Gold acts as a global reserve asset with low to zero historical correlation with stocks and bonds. During inflationary times and geopolitical instability gold has performed well. A 10–15% allocation improves safe withdrawal rates.
IAUM is recommended due to its low expense ratio. GLD, IAU, and SGOL have longer track records but carry higher expense ratios. GLDM and IAUM were created specifically to offer lower share prices and lower fees.
TAX WARNING / IRS SECTION 408(m): IRS rules treat physical gold bullion, coins, and shares in trusts that hold physical gold (like GLD, IAU, SGOL, GLDM) as collectibles. Collectibles are generally taxed at 28% in taxable accounts. These ETFs don't pay any dividends so whether to hold them in a taxable account or an IRA will depend on whether your tax rate when withdrawing from an IRA will be greater or less than 28%.
| Fund | Symbol | Type | Expense Ratio | Market Cap / AUM | Live Price | Index / Benchmark / Notes |
|---|---|---|---|---|---|---|
| iShares Gold Trust Micro | IAUM | ETF | 0.09% | $8.0B | $41.33 | Cheapest expense ratio; Recommended |
| SPDR Gold MiniShares Trust | GLDM | ETF | 0.10% | $31.0B | $82.05 | Low-cost mini share structure |
| abrdn Physical Gold Shares ETF | SGOL | ETF | 0.17% | $7.2B | $39.46 | Vaulted in Switzerland/Singapore |
| SPDR Gold Shares | GLD | ETF | 0.40% | $142.2B | $380.14 | Oldest and most liquid gold ETF |
| iShares Gold Trust | IAU | ETF | 0.25% | $62.4B | $77.95 | Established iShares gold trust |