Gold ETFs: GLD is the Largest, But GLDM Provides Cheaper Gold Exposure

Core Insights - The article compares SPDR Gold Shares (GLD) and SPDR Gold MiniShares Trust (GLDM), highlighting their differences in expense ratios, fund sizes, and performance metrics to help investors determine which ETF may better suit their gold investment strategy [1][2]. Cost & Size Comparison - GLD has an expense ratio of 0.40% and assets under management (AUM) of $151.5 billion, while GLDM has a significantly lower expense ratio of 0.10% and AUM of $26.4 billion [3][4]. - Both ETFs have similar one-year returns, with GLD at 67.0% and GLDM at 66.2% [3]. Performance & Risk Metrics - Over the past five years, GLD experienced a maximum drawdown of -21.03%, while GLDM had a slightly lower drawdown of -20.92% [5]. - An investment of $1,000 would have grown to $2,396 in GLD and $2,427 in GLDM over the same period, indicating GLDM's slight edge in performance [5]. Fund Characteristics - GLDM is designed for cost-conscious investors seeking a straightforward way to invest in gold, having been available for 7.5 years and closely tracking gold's price movements [6]. - GLD, as the original gold ETF, offers 100% exposure to basic materials and is favored by institutional investors due to its large scale and liquidity [7]. Investment Implications - Both GLD and GLDM provide nearly identical performance results over the last five years, with GLDM slightly outperforming GLD [11]. - The lower expense ratio of GLDM makes it a more attractive option for cost-sensitive investors, despite GLD's larger AUM providing greater liquidity [11].