What is the fee difference between GLDM and IAU?

GLDM charges 0.10% a year and IAU charges 0.25%. On $10,000 invested that is about $10 a year for GLDM and $25 for IAU, a difference of roughly $15. Because both track the same gold price, the fee gap is the main reason returns diverge over time, with the cheaper trust keeping slightly more gold per share.

What does each trust hold?

Both hold physical gold bullion stored in vaults, and both are designed to track the LBMA Gold Price, the main London benchmark, less expenses. Neither is an index fund and neither holds shares in gold mining companies. GLDM is State Street's lower-cost gold trust, and IAU is BlackRock's iShares gold trust.

Is there any overlap in holdings between GLDM and IAU?

Both trusts own the same asset, physical gold, so the exposure is effectively identical. There are no company holdings to compare. What differs is the sponsor, the annual fee, the size of the trust and how long each has traded. Investors choosing between them are choosing a wrapper, not a different investment.

Do GLDM or IAU pay dividends?

No. Gold generates no income, so neither trust pays a dividend. Total return comes from the change in the gold price minus the expense ratio. Investors who want income typically hold gold trusts as a diversifier alongside dividend-paying funds rather than as a source of cash flow.

Which trust suits which investment goal?

GLDM suits investors who plan to hold gold for the long term and want the lowest annual cost, since fees compound over years. IAU suits investors who prefer the largest and longest-established trust and value its two-decade record. For a short-term position the fee difference matters less than for a long-term one.

How do GLDM and IAU compare on size and liquidity?

IAU is the larger trust with about $64.9 billion in net assets, roughly double GLDM's $32 billion. Both are very large by ETF standards and trade actively on US exchanges, so retail investors can buy or sell either during market hours with tight spreads.

Why does the fee matter if both track the same gold price?

Each trust pays its expenses by selling a small amount of gold, so the gold backing each share shrinks slowly over time. At 0.25%, IAU's gold per share falls about two and a half times faster than GLDM's at 0.10%. Over a decade the gap in fees alone adds up to roughly $150 per $10,000 invested.

Are there tax differences between GLDM and IAU?

Tax treatment of gold trusts varies by country. In some jurisdictions gains on bullion-backed products are taxed as collectibles or at rates that differ from shares. Neither trust pays a dividend, so withholding tax on distributions does not apply. Check the rules for your country and account type before investing.

Can I hold both GLDM and IAU?

You can, but holding both gives no diversification benefit because they own the same asset and track the same price. Some investors hold both to spread sponsor risk between State Street and BlackRock. If that is not a concern, choosing one, usually on fee or size, is the simpler approach.

GLDM vs IAU

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

GLDM and IAU both hold physical gold in vaults and track the LBMA Gold Price, so the difference comes down to cost and size. GLDM charges 0.10% a year and holds $32 billion; IAU charges 0.25% and holds $64.9 billion, with a record back to 2005. Neither pays a dividend. GLDM suits cost-focused buyers; IAU suits those who want the larger, longer-established trust. Educational content, not financial advice.

GLDM and IAU both hold physical gold in vaults and track the LBMA Gold Price, so the difference comes down to cost and size. GLDM charges 0.10% a year and holds $32 billion; IAU charges 0.25% and hold...

Fund Snapshot

Key Fund Metrics

GLDM

Metric

IAU

0.10%

Expense Ratio

0.25%

–

Dividend Yield

–

$32.01B

Net Assets

$64.93B

–

Holdings

–

Jun 25, 2018

Inception Date

Jan 21, 2005

LBMA Gold Price

Index Tracked

LBMA Gold Price

Commodities Focused

Fund Category

Commodities Focused

GLDM costs about $15.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

GLDM

Pros

Expense ratio of 0.10% is less than half the 0.25% charged by IAU
Tracks the same LBMA Gold Price benchmark as IAU with physical gold in vaults
Already a large trust at $32 billion in assets despite launching in 2018

Considerations

Younger trust of the pair, trading only since June 2018
About half the size of IAU at $32 billion versus $64.9 billion
Pays no dividend, so returns depend entirely on the gold price

IAU

Pros

Largest gold trust of the pair at $64.9 billion in net assets
Trading since January 2005, giving more than two decades of history
Tracks the LBMA Gold Price with gold bullion held in vaults

Considerations

Expense ratio of 0.25% is two and a half times GLDM's 0.10%
Annual cost of about $25 per $10,000 compounds over long holding periods
Pays no dividend, like every physical gold product

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About GLDM and IAU

GLDM (GLDM)

IAU (IAU)

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