Gold ETF Selection Guide: Finding the Best Value Options in 2026

Understanding Gold’s Role in Your Portfolio

Through mid-December 2025, gold prices have surged approximately 62% year-to-date, marking what could be the fourth-strongest calendar year performance in at least 110 years. While many investors view gold as a traditional inflation hedge or defensive asset, the reality is more nuanced. Despite the S&P 500 climbing over 14% and inflation hovering at 3% annually—well below concerning levels—gold has still flourished. This performance suggests gold functions primarily as a volatility hedge. Its near-zero correlation with U.S. equities historically makes it an effective diversification tool, even in risk-on market environments where uncertainty remains a constant factor.

Why Cost Matters More Than You Think

When selecting among gold ETFs, controlling your expenses becomes paramount. Since virtually all spot gold ETFs hold identical physical bullion stored in secure vaults, the differentiator boils down to ownership costs. Two metrics matter: the expense ratio (annual management fee) and trading spreads. By choosing lower-cost vehicles, you preserve capital that would otherwise disappear to fees, directly improving long-term total returns. The most popular options—GLD and IAU—command the highest fees, which is precisely why newer alternatives deserve serious consideration.

Top Contenders for Gold ETF Investors

SPDR Gold MiniShares Trust (GLDM)

State Street’s response to the fee-conscious investor is the SPDR Gold MiniShares Trust, boasting a competitive 0.10% expense ratio. With over $25 billion in assets under management, GLDM offers exceptional liquidity and negligible trading spreads. The lower share price relative to its larger sibling makes it particularly accessible for capital-constrained investors. This combination of minimal fees, substantial assets, and tight spreads positions it as the first-choice option for those prioritizing cost efficiency.

iShares Gold Trust Micro (IAUM)

The iShares family took a similar approach with their Micro offering, charging just 0.09%—the lowest in the category. Despite managing roughly $6 billion in assets, this fund maintains excellent tradability and liquidity. The reduced share price offers the same accessibility advantage as GLDM. For investors focused exclusively on minimizing expenses, IAUM represents the current cost-leadership position in the physical gold ETF space.

abrdn Physical Gold Shares ETF (SGOL)

At 0.17%, SGOL carries a modestly higher fee structure, but includes a distinctive feature: ESG (environmental, social, and governance) considerations. The fund restricts holdings to gold refined after 2012 in compliance with the London Bullion Market Association’s Responsible Gold Guidance standards. This ensures refiners maintain environmental practices and combat money laundering, terrorist financing, and human rights violations. For values-conscious investors, this premium proves worthwhile despite slightly elevated costs.

Making Your Decision

Physical gold ETFs are fundamentally similar in composition, differing primarily in fees and asset bases. Your selection should center on expense ratios and share price accessibility. If ESG alignment matters to your investment philosophy, SGOL warrants consideration despite its comparative cost disadvantage. Otherwise, prioritizing the lowest-cost option directly enhances your wealth accumulation over time.