Gold ETFs: SPDR Gold Shares Provides Scale, While AAAU Is a Budget-Friendly Option

Comparison of ETFs: The Goldman Sachs Physical Gold ETF (AAAU) and SPDR Gold Shares (GLD) are both designed to track physical gold prices, but differ in size and cost, with AAAU having a lower expense ratio of 0.18% compared to GLD's 0.40%.

Market Performance: Gold prices have increased over 50% in 2025 due to geopolitical tensions and economic factors, leading central banks to increase their gold reserves as a hedge against inflation and uncertainty.

Fund Structure: Both ETFs hold physical gold bullion and do not disclose individual holdings, ensuring straightforward exposure to gold's performance, with SPDR Gold Shares being the largest and most liquid gold ETF in the U.S. since its launch in 2004.

Investment Considerations: Investors can choose between physical gold, gold stocks, or gold ETFs for exposure, with the cost of the ETFs being a significant factor in long-term returns, as lower fees can lead to better performance over time.