It is a physical gold ETF that tracks the price of physical gold based on the London gold price (LBMA Gold Price). Structured as a grantor trust that directly holds physical gold bars rather than stocks, it reflects gold price movements after deducting costs.

It suits long-term investors who want to add gold exposure to their portfolio to prepare for inflation and market volatility.

It is a passive (index-tracking) ETF managed by SPDR (State Street).

It holds physical gold bars directly and follows the gold price, delivering performance reduced only by operating costs. Unlike equity ETFs, there is no stock selection or rebalancing, and it holds just a single physical asset, so its operating structure is simple. Custody is handled by a designated custodian.

• Grantor trust structure that directly holds physical gold bars
• Lower fee level than the larger gold ETF from the same issuer

Assets under management (AUM) stand at $30.4B, and the expense ratio is 0.10% per year.

Its fee burden is lower than that of GLD and IAU, which offer the same physical gold exposure, giving it an edge in cost efficiency over long holding periods.

Gold is a safe-haven asset that reacts sensitively to market anxiety, the direction of interest rates, and the strength of the dollar, and interest in it tends to rise when inflation concerns grow. Short-term prices tend to show volatility depending on the macro environment.

Driven by portfolio diversification and hedging demand, gold ETFs often see inflows when market uncertainty rises. Thanks to its low-fee structure, funds seeking long-term accumulation and core gold exposure tend to flow in steadily.

Its strengths are a low fee and a structure that directly holds physical gold, while its weaknesses are the non-dividend nature and price volatility typical of gold.

GLD, IAU, SGOL, IAUM and others shown in the table are all direct substitutes that track physical gold, and they differ in issuer and fee level. If you want silver exposure instead of gold, you can consider SLV, a physical silver ETF, and if you want to invest in the share prices of gold mining companies, you can also review products such as GDX, a gold miners ETF. Because this is single-asset exposure, managing the diversification weight is important.

Here are the points to review before investing in GLDM. It is a core diversification tool that tracks physical gold, but it is best to confirm in advance that the asset pays no interest or dividends, that its price fluctuates with interest rates and the dollar, and that investors holding Korean won face exchange rate exposure.

Gold pays no interest or dividends, and its price can swing sharply depending on the macro environment. Although it is classified as a safe-haven asset, losses can occur in the short term, so it is important to keep the diversification weight at an appropriate level.

It suits investors as a core way to add gold exposure to a long-term portfolio. If cost efficiency is the priority, low-fee products such as GLDM and IAUM may be the choice, and if liquidity is the priority, the larger gold ETFs can be an option.