What do expense ratios mean for gold ETFs?

An expense ratio is the annual fee charged by the fund provider to cover operational costs, deducted directly from the fund's assets. For IAU, this ratio is 0.25%, whereas SGOL charges 0.17%. This 8 basis point difference means SGOL is cheaper to hold each year. Over long periods, lower fees can help preserve more of the fund's value, although the impact depends on the total amount invested and the length of the holding period. Investors should weigh this cost against other factors like liquidity.

How do these ETFs track the gold market?

Both IAU and SGOL are designed to track the performance of physical gold. They aim to reflect changes in the spot price of bullion. However, specific index tracked data is not available for either fund in the provided information. Generally, physical gold ETFs hold bullion bars in secure vaults to match the metal's value. While they share the same broad objective, differences in structure or operational costs might lead to minor variations in how closely each fund follows the spot price over time.

What is net assets in ETF comparison?

Net assets represent the total market value of all securities held by an ETF, minus its liabilities. For IAU, net assets stand at $64.9 billion, compared to $7.4 billion for SGOL. A larger net asset base often suggests higher popularity and potentially better liquidity for traders. However, size alone does not guarantee superior performance or lower costs. It indicates the scale of the fund, which can influence trading spreads and the ease with which large orders can be executed without significantly moving the price.

Which gold ETF has a lower expense ratio?

SGOL has the lower expense ratio at 0.17%, while IAU charges 0.25%. This means SGOL's annual management fee is eight basis points cheaper than IAU's. For investors focused strictly on minimising ongoing holding costs for gold exposure, SGOL presents a lower fee structure. However, investors often consider the trade-off between this cost saving and IAU's significantly larger asset base and longer operational history since its inception in January 2005, compared to SGOL's launch in September 2009.

How do dividends work for these gold ETFs?

Gold is a non-income producing asset, meaning it does not generate dividends or interest simply by being held. Consequently, both IAU and SGOL have a dividend yield of 0.00%. These funds do not distribute regular cash payments to shareholders. Investors seeking income from their portfolios would need to look beyond physical gold ETFs. Any return from these specific vehicles primarily comes from capital appreciation, which occurs if the price of gold rises during the period the shares are held.

Do IAU and SGOL share similar top holdings?

The provided data indicates that there are no shared top-10 holdings between IAU and SGOL. Furthermore, specific top holdings details are listed as not available for both funds. This lack of disclosed overlapping holdings data makes a direct comparison of their internal portfolio composition difficult. As physical gold ETFs, both likely hold bullion, but the absence of specific holding lists prevents a detailed assessment of concentration or structural differences in their asset allocation based on the current information available.

Which ETF is older, IAU or SGOL?

IAU is the older fund, having launched on 21 January 2005. In contrast, SGOL was established on 9 September 2009. This means IAU has been operating for approximately four years and eight months longer than SGOL. For some investors, a longer track record can provide more historical data for assessing performance consistency and tracking accuracy through various market cycles. However, the age of the fund is just one factor among fees, liquidity, and structure when evaluating these gold exposure vehicles.

What is the asset size difference between them?

IAU is significantly larger in terms of net assets, holding $64.9 billion compared to SGOL's $7.4 billion. This means IAU's asset base is approximately nine times larger than SGOL's. A larger fund like IAU may offer tighter bid-ask spreads and better liquidity for active traders due to higher trading volumes. Conversely, SGOL's smaller size might result in wider spreads, potentially increasing transaction costs for frequent buyers and sellers, despite its lower expense ratio.

Why is liquidity important for ETF holders?

Liquidity refers to how easily and quickly an investor can buy or sell shares without significantly affecting the price. IAU's $64.9 billion net assets suggest a highly liquid market, typically leading to narrower bid-ask spreads. SGOL, with $7.4 billion, is smaller and may experience wider spreads. For long-term holders, this might matter less, but for traders entering or exiting positions frequently, high liquidity is crucial to ensure executions occur near the expected price, reducing implicit transaction costs.

How do expense ratios affect long-term returns?

Expense ratios are deducted from the fund's assets daily, reducing the overall value available to shareholders. Over ten years, a consistent 0.08% difference between IAU (0.25%) and SGOL (0.17%) compounds. While this seems small, on a large investment, it results in SGOL retaining slightly more value relative to the index it tracks. Investors aiming for the cheapest possible exposure to the spot price of gold over extended periods often prioritise funds with the lowest fees, assuming liquidity is sufficient.

What does a 0.00% dividend yield imply?

A 0.00% dividend yield implies that the fund does not pay any distributions to its shareholders. This is standard for ETFs that hold physical commodities like gold, as the asset itself does not produce cash flow. Investors holding IAU or SGOL should not expect regular income from these positions. Returns are entirely dependent on the fluctuation of the gold price. Those requiring income for retirement or cash flow purposes would need to supplement these holdings with other income-generating assets.

Where can I find specific holdings data?

Currently, the specific top-10 holdings and sector weights are not available for either IAU or SGOL in the provided dataset. As these are physical gold ETFs, their primary asset is gold bullion. Detailed breakdowns of vault storage, exact bar weights, or counterparty risks are typically found in the official prospectus or annual reports published by the fund issuers. Investors should consult these primary documents for a deeper understanding of the fund's structure beyond basic market data.

IAU vs SGOL

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

This page compares IAU and SGOL, examining their fees, holdings, dividends, and how each fund tracks the gold market. IAU has an expense ratio of 0.25%, while SGOL's is 0.17%. Both funds yield 0.00%. Neither discloses specific top-10 holdings or sector weights, so we focus on the data available, including IAU's $64.9 billion in net assets compared to SGOL's $7.4 billion. Understanding these differences helps investors evaluate options for physical gold exposure. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IAU

Metric

SGOL

0.25%

Expense Ratio

0.17%

0.00%

Dividend Yield

0.00%

$64.93B

Net Assets

$7.43B

Holdings

Jan 21, 2005

Inception Date

Sep 9, 2009

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Index Tracked

–

Commodities Focused

Fund Category

Commodities Focused

SGOL costs about $8.00 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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IAU vs PHYS

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IAU vs IAUM

Compare IAU and IAUM gold ETFs on expense ratios, net assets, and tracking. Note holdings and dividends are not available for these specific funds.

PHYS vs SGOL

Compare PHYS and SGOL gold ETFs. Review 0.41% vs 0.17% fees, 0% dividends, physical bullion holdings, and tracking methodologies for informed research.

Investment Analysis

IAU

Pros

IAU possesses significantly higher net assets, supporting its status as a large and established gold exchange traded fund.
Established in January 2005, the fund has a longer operational history than the comparative physical gold ETF.
The substantial size and long track record support the fund’s reputation as a primary vehicle for gold exposure.

Considerations

The expense ratio of 0.25 percent is 8 basis points higher than the 0.17 percent charged by the alternative fund.
A relatively higher expense ratio may erode returns over extended investment horizons, even with a strong track record.
The fund has a dividend yield of 0.00 percent, meaning it generates no income for holders of the shares.

SGOL

Pros

SGOL has an expense ratio of 0.17 percent, offering a lower cost structure compared to the alternative gold ETF.
This cost efficiency helps reduce the drag from management fees on long term investment outcomes for gold allocations.
The fund launched in September 2009, providing more than a decade of existence as an institutional gold vehicle.

Considerations

With net assets of $7.4 billion, the fund is significantly smaller than the $64.9 billion alternative gold ETF.
The smaller asset base potentially results in less liquidity and wider bid ask spreads for active traders.
This smaller size may increase the relative impact of market liquidity fluctuations on the execution of large orders.

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About IAU and SGOL

IAU (IAU)

SGOL (SGOL)

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IAU vs SGOL

Fund Snapshot