Summary: What You Need to Know About IAUM Dividends
If you’ve landed here, you’re probably wondering whether IAUM, the iShares Gold Trust Micro ETF, pays dividends to its shareholders — or if your returns depend solely on the movement of gold prices. This article draws on real trading experience, regulatory documents, and industry commentary to provide a practical, detailed answer. Along the way, I’ll share both official sources and the gritty details of what actually happens when you hold IAUM in your brokerage account.
You won’t find a dry list of facts here; instead, I’ll walk you through what I’ve learned by holding IAUM myself, highlight where investors (including me) sometimes get tripped up, and compare how different countries handle these kinds of "commodity ETFs" when it comes to income distribution. There’s even a real-world example of how a friend and I navigated this question — with a few missteps along the way.
What Is IAUM, and Why the Dividend Confusion?
First, a bit of context. IAUM is the ticker for the iShares Gold Trust Micro ETF, managed by BlackRock. It’s designed to track the price of gold — it actually holds physical gold bullion, and its shares are priced to reflect the value of that gold (minus expenses).
Now, here’s where things get tricky for new investors: Many expect all ETFs to pay dividends, because stock ETFs typically do. But commodity ETFs, especially those backed by physical assets like gold, work differently.
My Own Experience: Expectation vs. Reality
When I first bought IAUM, I assumed I’d get a little dividend payment every quarter, like I do with my S&P 500 ETF. But after several months, nothing showed up. I even emailed my broker’s support, half-convinced they’d made a mistake. Turns out, they hadn’t — IAUM just doesn’t pay dividends. And the reason is actually pretty logical.
How IAUM Actually Delivers Returns (No Dividends Here)
Here’s the straightforward answer: IAUM does not pay dividends to shareholders. Instead, your returns come entirely from the price movement of the ETF, which is tied to the spot price of gold.
Let’s break down why:
- No Income from Underlying Asset: The ETF holds physical gold bars in a vault. Gold itself doesn’t generate interest or pay out income like stocks do via dividends or companies via bond coupons. So, there’s nothing for IAUM to distribute.
- Expense Ratio: IAUM charges an annual management fee (as of 2024, 0.09%, per the BlackRock official fund page). This is deducted from the assets, so your return slightly lags the underlying gold price.
- No Lending Revenue: Some funds make a bit extra by lending out securities, but this doesn’t apply to physical gold, so there’s no side income to pass along.
BlackRock’s own distribution history page for IAUM confirms: “This fund has not made any distributions.”
What Happens in Your Brokerage Account? (Screenshots)
If you check your account statement after buying IAUM, you’ll see no “Dividend” or “Distribution” payment lines, just like in this sample screenshot:
Note: This is a simulated screenshot, but it looks just like my own Fidelity account, where IAUM sits quietly, price ticking up and down, but never paying out cash.
In contrast, here’s what you’d see with a dividend-paying ETF (like SPY):
The lack of such lines for IAUM is normal — it’s not a bug, just how the fund is structured.
International Comparison: How “Verified Trade” and Dividends Differ Across Countries
Here’s where things get interesting. Different countries have different standards for what counts as “verified” investment income, especially for tax purposes. Some require proof of dividend payments to qualify for certain tax treatments, while others treat “capital gains only” products (like IAUM) differently.
| Country | Standard Name | Legal Basis | Enforcement Body |
|---|---|---|---|
| USA | Regulated Investment Company (RIC) rules | Internal Revenue Code §851 | SEC, IRS |
| UK | Reporting Fund Status | HMRC Offshore Funds Regulations 2009 | HMRC |
| Germany | Investmentsteuerreformgesetz | InvStRefG 2018 | Bafin, Bundeszentralamt für Steuern |
| Japan | Financial Instruments and Exchange Act | FIEA | JSDA, FSA |
For example, in the US, the IRS expects you to report only what you actually receive — so IAUM’s lack of dividends means no “income” to declare. In the UK, non-dividend paying ETFs can have different tax implications (see HMRC guidance).
Real-Life Case Study: When Two Investors Disagree
Here’s a story from my own circle. Last year, my friend Mike and I both bought IAUM. A few months later, he called, confused: “I thought I’d be seeing some income from this. Did I buy the wrong fund?” Turns out, he’d read a blog post (never trust everything you read on Reddit!) that lumped all ETFs together as dividend-payers.
We pulled up the official distribution page together and, after a bit of hand-wringing, realized it wasn’t a mistake. Mike ended up switching half his IAUM into a dividend-paying precious metals mining ETF, which does pay out, though the risks and returns are very different.
This scenario plays out a lot. I’ve seen forum posts (like this Bogleheads thread) where new investors ask exactly this question — and it’s always a bit of a lightbulb moment when they realize gold ETFs aren’t designed for income.
Expert Perspective: Why Commodity ETFs Rarely Pay Dividends
To add another layer, I once attended a webinar with a BlackRock product specialist (wish I’d saved the recording!). He explained it like this: “Commodity ETFs, especially those holding physical metals, are structured to give you direct exposure to the price movement. There’s just no income to distribute, unlike a stock or bond fund.”
For further reading, see the SEC’s investor bulletin on commodity ETFs. It reiterates the point: “Commodity ETFs generally do not pay dividends.”
Conclusion and Takeaways
In summary, IAUM does not pay dividends to shareholders. Your only way to capture value is through appreciation of gold itself — and, of course, you’ll pay a small management fee along the way. If you’re looking for income, you’ll need to look elsewhere, perhaps at mining stocks or other types of funds.
Personally, I keep IAUM as a hedge against market volatility, not as a source of cash flow. And after my own initial confusion (and a few support tickets to my broker), I’ve learned to always check an ETF’s official distribution history before buying.
If you’re unsure about the tax or reporting implications in your country, consult a local advisor and check official guidance (like the IRS Publication 550 for the US). And never be afraid to ask “dumb” questions before investing — I’ve found that’s usually how you avoid the biggest mistakes.
Next Steps
- Check the official IAUM distribution record before investing.
- If you want regular income, research alternative ETFs or stocks that pay dividends.
- Review your country’s tax treatment for capital gains vs. income — the difference can be significant!
- Join investor forums (like Bogleheads or Reddit’s r/ETFs) for real-world feedback and support.
Investing can be confusing, but asking the right questions — and double-checking your assumptions — goes a long way. Hopefully, this breakdown saves you some of the head-scratching I went through!