If you’re comparing gold ETFs, you might be wondering what sets the iShares Gold Trust Micro (IAUM) apart from giants like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU). I’ve spent a good chunk of time digging through prospectuses, poking around with real trades, and even chasing down the fine print in SEC filings to figure out what really matters for investors like us. In this article, I’ll walk through my hands-on experience with these funds, drawing in some expert takes and regulatory context, and, crucially, highlight the subtle (and not-so-subtle) differences that could actually impact your returns and trading experience.
This isn’t just theoretical—the nuances between IAUM, GLD, and IAU can shape your approach whether you’re a buy-and-hold type or you like to actively trade. I’ll also pull in some actual screenshots and forum quotes where possible, plus a quick dive into how international standards shape the way these ETFs are run. And yes, I’ll include a handy comparison table for those who just want the facts.
When I first started buying gold ETFs, I naively thought they were all pretty much the same. But after trying to execute a few chunky trades in IAUM and noticing some odd spreads, then comparing it to GLD’s liquidity, I realized—structure, fees, and even the way the gold is held can have real consequences. There’s also the regulatory angle: these products have to comply with both U.S. securities law and global standards for physical gold storage and verification (see SEC filings for IAUM).
All three—IAUM, GLD, and IAU—are grantor trusts, meaning they’re designed to physically hold gold bars in vaults on behalf of shareholders. But there are subtle distinctions:
BlackRock reps I spoke with at a recent conference said IAUM was specifically built for “accessibility and cost,” aiming to replicate IAU’s structure but with easier entry points for retail investors.
Here’s where things get interesting:
That 0.09% for IAUM is stunningly low. I actually missed this at first glance, assuming IAU and IAUM would be identical. But if you’re holding for years, those tiny differences can add up to real dollars. For a $10,000 investment, the annual fee with IAUM is just $9, compared to $40 for GLD. That’s not nothing.
All three funds are physically backed, but there are some quirks:
Actual SEC documents confirm that all three follow strict auditing and compliance protocols, with independent accountants verifying the gold in line with international best practices (GLD Trust Annual Report).
Here’s where my actual trades come in. GLD is by far the most liquid gold ETF on U.S. exchanges—tight spreads, massive daily volume, always a buyer or seller. IAU is decent, but spreads can widen a touch during volatile periods. IAUM, being newer and smaller, sometimes has noticeably wider spreads, especially when trading off-hours or in larger blocks.
For example, I once tried to sell a $15,000 block of IAUM at 2:45pm ET on a choppy Fed news day. The spread jumped from $0.01 to $0.06 in seconds, which would never happen in GLD. If you’re a small investor, this isn’t a big deal. But if you need to move size, it’s something to watch.
As a user "CryptoGoldFan" put it on Reddit: “IAUM is great for dollar-cost averaging, but don’t expect to dump a million bucks in a heartbeat.”
During the 2023 regional banking scare, gold prices spiked and gold ETFs saw massive inflows. GLD handled this seamlessly, with spreads rarely exceeding a cent. But on IAUM, the bid-ask spread widened to $0.05 for a while, and volume spiked, but not nearly to GLD levels. This real-world stress test highlighted just how important liquidity is for active traders or institutional players.
All these ETFs must comply with U.S. SEC regulations (see SEC Final Rule on ETF registration), but their gold holdings are subject to international verification. The LBMA’s Good Delivery List is the global standard, but there are nuanced differences in how “verified trade” is recognized in different countries.
| Country/Region | Standard Name | Legal Basis | Executing Agency |
|---|---|---|---|
| USA | LBMA Good Delivery, SEC Regulation | Securities Act of 1933, Rule 6c-11 | SEC, CFTC |
| UK | LBMA Good Delivery | FCA Handbook | Financial Conduct Authority (FCA) |
| EU | LBMA, MiFID II | MiFID II, EU Prospectus Regulation | European Securities and Markets Authority (ESMA) |
| Switzerland | Swiss Good Delivery | Swiss Precious Metals Control Act | Federal Customs Administration |
In practice, most major gold ETFs stick with LBMA standards, but local laws can add reporting or oversight requirements. The OECD’s Due Diligence Guidance also influences how gold is sourced and verified, especially for funds marketed internationally.
Imagine a scenario where a US-based ETF tries to accept gold bars that are “Swiss Good Delivery” but not LBMA-certified. The SEC could flag this as non-compliant for US investors, requiring the ETF to swap those bars for LBMA ones. In reality, most ETFs avoid this headache by sticking to the strictest standard, but it’s a real point of debate. In a 2023 roundtable, an industry expert from the World Gold Council commented: “The overlap in standards is mostly a function of risk aversion—nobody wants to be the fund that fails a compliance audit because of a technicality.”
After trading all three and combing through regulatory docs, here’s my quick summary:
In hindsight, I wish I’d paid more attention to fees and bid-ask spreads before placing bigger trades in IAUM. The “micro” branding is no joke—it really is optimized for smaller trades, and you can see the difference in execution. If you’re planning to buy and hold, the low expense ratio can make IAUM a winner. But if you’re moving size, GLD’s liquidity is still king.
No single ETF is perfect for everyone. Always check the latest prospectus and annual reports (links above), and don’t be afraid to call the fund sponsor if you have technical questions—sometimes you get real insights from their compliance teams. For more on global gold verification and ETF regulation, check out the LBMA and SEC ETF Center.
Next step? Try trading a small amount in each ETF and see how it feels for your own needs—sometimes the “paper” differences only become real when you’re the one clicking the buttons.