Key Points
Goldman Sachs Physical Gold ETF (AAAU) charges less than half the expense ratio of SPDR Gold Shares (GLD).
Both funds closely track gold prices and have delivered nearly identical returns and risk profiles over the past year.
SPDR Gold Shares commands vastly higher assets under management and daily trading volume, supporting deep liquidity for larger trades.
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The Goldman Sachs Physical Gold ETF (NYSEMKT:AAAU) stands out for its lower expense ratio, while SPDR Gold Shares (NYSEMKT:GLD) offers greater scale and liquidity. Still, both aim to track the price of gold bullion with similar historical performance and risk.
Both AAAU and GLD are physically backed gold exchange-traded funds (ETFs) designed to reflect the price of gold bullion minus ongoing expenses. This comparison looks at which option may appeal more to those seeking gold exposure through an ETF, focusing on cost, returns, risk, and trading experience.
Snapshot (cost & size)
| Metric | GLD | AAAU |
|---|---|---|
| Issuer | State Street | Goldman Sachs |
| Expense ratio | 0.40% | 0.18% |
| 1-yr return (as of 2026-03-24) | 45.8% | 46.1% |
| Beta | 0.67 | 0.67 |
| AUM | $149.4 billion | $2.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
AAAU looks more affordable, charging just 0.18% in annual expenses compared to 0.40% for GLD — a difference that could add up for long-term holders. Yield is not a factor with either ETF, as neither distributes income.
Performance & risk comparison
| Metric | GLD | AAAU |
|---|---|---|
| Max drawdown (5 y) | (22.0%) | (21.6%) |
| Growth of $1,000 over 5 years | $2,489 | $2,517 |
What's inside
Goldman Sachs Physical Gold ETF holds physical gold to mirror spot prices. The fund launched in July 2018 and is structured to provide direct exposure to bullion without leverage or currency hedging.
SPDR Gold Shares also offers 100% exposure to gold. It is similarly structured to Goldman’s fund, with GLD holding gold bars to track the price of gold bullion, minus operating expenses. Both funds avoid leverage, derivatives, and other strategies, focusing solely on gold price movements.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Gold is having a historic run, and GLD is often the popular choice for gold investors. However, there are clear differences between these gold funds that could affect an investor’s long-term returns from gold.
If you are looking to trade gold prices in the near term, GLD would be the better choice given its greater liquidity and higher average daily volume.
But there are good reasons to consider AAAU the better gold fund for long-term investors. Its lower expense ratio doesn’t mean much in the near term, but it adds up over time. This can explain why AAAU has outperformed GLD over multiple time frames.
Over the last 10 years, AAAU returned 270%, beating GLD’s 264% return. AAAU also marginally outperformed GLD over the past five- and one-year periods.
Both funds hold physical gold to track the performance of gold bullion over time. They are both effective in accomplishing that objective. Still, for investors looking to buy and hold one of these ETFs for the long term, AAAU appears to be a superior fund given its lower expense ratio and superior return history.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
