Which Gold ETF Is the Better Buy: iShares' IAU or State Street's GLD?
Both funds track physical gold with nearly identical returns, but IAU's lower 0.25% expense ratio could compound into meaningful savings over decades for buy-and-hold investors.
Overview
The primary distinction between iShares Gold Trust (NYSEMKT:IAU) and SPDR Gold Shares (NYSEMKT:GLD) is cost, as both funds provide nearly identical exposure to physical gold bullion prices. For many long-term investors, the lower annual fee of the iShares fund makes it a compelling choice for portfolio diversification.
Gold often acts as a critical diversifier in a portfolio dominated by stocks and bonds. These two exchange-traded funds provide a highly efficient way to gain exposure to the metal price movements without the logistical challenges of personal storage. This comparison helps clarify which trust might better fit your specific investment goals by analyzing their annual fees, total scale, and historical volatility.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months.
Source
Originally published at www.fool.com.