This is a physically backed commodity trust designed to reflect the spot price of gold. The value of the gold bullion held by the trust is passed directly through to the price per share.

It suits investors who want to add gold exposure to a portfolio in small amounts at a low cost.

It is a passive (index-tracking) ETF managed by iShares.

The price per share is determined by the market value of the gold bullion the trust actually holds. Unlike a typical equity ETF, it does not hold individual stocks and instead holds spot gold itself as its underlying asset. Changes in the gold price flow directly into net asset value without any rebalancing process.

• Fully backed by physical gold
• Product design aimed at a lower expense ratio than comparable gold ETFs

Assets under management (AUM) are $7.9B, and the total expense ratio is 0.09% per year.

Its fee burden is lower than that of GLD and IAU, which are listed alongside it in the table, and its fee level is also worth comparing with low-cost competitors such as SGOL and GLDM.

Gold prices have repeatedly moved up and down in step with real interest rates, the strength or weakness of the US dollar, and demand for safe-haven assets, and the trust's price per share has tracked that movement closely. Without a clear direction, prices have continued to fluctuate in response to external variables.

When inflation worries or geopolitical uncertainty come to the fore, inflows tend to increase on safe-haven demand. Conversely, in risk-on phases, money can flow out.

Its strengths are a low expense ratio and a physically backed structure, while the price volatility of gold itself and the lack of dividends are points to keep in mind.

The GLD and IAU ETFs shown alongside it in the table are older, larger gold products with abundant liquidity, but their fees are relatively higher. The SLV ETF differs in character because it is backed by physical silver rather than gold. The GLDM and SGOL ETFs are small-lot gold products that, like this one, aim for low fees, which makes them direct comparisons. In addition, if you want leveraged exposure, you can consider UGL, and if you want to invest in mining companies, gold miner ETFs such as GDX are also options.

Here are the points to check before investing in IAUM. Because it is backed by physical gold, you should first understand how it differs from a typical equity ETF, and it is wise to review fees, liquidity, and dividends together.

The volatility of the gold price itself and the lack of dividends are the key risks of this product. When the dollar is strong or real interest rates are rising, gold prices may correct, and that movement is passed directly through to the trust's price per share.

It is a suitable choice for investors who want spot gold exposure at a low cost. If you prioritize liquidity, compare it with GLD and IAU, and if you prioritize cost savings, compare it with GLDM and SGOL.