Gold Prices Are on the Move: Is GLD or IAU the Better ETF Pick?

By Sarah Sidlow – Apr 3, 2026 at 7:29AM ESTKey PointsIAU offers a lower expense ratio than GLD, making it more cost-effective for long-term holding.Both funds delivered nearly identical one-year returns and track the price of gold with similar risk profiles.GLD is much larger and more liquid, which could appeal to those prioritizing ease of trading.Both iShares Gold Trust (IAU 1.94%) and SPDR Gold Shares (GLD 1.92%) are designed to reflect the price of physical gold, offering a simple way to gain gold exposure without holding bullion. The main differences come down to cost, fund size, and trading liquidity, with both ETFs delivering almost identical gold price exposure and recent performance.This comparison focuses on how these two heavyweight gold funds stack up on costs, performance, and trading characteristics for investors considering a gold allocation.Snapshot (cost & size)MetricIAUGLDIssueriSharesSPDRExpense ratio0.25%0.4%1-yr return (as of 4/3/26)50.07%49.92%Beta0.670.67AUM$71.4 billion$156.7 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.IAU is more affordable on an ongoing basis thanks to its lower expense ratio, while GLD charges a higher fee but offers greater scale and trading volume. Since neither fund pays a dividend, yield is not a factor in this comparison.Performance & risk comparisonMetricIAUGLDMax drawdown (5 y)-21.82%-21.03%Growth of $1,000 over 5 years$2,671$2,651What's insideGLD is backed by physical gold bullion and has become the largest and most liquid gold ETF globally, with over $155 billion in assets under management and a track record spanning more than 21 years. Its holdings consist entirely of gold, classified as 100% basic materials, and while it does not disclose individual bar details in this summary, it is designed for investors seeking direct gold price exposure with deep liquidity.ExpandNYSEMKT: GLDSPDR Gold SharesToday's Change(-1.92%) $-8.41Current Price$429.41Key Data PointsDay's Range$421.17 - $431.6752wk Range$272.58 - $509.70Volume11MIAU is also fully backed by physical gold and tracks the price of gold. Like GLD, it provides pure gold exposure, but it is smaller in fund size and charges a lower expense ratio, appealing to cost-conscious investors.ExpandNYSEMKT: IAUiShares Gold TrustToday's Change(-1.94%) $-1.74Current Price$87.94Key Data PointsDay's Range$86.29 - $88.4152wk Range$55.78 - $104.40Volume6.1MAvg Vol17MFor more guidance on ETF investing, check out the full guide at this link.What this means for investorsBoth IAU and GLD are backed by physical gold bullion and track the price changes of the precious metal, which has increased more than 170% in the last five years. Gold is often viewed as a safe haven alternative investment, as it can provide a hedge against inflation and volatile market conditions and help to diversify an investment portfolio. The slight discrepancy in the funds’ overall growth and returns primarily comes down to the fees investors pay to hold the funds — while GLD holds more assets under management, it also charges a slightly higher expense ratio, meaning it takes a larger cut from investors who hold it. For long-term investors, higher fees can slowly erode returns over time.With betas under 1, these gold-tracking ETFs are less volatile than the broader market, making them an attractive investment in uncertain economic conditions. And holding shares in a brokerage account is certainly more convenient and less costly than storing physical gold bars, though some investors may see value in holding assets outside of the traditional banking structure.Read NextApr 3, 2026 •By Sarah SidlowGLD Offers Safer Gold Exposure Than SGDM, but SGDM Has Outperformed RecentlyApr 2, 2026 •By Seena HassounaSLV vs. GLD: Two Metals That Don't Move the Same WayApr 1, 2026 •By Leo SunIs Gold Going to $10,000? Here's What the Charts Are SayingMar 31, 2026 •By David Jagielski, CPAGold and Silver Prices Are Crashing. What's More Likely to Bounce Back?Mar 30, 2026 •By David Jagielski, CPACan Gold Get Back Up to $5,000 This Year?Mar 25, 2026 •By John BallardThe Battle of the Gold ETFs: Is AAAU Better Than GLD?About the AuthorSarah Sidlow is a Motley Fool contributing analyst and copy editor giving context and clarity to buzzworthy market moves. She also writes about personal finance and insurance topics for Credit Karma. She has a B.A. in Journalism and Psychology from Miami University (OH) and a Master's in Journalism from Georgetown University.TMFSHSStocks MentionedSPDR Gold SharesNYSEMKT: GLD$429.41(-1.92%)-$8.41iShares Gold TrustNYSEMKT: IAU$87.94(-1.94%)-$1.74*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.