Core Insights - The Goldman Sachs Physical Gold ETF (AAAU) and SPDR Gold Shares (GLD) provide direct exposure to physical gold, but differ in cost, liquidity, and size, necessitating careful consideration by investors [2][3] Cost & Size Comparison - AAAU has an expense ratio of 0.18% and $2.5 billion in assets under management (AUM), while GLD has a higher expense ratio of 0.40% and significantly larger AUM of $146.7 billion [4] - The one-year total return for AAAU is 66.8%, slightly higher than GLD's 66.5% [4] Performance & Risk Analysis - Over five years, AAAU experienced a maximum drawdown of -201.63%, compared to GLD's -22% [5] - An investment of $1,000 in AAAU would grow to $2,287, while the same investment in GLD would grow to $2,262 [5] ETF Structure and Liquidity - GLD, being the oldest and largest gold ETF, has been operational for over 21 years and is favored for its deep liquidity and tight bid-ask spreads [6] - AAAU, while smaller, also focuses on direct gold exposure without leverage or derivatives [6] Market Context - In 2025, gold prices surged nearly 65%, reaching an all-time high of $4,381.58 per ounce, driven by geopolitical tensions and central bank demand, particularly from emerging markets [10] - Gold ETFs are preferred by investors for exposure to gold prices without the complexities of owning physical bullion or analyzing individual stocks [11]