Home / Business and Economy / Gold ETF Fees: GLDM Outshines GLD on Cost Savings
Gold ETF Fees: GLDM Outshines GLD on Cost Savings
20 Oct
Summary
- GLDM attracts more new money due to its lower expense ratio.
- GLDM's 0.10% fee saves investors significantly over time compared to GLD's 0.40%.
- Tax implications must be considered when switching from GLD to GLDM outside retirement accounts.
New investors are channeling substantial funds into the SPDR Gold MiniShares Trust (GLDM), with new inflows reaching $499.8 million by October 14, 2026. This contrasts with SPDR Gold Shares (GLD), which saw $181.5 million in inflows during the same period. The primary driver for this preference is GLDM's significantly lower expense ratio of 0.10% compared to GLD's 0.40%.
This fee difference, a 0.30 percentage point gap, results in considerable savings over time. For instance, a $100,000 position in GLD could cost an extra $5,700 in fees over 20 years compared to GLDM, as gold yields no dividends to offset these expenses. Consequently, GLDM has demonstrated slightly higher returns, with a five-year annualized NAV return of 18.96% versus GLD's 18.62%.
GLD's higher fee is justified for active traders, institutions, and options market participants who benefit from its superior liquidity and established options trading. However, for long-term investors seeking gold exposure, GLDM offers a more cost-effective solution. Switching from GLD to GLDM outside of tax-sheltered accounts presents a tax challenge, as gains are subject to a 28% collectibles tax rate.
