Gold delivered a historical rally over the past couple of years, surging from $2,000 an ounce at the beginning of 2024 to more than $5,500 at its peak in early 2026. Central bank buying was a big supportive catalyst, but so was shifting investor sentiment, safe haven demand, and the desire to own tangible assets.
With more than $163 billion in assets, the SPDR Gold Shares ETF (GLD +0.51%) is the biggest fund in this space. But it's not necessarily the best. Its 0.40% expense ratio is higher than average in the gold ETF category. Since cost is the biggest differentiator in this group, the cheapest options are often the best.
Instead, investors might want to consider the SPDR Gold MiniShares Trust ETF (GLDM +0.48%), which carries an expense ratio of just 0.10%. Its $32 billion in total assets under management are more than enough to ensure high liquidity.
If you're wondering why State Street offers two gold ETFs, the larger SPDR Gold Shares ETF has much more liquidity and is better suited for institutional traders looking to make larger trades. The smaller SPDR Gold MiniShares Trust ETF has a lower expense ratio that will be more attractive to retail traders. Two different ETFs. Two different target audiences (although both can use either ETF).
Over the past five years, GLDM has returned an average of 22.1% per year. That beats the SPDR Gold Shares ETF's 21.8% average annual return and is due almost entirely to its fee structure. In a sector where the underlying asset is essentially the same, investors should go with the lower-cost option.
Gold's rally has been driven by central bank buying, tariff- and geopolitics-related dollar weakness and, elevated inflation rates. The case for investing in gold now is pretty much the same one that drove prices higher over the past couple years.
The catalysts for further upside in precious metals are still in place. If buying a gold ETF for your portfolio, look for the cheapest one. In this case, the SPDR Gold MiniShares Trust ETF is the best option.