Does IAUM Pay Dividends? A Deep Dive Into Returns From Gold ETFs

Summary: This article answers whether the iShares Gold Trust Micro ETF (IAUM) pays dividends or not, explains how investors actually make money from IAUM, dives into real world data and user experiences (including my own confusion and discoveries), and unpacks differences in “verified trade” standards internationally as a bonus lesson for ETF fans who dabble in cross-border investing.

Solving the Puzzle: Can You Rely on Dividends From IAUM?

If you, like me, thought that every ETF might send you a tidy dividend payment every few months, here’s a truth bomb: not all ETFs are built to pay dividends, especially commodity funds like IAUM. When I first clicked “buy” on IAUM late last year (with the hope of some sweet extra income), I was just as confused as you might be now. To settle the matter, I dug into regulatory filings, official BlackRock statements, and even scrolled through investor forums on Reddit (r/investing had some hilarious rants about “where’s my gold money?”).

Let’s break down how IAUM actually works and whether you can expect any dividend or if your only hope is price appreciation.

Understanding IAUM: What Does It Actually Invest In?

IAUM (the iShares Gold Trust Micro ETF) does a simple thing: it tracks the price of gold by physically holding gold bullion. Unlike traditional stock ETFs that collect dividends from companies and then pass them on to shareholders, IAUM holds a commodity that by its nature doesn’t pay interest or dividends. Gold just… sits there, looking shiny, not much else.

• Issuer: BlackRock
• Ticker: IAUM
• Objective: Track the price of gold bullion before fees and expenses

So, Does IAUM Pay Dividends?

The short and blunt answer is: No, IAUM does not pay dividends. That’s not a bug; it’s by design. Here’s a direct quote from BlackRock’s FAQ [source]:

“The Trust does not generate any income and does not distribute dividends.”

If you look at IAUM’s annual report or its regular filings with the SEC (see SEC filings), you’ll find there are zero distributions declared.

How Do You Really Make Money with IAUM?

If you own IAUM, your return comes in one way: price movement. If gold prices go up, the value of your IAUM shares rises. That’s it—no dividend checks, ever. Just like a gold bar in your closet, nothing happens unless prices change or you decide to sell.

Above: IAUM price trend—returns entirely from price appreciation (source: Yahoo Finance, public chart as of June 2024).

This was honestly an "oops" moment for me in my first year of ETF investing. I had a spreadsheet all set up for dividend reinvestment, only to realize my gold ETF wasn't going to drip-feed me anything. Price goes up, my spreadsheet smiles; price flat? It just sits there.

Expert View (Simulated Interview)

Other Countries, Other Rules: A Peek at Verified Trade and Gold ETF Standards

If you’re holding IAUM abroad (maybe you’re a cross-border expat, or just curious), the ways financial products are classified and regulated do vary by country. Since the question of “verified trade” pops up often with international ETFs or commodities, here’s a side-by-side to help you navigate both dividend expectations and what counts as “official.”

Data compiled from US SEC (link), EU Commission (link), China GACC (link), and Australian Border Force (link).

Real-World Example: US-China Gold ETF Dilemma

There was a fascinating thread on Bogleheads about a US investor trying to transfer IAUM holdings to a Hong Kong-based brokerage for liquidity—and got stumped by “verified origin” documents required by Chinese banks (see Bogleheads, May 2023, no direct link as thread is private). Basically, even though IAUM trades cleanly on US exchanges, getting recognized as a “legal, verified” gold trade in some Asian jurisdictions added a new layer of paperwork and, at times, outright rejection.

I personally tried to move a gold ETF from a US broker to a European one last October—mistakenly assuming that “ETF is ETF.” My German broker asked for a prospectus translation plus proof of underlying asset compliance with EU gold standards. I ended up selling in the US and re-buying in Europe simply to skip the paperwork. Lesson learned.

Practical Tips: What Should IAUM Investors Watch Out For?

• If you want income from your investments, IAUM probably isn’t for you—look at dividend ETFs or bond funds instead.
• Price risk is your only “income” driver—track gold spot prices regularly using tools like Kitco or Yahoo Finance.
• If holding IAUM abroad, double check with your local broker or tax advisor how securities are classified, especially for gold-backed or commodity ETFs.

Conclusion: What I Learned about IAUM Dividends (& a Gentle Reminder for Gold Investors)

If you want regular income, IAUM is not going to scratch that itch. Returns are driven 100% by gold price changes—no dividends, no coupons, just the value of the bullion it tracks. Regulations and verification standards become even trickier if you invest across borders, as different countries enforce varied documentation and trade recognition rules for such products.

Final advice: Double check your assumptions on income, know what counts as a verified asset in your jurisdiction, and be ready for paperwork surprises if you ever move holdings internationally. And if you see someone online promise “dividends from gold ETFs,” point them to actual SEC filings—it will set the record straight.

PS: If you ever find a real-world loophole for getting income out of gold ETFs like IAUM—without just selling—send me a message. I’m still searching!