GLD vs. GLDM vs. IAU: Which Spot Gold ETF is Best?

The price of gold has surged to multiple all-time highs in 2025 as investors seek shelter from heightened volatility in risk assets, driven by global trade tensions, recession fears and persistently high inflation. As a traditional safe haven, gold has regained investor attention, and spot gold ETFs have become some of the most popular vehicles for gaining exposure.  

Among the top physically backed gold exchange-traded funds, the SPDR Gold Shares (GLD), SPDR Gold MiniShares Trust (GLDM) and iShares Gold Trust (IAU) are the largest and most widely traded.  

This data dive compares the structure and performance of these three ETFs and highlights why expense ratios are an important consideration when selecting a gold ETF.

GLD vs. GLDM vs. IAU: Similarities & Differences

All three ETFs—GLD, GLDM and IAU—track the spot price of gold by holding physical bullion in secure vaults. These funds provide a convenient, cost-effective and liquid way for investors to gain exposure to gold without the need to store or insure the metal themselves. However, there are notable differences among them.

SPDR Gold Shares ETF (GLD): The First Gold ETF

GLD is the largest and oldest gold ETF, launched in 2004. With its massive $96 billion in assets under management, GLD trades at a higher share price (about 1/10th the price of an ounce of gold) and has the highest expense ratio at 0.4%. Due to its size and liquidity, it's favored by institutional investors and active traders.

iShares Gold Trust (IAU): Lower Expenses, Lower Price

IAU was launched by BlackRock Inc. (BLK) in 2005 and has a lower expense ratio of 0.25%. IAU's assets are impressive at $43.3 billion. Its share price is much lower than GLD, making it more accessible to individual investors while maintaining strong liquidity and tracking efficiency.

SPDR Gold MiniShares (GLDM): Lowest Expense Ratio

GLDM is the newest of the three, launched in 2018 by State Street (the same sponsor as GLD), and is designed to be a low-cost alternative with an ultra-low expense ratio of 0.1%. GLDM assets are $13.6 billion. It also tracks the price of gold by holding physical bullion and is ideal for cost-conscious, buy-and-hold investors.

While all three ETFs aim to mirror the spot price of gold, their pricing structure and costs can influence returns over time, especially in long-term holdings.

GLD vs. GLDM vs. IAU: Performance

Note that GLD's performance edges out both GLDM and IAU over the past month but begins to lag its spot gold ETF rivals for periods longer than three months. GLDM's low expenses help it to win the long-term performance battle.

What to Look for When Choosing a Gold ETF

When evaluating spot gold ETFs, investors should consider the following criteria.

Expense Ratio

Over time, the annual fee charged by the ETF can significantly impact returns. GLDM’s 0.1% fee offers a clear advantage for long-term holders compared to GLD’s 0.4%.

Liquidity and Trading Volume

GLD offers the highest liquidity, often with tight bid-ask spreads, making it attractive for active traders. IAU also provides high daily volume, while GLDM, though smaller, has seen steadily increasing activity.

Share Price Accessibility

GLDM and IAU’s lower share prices may appeal to retail investors looking to dollar-cost average or invest smaller sums.

Tracking Accuracy and Custody

All three ETFs hold gold bullion in vaults (primarily in London) and provide audited holdings reports. GLD and IAU have long-standing reputations, while GLDM offers similar structural integrity at a lower cost.

Choosing between the three often comes down to use case—short-term trading (GLD), cost-efficient exposure (GLDM) or a middle-ground option (IAU).

Outlook for Spot Gold and Gold ETFs in 2025

With escalating trade conflicts, geopolitical uncertainty, sticky inflation and diverging central bank policies, gold is well-positioned to remain strong in the second half of 2025. The metal’s resilience during recent market turbulence has reaffirmed its status as a store of value. If economic fears persist and real yields stay compressed, demand for gold could remain elevated.

Spot gold ETFs like GLD, GLDM and IAU are poised to benefit, particularly among investors looking for liquidity, security and simplicity. 

However, it’s worth noting that while spot gold ETFs offer a direct link to gold prices, they do not pay income and may underperform during periods of rising interest rates or strong equity market recoveries.

In summary, spot gold ETFs offer a powerful tool for diversification and risk management, and choosing the right one depends on balancing cost, liquidity and investing style. With gold shining brightly in 2025, understanding these ETF differences can help investors capture its potential more effectively.