Best Gold ETFs for 2026: GLD vs IAU vs SGOL vs BAR Comparison

Key Takeaways

For most investors: IAU (iShares Gold Trust) offers the best balance of low cost (0.25% expense ratio) and strong liquidity
For active traders: GLD (SPDR Gold Shares) has the tightest bid-ask spreads and deepest liquidity — every dollar of unnecessary spread matters at high frequency
For lowest possible cost: BAR (GraniteShares Gold Trust) at 0.17% expense ratio is the cheapest option among established gold ETFs
For offshore vault preference: SGOL (Aberdeen Standard Physical Gold) stores gold in Switzerland — ideal for investors seeking geographic diversification of custody
IRA investors: All four qualify for IRAs, but verify with your custodian as treatment can vary
Key tax fact: Physical gold ETFs are taxed as collectibles (28% max federal rate) regardless of holding period — unlike equity ETFs at 20% long-term rate

Data as of: February 18, 2026 | Gold price: $4,931.81 | Expense ratios and AUM figures updated quarterly.

Gold ETFs have fundamentally changed how investors access the gold market. Before their introduction, getting exposure to gold required buying physical bars or coins (with premiums, storage costs, and liquidity challenges), or using futures (with rollover costs and leverage complexities). ETFs provide direct physical gold exposure in a brokerage account, with instant liquidity, no storage hassle, and low annual costs.

But not all gold ETFs are identical. Expense ratios range from 0.17% to 0.40%. Vault locations vary from London to New York to Zurich. AUM ranges from $600 million to $80 billion. Choosing the wrong ETF could cost you 0.23% per year — $230 on every $100,000 invested — for no additional benefit. This guide eliminates the confusion.

Full Comparison: The Four Major Gold ETFs

Metric	GLD	IAU	SGOL	BAR
Full Name	SPDR Gold Shares	iShares Gold Trust	Aberdeen Standard Physical Gold Shares	GraniteShares Gold Trust
Expense Ratio	0.40%	0.25% Best Value	0.17%	0.17% Lowest Cost
AUM (Feb 2026)	$80.2B Largest	$34.1B	$3.8B	$1.2B
Gold per Share	~0.093 oz	~0.01 oz	~0.097 oz	~0.01 oz
Share Price (approx.)	~$460	~$50	~$478	~$50
Avg Daily Volume	8.2M shares Most Liquid	11.4M shares	0.9M shares	0.5M shares
Typical Bid-Ask Spread	$0.01 (0.002%)	$0.01 (0.02%)	$0.03 (0.006%)	$0.02 (0.04%)
Vault Location	London (HSBC)	London (JPMorgan)	Zurich (Switzerland) Offshore	London (ICBC Standard)
Custodian	HSBC	JPMorgan Chase	JP Morgan Zurich	ICBC Standard Bank
Allocated Storage	Yes	Yes	Yes	Yes
Physical Redemption	For APs only	For APs only	Yes (min. 100 shares)	For APs only
IRA Eligible	Yes	Yes	Yes	Yes
Tax Treatment	All four: Collectibles — 28% max federal capital gains rate (short or long-term)
Inception Date	Nov 2004	Jan 2005	Sep 2009	Aug 2017
5-Year Tracking Error (vs. gold)	0.43%	0.27%	0.20%	0.19%

Individual ETF Profiles

GLD

SPDR Gold Shares — State Street Global Advisors

Expense Ratio0.40%

AUM$80.2 billion

Daily Volume (avg)8.2M shares

CustodianHSBC London

Gold per Share0.09312 oz

Best for: Active traders and institutions requiring maximum liquidity. GLD is the most recognized gold ETF globally and trades with penny-wide bid-ask spreads at massive scale. The 0.40% expense ratio is the highest of the four, but the deep liquidity means large trades ($1M+) execute without meaningful market impact. Long-term buy-and-hold investors will pay more here than necessary.

IAU

iShares Gold Trust — BlackRock

Expense Ratio0.25%

AUM$34.1 billion

Daily Volume (avg)11.4M shares

CustodianJPMorgan London

Gold per Share0.01012 oz

Best for: Most long-term investors. IAU's 0.25% expense ratio saves 0.15% annually over GLD with only marginally reduced liquidity. At $50/share, it's also more accessible for smaller investors and easier to buy in fractional amounts. The lower share price also means dollar-cost averaging is more practical. BlackRock's backing provides institutional confidence.

SGOL

Aberdeen Standard Physical Gold Shares ETF

Expense Ratio0.17%

AUM$3.8 billion

Daily Volume (avg)0.9M shares

CustodianJPMorgan Zurich, Switzerland

Gold per Share0.09721 oz

Best for: Investors who want geographic custody diversification. Switzerland has centuries of financial neutrality, strong property rights laws, and is outside both US and EU jurisdiction. SGOL's 0.17% expense ratio also makes it cheaper than GLD and IAU. Lower AUM means slightly wider bid-ask spreads — avoid large market orders; use limit orders.

BAR

GraniteShares Gold Trust

Expense Ratio0.17%

AUM$1.2 billion

Daily Volume (avg)0.5M shares

CustodianICBC Standard Bank, London

Gold per Share0.01014 oz

Best for: Cost-conscious long-term holders with smaller position sizes. At 0.17%, BAR ties SGOL as the cheapest option. However, its $1.2B AUM is significantly smaller than competitors — fine for individual investors but creates some liquidity concern for very large positions. ICBC Standard Bank as custodian is less recognized than HSBC or JPMorgan.

True Cost of Ownership: 10-Year Analysis

Expense ratios compound over time. Here is the total cost impact on a $100,000 investment over 10 years, assuming gold prices are constant (this isolates the cost difference only):

ETF	Annual Fee on $100K	5-Year Cost	10-Year Cost	vs. IAU over 10 Years
GLD	$400	$2,000	$4,000	+$1,500 more expensive
IAU	$250	$1,250	$2,500	—
SGOL	$170	$850	$1,700	-$800 cheaper
BAR	$170	$850	$1,700	-$800 cheaper

The cost difference is meaningful but not enormous for most individual investors. On a $10,000 position, the 10-year difference between GLD and BAR is $230 — real money, but not the primary consideration if you value GLD's liquidity for frequent trading. On a $1,000,000 position, the difference is $23,000 — a compelling reason to choose BAR or SGOL over GLD for a strategic hold.

Tax Treatment: The Collectibles Rule

This is the single most important tax fact every gold ETF investor must know: physical gold ETFs (GLD, IAU, SGOL, BAR) are classified as collectibles by the IRS.

What this means in practice:

Maximum federal capital gains tax rate: 28% (regardless of holding period)
Long-term equity/bond ETF max rate: 20% (for high earners)
The standard 20% long-term capital gains rate does not apply to gold ETFs
State taxes apply on top of the 28% federal rate in most states
Collectibles tax applies whether you hold for 1 day or 30 years

For investors in the 37% income tax bracket, gains on gold ETFs held long-term face 28% federal tax (not 20%). The difference: a $50,000 gain costs $14,000 in federal tax under collectibles treatment vs. $10,000 under the preferential rate — a $4,000 difference that may justify holding gold ETFs in a tax-deferred IRA account where collectibles treatment is irrelevant during the accumulation phase.

IRA Strategy

Holding gold ETFs inside a traditional or Roth IRA eliminates the collectibles tax problem during the accumulation phase. In a Roth IRA, gains are tax-free. In a traditional IRA, gains are deferred and taxed as ordinary income on withdrawal — which may actually be worse than collectibles rates for high earners. The right account depends on your expected retirement tax bracket.

The Decision Framework: Which ETF Should You Choose?

Match Your Situation to the Right ETF

You trade actively and need maximum liquidity GLD

You're a buy-and-hold investor focused on total return IAU

You want the lowest annual cost and trade infrequently BAR or SGOL

You want gold stored outside US/UK jurisdiction SGOL

You're investing through a Roth or traditional IRA IAU (liquidity advantage for periodic rebalancing)

Your position is under $50,000 IAU (lower share price makes DCA practical)

Your position is over $500,000 Split: SGOL or BAR for the cost savings, GLD for liquid portion

You want physical gold access in an emergency Physical bars/coins — ETFs don't give retail investors direct redemption

Alternatives to Physical Gold ETFs

Gold ETFs are not the only way to invest in gold. Here is where they fit in the broader investment landscape:

Investment Type	Exposure	Leverage	Best For	Key Risk
Physical Gold ETF (GLD, IAU, etc.)	1:1 to gold price	None	Core allocation, IRAs, long-term holds	Collectibles tax; no physical possession
Physical Bars/Coins	1:1 to gold price	None	Systemic hedge, no counterparty risk	Premiums (3–8%); storage costs; less liquid
Gold Miners ETF (GDX, GDXJ)	~2–3x gold price move	Operational leverage	Aggressive bull play; valuation-driven investing	Management risk; mine costs; political risk
Gold Futures (COMEX)	Direct; rollover required	High (initial margin ~6%)	Hedging; professional traders	Roll costs; margin calls; complexity
Gold Streaming Companies (RGLD, WPM)	Indirect; equity exposure	Financial leverage	Dividend income + gold exposure	Company-specific risk; premium valuation

Frequently Asked Questions

Is GLD actually backed by physical gold?

Yes. GLD is fully backed by physical allocated gold bars held in HSBC's London vault. Each bar is individually identified by serial number, weight, and purity in bar lists published on the SPDR website. The gold undergoes annual audits. However, "allocated" in this context means the gold is clearly assigned to GLD, not that individual shareholders own specific bars — redemption of physical gold is only available to Authorized Participants in 100,000-share blocks.

Will gold ETFs track gold price exactly?

Very closely but not perfectly. The tracking error is the difference between the ETF's net asset value (NAV) return and gold's spot price return. This gap is primarily caused by the expense ratio being deducted from the gold held. Over time, an ETF holding 0.93 oz of gold per 10 shares slowly "erodes" due to fees. Over 10 years, IAU's 0.25% fee means it will hold approximately 2.5% less gold per share than on inception. This is the true long-term cost of ETF ownership.

Can I convert my gold ETF shares into physical gold?

Not directly as a retail investor. Authorized Participants (large financial institutions) can redeem ETF shares for physical gold in large basket sizes (typically 100,000 shares for GLD = roughly 9,312 oz = 290 kg). Individual retail investors must sell their ETF shares on the market and use proceeds to buy physical gold separately. SGOL offers a slightly lower minimum for APs but still not for retail investors.

Should I choose GLD or IAU for my IRA?

IAU is typically better for IRA investors. The lower share price ($50 vs $460) makes it easier to invest specific dollar amounts and rebalance over time. The 0.25% expense ratio vs. GLD's 0.40% saves $150 per year on every $100,000 — meaningful over a multi-decade retirement accumulation period. Both are IRA-eligible and held by all major custodians.

What happens to my gold ETF if the ETF issuer goes bankrupt?

The gold is legally segregated from the issuer's assets. In bankruptcy, the fund's physical gold would be distributed to shareholders (via the Authorized Participant mechanism). This is meaningfully different from a bank deposit where the bank can rehypothecate your assets. That said, the custodian (e.g., HSBC, JPMorgan) also carries counterparty risk — if the custodian failed, the gold's legal separation from their assets becomes crucial. Gold ETF trust documents typically specify allocated gold that is not encumbered by the custodian's other liabilities.

Related Guides: Physical Gold with Low Premiums | Gold vs Silver 2026 | Portfolio Allocation | $6,000 Price Analysis

Disclaimer: This guide is for educational purposes only and does not constitute investment, tax, or legal advice. Expense ratios, AUM figures, and trading data change frequently and should be verified before any investment decision. Gold ETFs carry investment risk including potential loss of principal. Past tracking error does not guarantee future performance. Tax treatment described is based on current US federal tax law as of February 2026 and may change. Consult a qualified financial and tax advisor before investing.