It is a trust-structured physical gold ETF sponsored by BlackRock iShares. It holds physical gold bullion and uses a passive strategy that tracks the gold price one-to-one. Compared with GLD, it offers a lower expense ratio and a smaller per-share price, which makes it well suited to long-term holding.

It suits gold-exposure investors who prioritize lower costs over a long holding period, as well as asset allocation investors who prefer to build positions gradually with a small per-share price.

It is an ETF managed passively (index-tracking) by BlackRock iShares.

It is a passively managed ETF in which the trust holds physical gold and the ETF share price is designed to track the gold price one-to-one. It shares the same trust structure as GLD, but its lower expense ratio and smaller per-share price set it apart as a good fit for long-term holding.

• Lower expense ratio than GLD
• Small per-share price, friendly to gradual buying
• One-to-one exposure to physical gold

Assets under management (AUM) stand at $59.8B, and the expense ratio is 0.25% per year.

GLD, GLDM, SGOL, and IAUM shown in the table are all classified as physical gold ETFs, and the main differences lie in expense ratio and sponsor. GLD leads in liquidity and the options market, while IAU, GLDM, and IAUM stand out as cheaper direct substitutes that suit long-term holding.

It has tended to strengthen during periods of a weaker dollar, interest rate cuts, and heightened geopolitical risk, while a short-term pullback is possible during cycles of a stronger dollar and rate hikes.

It belongs to the group of major commodity ETFs where safe-haven demand meets inflation-hedge demand. From a long-term holding perspective, fund flows moving from GLD to IAU have also been observed.

The lower expense ratio and smaller per-share price versus GLD are its main strengths, while the lack of distributions, tax treatment, and differences in the options market are drawbacks to consider in advance.

GLD, shown in the table, is a variant of the same physical gold ETF with an advantage in liquidity and options, while GLDM, SGOL, and IAUM belong to the category of cheaper direct substitutes in terms of expense ratio. SLV is a physical silver ETF from the same lineup, so its underlying asset differs. In addition, variants such as GDX and GDXJ for gold mining company stock exposure, and DBC and PDBC for broad commodity exposure, can also be considered.

Here are the points to review before investing in IAU. The lower expense ratio and small per-share price are strengths, but it is advisable to double-check the lack of distributions, tax treatment, and options market differences before buying, and to review your position size and diversification strategy at the same time.

A stronger dollar, rising interest rates, tax treatment, and exchange rate fluctuations are the main drivers of short-term volatility and real returns. Because there are no distributions and no cash flow during the holding period, this should be considered when deciding on your asset allocation weighting.

If you prioritize cost savings for long-term holding, IAU is regarded as a standard choice. If you need liquidity and an options market, GLD fits; for a smaller share price, GLDM, IAUM, and SGOL; for gold miners, GDX; and for broad commodities, DBC is the suitable variant.