://www.etf.com/GLD), [**GLDM**](https://www.etf.com/GLDM), and [**IAU**](https://www.etf.com/IAU) all do the same thing: hold gold bullion in a vault and let investors buy a fractional claim on it. Their performance tracks spot gold almost identically. But the differences in cost, share price, and options activity are real — and for most investors, getting this choice right is worth a few minutes of reading.

*For even more discussions on gold, don’t miss Lara Crigger’s detailed analysis of GLD, GLDM, IAU, and IAUM* [***here***](https://www.etf.com/sections/etf-basics/gold-etfs-explained-what-investors-should-know-about-gld-gldm-iau-and-iuam)*.*

## [GLD](https://www.etf.com/GLD) vs [GLDM](https://www.etf.com/GLDM) vs [IAU](https://www.etf.com/IAU): Key Facts at a Glance

 [**GLD**](https://www.etf.com/GLD)[**GLDM**](https://www.etf.com/GLDM)[**IAU**](https://www.etf.com/IAU)**Issuer**State Street (SPDR)State Street (SPDR)BlackRock (iShares)**Expense ratio**0.40%0.10%0.25%**Share price (approx.)**~$400~$86~$82**Gold per share**1/10 oz1/100 oz1/100 oz**AUM**~$142B~$30B~$66B**Avg. daily volume**Very high (~8M shares)Moderate (~2M shares)High (~5M shares)**Options market**Deep and liquidThinModerate**Launched**200420182005 
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## Expense Ratio: [GLDM](https://www.etf.com/GLDM) Wins by a Wide Margin

[**GLD**](https://www.etf.com/GLD) charges 0.40% annually. On a $100,000 gold position, that’s $400 per year going to State Street. [**GLDM**](https://www.etf.com/GLDM), also from State Street, charges just 0.10% — the same $100,000 position costs $100 per year. [**IAU**](https://www.etf.com/IAU) from BlackRock sits in between at 0.25%, or $250 per year.

Over 10 years, the cost difference between [**GLD**](https://www.etf.com/GLD) and [**GLDM**](https://www.etf.com/GLDM) on a $100,000 investment is roughly $3,000 in fees, before compounding effects on the fee drag. That’s real money — especially since all three funds track the same underlying asset and will deliver nearly identical pre-fee returns. However, this must be balanced against the gold per share that each ETF provides exposure to.

[**GLD**](https://www.etf.com/GLD)’s high fee is largely a legacy artifact, though it provides the largest gold exposure. Launched in 2004 as the first major U.S. gold ETF, it commanded a premium when there was no competition. State Street launched [**GLDM**](https://www.etf.com/GLDM) in 2018 but [**GLD**](https://www.etf.com/GLD)’s enormous AUM ($142B+) and unmatched options liquidity have kept institutional investors from fleeing, even at 4× the cost.

## Share Price: [GLDM](https://www.etf.com/GLDM) and [**IAU**](https://www.etf.com/IAU) Are More Accessible

[**GLD**](https://www.etf.com/GLD) holds roughly 1/10 of an ounce of gold per share, making each share worth around $400 at current gold prices. That’s a meaningful commitment for investors with smaller accounts or those making regular contributions. Meanwhile, [**GLDM**](https://www.etf.com/GLDM) and [**IAU**](https://www.etf.com/IAU) hold approximately 1/100 and 1/50 of an ounce per share respectively.

At brokerages offering fractional shares (Fidelity, Schwab, Robinhood), share price is less of a factor. But for retirement accounts or platforms without fractional share support, [**GLDM**](https://www.etf.com/GLDM) and [**IAU**](https://www.etf.com/IAU) are more practical for investors working with smaller amounts.

## Options Market: [GLD](https://www.etf.com/GLD) Has No Competitor

This is the one area where [**GLD**](https://www.etf.com/GLD)’s premium is genuinely justified. [**GLD**](https://www.etf.com/GLD) has by far the deepest, most liquid gold options market of any ETF. Institutional investors, hedge funds, and sophisticated retail traders use [**GLD**](https://www.etf.com/GLD) options to hedge gold exposure, express directional views with leverage, or generate income through covered calls and cash-secured puts.

[**GLD**](https://www.etf.com/GLD) options have tight bid-ask spreads, large open interest across dozens of strike prices and expirations, and deep enough liquidity to fill large orders without significant market impact. [**IAU**](https://www.etf.com/IAU) has an options market but it’s meaningfully thinner. [**GLDM**](https://www.etf.com/GLDM)’s options market is barely active at all.

If you plan to trade options on your gold position — writing covered calls to generate income, buying puts as a hedge, or using spreads — [**GLD**](https://www.etf.com/GLD) is the only practical choice. The liquidity premium more than justifies the higher expense ratio for active options traders.

## Tax Treatment: All Three Are Taxed as Collectibles

This is where gold ETFs differ most sharply from equity ETFs, and it applies equally to [**GLD**](https://www.etf.com/GLD), [**GLDM**](https://www.etf.com/GLDM), and [**IAU**](https://www.etf.com/IAU).

Physical gold and gold ETFs that hold physical bullion are classified as collectibles by the IRS. Long-term capital gains on collectibles are taxed at a maximum rate of 28%, compared to 20% for long-term equity gains. Short-term gains on gold ETFs are taxed as ordinary income, the same as any other asset held less than a year.

There is no way to avoid this treatment by choosing between [**GLD**](https://www.etf.com/GLD), [**GLDM**](https://www.etf.com/GLDM), and [**IAU**](https://www.etf.com/IAU) — it applies to all three. Gold mining stocks and ETFs that hold gold miners ([**GDX**](https://www.etf.com/GDX), [**GDXJ**](https://www.etf.com/GDXJ)) are equity funds and receive standard equity tax treatment, but they also carry equity-style risk that physical gold does not.

For tax-advantaged accounts (IRA, 401(k), HSA), the collectibles treatment doesn’t apply — gains compound tax-free or tax-deferred regardless. Gold ETF investors who want to hold meaningful positions are often better served holding them inside a retirement account for this reason.

## The Verdict

**For most long-term investors:** [**GLDM**](https://www.etf.com/GLDM) **or** [**IAU**](https://www.etf.com/IAU)**.** The 0.30% cost advantage of [**GLDM**](https://www.etf.com/GLDM) over [**GLD**](https://www.etf.com/GLD) compounded over a decade is simply too large to ignore when the underlying asset is identical. [**GLDM**](https://www.etf.com/GLDM)’s 0.10% expense ratio is the lowest available among physical gold ETFs and the clear choice for buy-and-hold investors needing an accessible entry point. [**IAU**](https://www.etf.com/IAU) at 0.25% is also a strong option — it has larger AUM and slightly higher liquidity than [**GLDM**](https://www.etf.com/GLDM), which can matter for large positions.

**For active options traders:** [**GLD**](https://www.etf.com/GLD)**.** The depth of [**GLD**](https://www.etf.com/GLD)’s options market is unmatched. If covered calls, protective puts, or spread strategies are part of your gold investment approach, [**GLD**](https://www.etf.com/GLD)’s liquidity justifies its higher fee. The 0.30% premium over [**GLDM**](https://www.etf.com/GLDM) is real, but for an options trader, the bid-ask spread and execution quality on options can easily be worth that and more.

**For both types: hold in a tax-advantaged account if possible.** The 28% collectibles rate is unavoidable in taxable accounts. Allocating your gold position to an IRA or 401(k) sidesteps this entirely and lets the full pre-tax return compound.

[**GLD**](https://www.etf.com/GLD), [**GLDM**](https://www.etf.com/GLDM), and [**IAU**](https://www.etf.com/IAU) all do what they promise — track gold bullion with high fidelity. The choice comes down to a single question: do you need options liquidity? If yes, [**GLD**](https://www.etf.com/GLD). If no, [**GLDM**](https://www.etf.com/GLDM) at 0.10% is the best value available in physical gold ETFs, with [**IAU**](https://www.etf.com/IAU) a close second at 0.25%.

[**Compare GLD**, **GLDM**, and **IAU**](https://www.etf.com/tools/etf-comparison/GLD-vs-GLDM-vs-IAU) side-by-side using ETF.com’s Comparison Tool.

---

*This article was generated with the assistance of artificial intelligence and reviewed by ETF.com staff.*

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