What do the expense ratios of 0.18% and 0.25% mean for these gold ETFs?

Expense ratios are annual fees deducted from an ETF's assets. AAAU charges 0.18%, while IAU charges 0.25%. This 0.07 percentage point difference means that for every £1,000 invested, you pay £1.80 per year for AAAU versus £2.50 for IAU. Over long periods, these costs compound, which can slightly impact net returns for holders of either fund.

How do net assets affect liquidity in gold ETFs like AAAU and IAU?

Net assets reflect an ETF's total value. IAU has £64.9 billion, while AAAU has £2.8 billion. Larger funds like IAU usually offer tighter bid-ask spreads and better liquidity due to higher trading volumes. AAAU's smaller size may occasionally lead to wider spreads, especially during volatile market conditions, potentially increasing transaction costs for investors.

Why might IAU's longer track record matter compared to AAAU's recent inception?

IAU launched in January 2005, providing two decades of history. AAAU began in July 2018. Longer track records help investors assess performance consistency during various market cycles. While AAAU's shorter history limits this insight, its backing by Goldman Sachs adds credibility, offering investors confidence despite less historical data compared to IAU's well-established record.

Which fund offers cheaper gold exposure based on fees alone?

AAAU offers a lower expense ratio at 0.18% compared to IAU's 0.25%. This makes AAAU less expensive to hold annually by 0.07 percentage points. Investors seeking lower costs over long holding periods might consider AAAU's fee advantage, though IAU's larger asset base could provide better liquidity, which is another relevant factor to weigh.

What does the 0.00% dividend yield indicate for both AAAU and IAU?

Both AAAU and IAU report a 0.00% dividend yield because they hold physical gold bullion directly. Gold itself produces no income, like interest or dividends. Returns for holders depend entirely on price movements. Neither fund is designed to generate cash flow, so investors should focus on capital appreciation as their potential source of return.

How do top holdings differ between AAAU and IAU?

AAAU and IAU both primarily hold physical gold bullion. The provided data shows no overlapping top holdings among specific security listings for the two ETFs. Investors should remember that gold ETFs' value is derived from the metal's spot price rather than corporate holdings. This makes them similar in market exposure, even if the exact bullion bars differ.

When might IAU's scale be advantageous over AAAU?

IAU's £64.9 billion net assets attract institutional investors, leading to high trading volumes and tight spreads. This scale benefits those requiring quick execution of large orders. AAAU's £2.8 billion assets may result in slightly less liquidity for substantial trades, potentially causing minor price discrepancies from spot gold compared to IAU's more liquid market.

How do these gold ETFs typically respond to inflation expectations?

Gold is often viewed as an inflation hedge. Both AAAU and IAU should track gold price movements, which might rise when inflation expectations increase due to gold's historical store-of-value perception. Neither fund is designed for yield but aims to mirror bullion prices, so their performance generally correlates with the broader commodities market trends during inflationary periods.

What risks affect physical gold ETFs like AAAU and IAU?

Physical gold ETFs face storage and custody risks, though both fund providers mitigate this through reputable arrangements. IAU's longer track record demonstrates stability, while AAAU offers modern custody through Goldman Sachs. Gold prices themselves remain volatile and influenced by global economic factors, so both funds are subject to commodity market fluctuations irrespective of their management.

How should investors choose between lower fees and higher liquidity?

Investors balance fee savings against trading costs. AAAU's 0.18% expense ratio saves on holding costs versus IAU's 0.25%. However, IAU's greater liquidity from £64.9 billion in assets can reduce transaction friction. For long-term holders, AAAU's fee advantage may matter most; for active traders, IAU's tighter spreads might outweigh its higher expense ratio.

Can these ETFs be used to diversify beyond stocks and bonds?

Both AAAU and IAU provide direct exposure to physical gold bullion, distinct from corporate equity or government debt. Gold prices sometimes move independently of traditional asset classes, potentially reducing portfolio volatility. Including either ETF in a diversified mix may lower correlation with stocks and bonds, although gold's returns rely entirely on price appreciation, not income.

What educational disclaimer applies to this comparison?

This comparison is for educational purposes only. It presents factual differences between AAAU and IAU regarding expenses, assets and yields as of 22 September 2026, according to Yahoo Finance. This content does not constitute financial advice or a recommendation to buy or sell any security. Investors should consult a qualified professional before making decisions.

AAAU vs IAU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare AAAU (Goldman Sachs Physical Gold Etf Unit) and IAU (Ishares Gold Ishares New (post Rev Split)). This page reviews fees, holdings, dividends and how each fund tracks its market. AAAU has a 0.18% expense ratio and IAU 0.25%. Both offer 0.00% yield. Educational content, not financial advice.

Compare AAAU (Goldman Sachs Physical Gold Etf Unit) and IAU (Ishares Gold Ishares New (post Rev Split)). This page reviews fees, holdings, dividends and how each fund tracks its market. AAAU has a 0.1...

Fund Snapshot

Key Fund Metrics

AAAU

Metric

IAU

0.18%

Expense Ratio

0.25%

0.00%

Dividend Yield

0.00%

$2.78B

Net Assets

$64.93B

1

Holdings

1

Jul 26, 2018

Inception Date

Jan 21, 2005

–

Index Tracked

–

Commodities Focused

Fund Category

Commodities Focused

AAAU costs about $7.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

AAAU vs PHYS

Compare AAAU and PHYS for fees, holdings and dividends. AAAU has 0.18% expense ratio. PHYS has 0.41%. Both show 0.00% yield. Index tracking not available.

AAAU vs GLDM

Compare AAAU and GLDM gold ETFs. This review examines their distinct expense ratios, net assets, inception dates, dividend yields, and tracking methods.

AAAU vs GLD

Compare AAAU and GLD: both hold physical gold at the LBMA price, but AAAU charges 0.18% and GLD 0.40%, about $22 more per $10,000 a year. Size and fit.

Investment Analysis

AAAU

Pros

Fund A offers a lower annual expense ratio of 0.18 percent than many comparable products.
Goldman Sachs physical gold trust provides a well-known brand and robust custody arrangements.
Investors can access gold through an exchange-traded structure with a net asset value of 2.8 billion dollars.

Considerations

The fund’s expense ratio is higher than some leading alternatives like SPDR Gold Shares.
Net assets of 2.8 billion dollars are substantially smaller than industry giant IAU.
Trading liquidity may be lower than funds with much larger asset bases and longer histories.

IAU

Pros

The fund benefits from massive liquidity and very tight bid-ask spreads due to its size.
Net assets of 64.9 billion dollars indicate deep institutional and retail adoption.
Inception date of 2005 provides a long, established track record for investors.

Considerations

The annual expense ratio of 0.25 percent is higher than Goldman Sachs’ AAAU.
Physical gold backing means no yield, with a dividend yield of 0.00 percent.
Investors seeking cheaper exposure might look to funds with lower management fees than this.

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About AAAU and IAU

AAAU (AAAU)

IAU (IAU)

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