At a glance
FGDL charges 0.15% a year, below the 0.21% average of the 7 funds most like it (the 3rd cheapest of 7). It has $415.4M in assets, the 8th largest of that group. Over the past year it returned +1.6% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +26.2% a year.
The short version
Franklin Responsibly Sourced Gold ETF (FGDL) is a grantor trust that holds physical gold bullion and aims to track the price of gold, less expenses. What sets it apart is sourcing: it seeks to hold only bars refined on or after January 1, 2012, under London Bullion Market Association responsible-gold guidance. Its 0.15% yearly fee is below the 0.21% average of similar gold funds, though GLDM and IAUM charge less.
Price history
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FGDL +1.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FGDL price data to Oct 27, 2026 | -6.3% | +1.6% | +26.2% | — | — | +23.1% |
- Over the year to Oct 27, 2026, FGDL returned +1.6%, 4th of 8 among similar funds.
- Its worst full calendar year was 2024 (+27.3%); its best was 2025 (+64.2%).
- The deepest fall in its price history was 26.6% (Jan 29, 2026 to Jul 16, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -6.3% |
| 2025 | +64.2% |
| 2024 | +27.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
The trust holds physical gold directly, worth $415.4M as of Jun 30, 2026 (per its 10-Q). It does not hold stocks or bonds, so there is no holdings list.
How it works
FGDL does not follow an index or use a manager who picks investments. It simply holds gold bullion, plus cash if any, and aims to match the price of gold minus its fee. The gold sits in an allocated account at JPMorgan Chase Bank's London branch, the custodian. "Allocated" means specific bars are set aside for the fund rather than held as a general claim on the bank. The fund seeks to hold only London Good Delivery bars refined on or after January 1, 2012. All such bars were refined under the LBMA's Responsible Gold Guidance. The custodian tries, subject to available supply, to allocate these bars. In unusual conditions the fund may hold older bars for a time.
The fund values its gold at the LBMA Gold Price PM, set in a 3:00 p.m. London auction, and calculates its net asset value (NAV, the value of its gold minus liabilities) at 12:00 p.m. New York time. Large brokers called authorized participants create and redeem shares in blocks of 50,000 in exchange for gold. This helps keep the market price close to NAV.
The 0.15% sponsor fee covers ordinary costs. The fund sells small amounts of gold to pay it, so the gold behind each share slowly shrinks. It earns no income. It is a grantor trust, not a 1940 Act investment company, and it does not use futures.
What it really costs
- FGDL charges 0.15% a year, versus an average of 0.21% for the similar funds below (3rd of 7, cheapest first).
Structure and tax notes
- Structured as a grantor trust registered under the Securities Act of 1933, not as a 1940 Act investment company, so it lacks some fund-specific investor protections.
- Physically backed precious-metal trusts are taxed like the metal itself: in the US, long-term gains can be taxed at the collectibles rate of up to 28% rather than the usual capital-gains rates.
In a retirement portfolio
Gold often moves differently from stocks and bonds, but FGDL pays no income and has had steep drops, so it fits best as a small slice rather than a core holding.
FGDL's record is too short to show how it held up in a crisis. Its price history starts May 19, 2023, so it misses the 2008, 2020 and 2022 sell-offs. It gained in both of its full calendar years: 27.3% in 2024 and 64.2% in 2025. Gold can still fall hard, though. From January 29 to July 16, 2026, the fund dropped 26.6%, and it had not recovered as of October 27, 2026. Anyone selling shares to cover spending during a slide like that would lock in losses. The fund pays no income, so any cash taken from it has to come from selling shares. Its 0.15% yearly fee is below the 0.21% average of similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want physical gold and care that the bars were refined on or after 2012 under LBMA responsible-sourcing guidance.
- Cost-conscious gold buyers: the 0.15% fee is below GLD's 0.40%, IAU's 0.25% and the 0.21% average of similar funds.
- Investors adding a small slice outside stocks and bonds who can sit through drops like the 26.6% decline in 2026.
Look elsewhere if
- Retirees who need income: FGDL has paid no distributions, so getting cash out means selling shares.
- Investors focused only on the lowest fee: GLDM charges 0.10% and IAUM 0.09%, against FGDL's 0.15%.
- Taxable investors put off by collectibles treatment: long-term gains on physical-gold trusts can be taxed at up to 28%.
Close alternatives
Matched by other funds that hold gold directly.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FGDL this fund | 0.15% | $415.4M | +1.6% | +26.2% |
| GLD SPDR Gold Shares | 0.4% | $130.10B | -1.8% | +25.2% |
| IAU iShares Gold Trust | 0.25% | $60.11B | -1.6% | +25.4% |
| GLDM SPDR Gold MiniShares Trust | 0.1% | $27.30B | -1.5% | +25.6% |
| PHYS Sprott Physical Gold Trust | — | $10.70B | +2.4% | +25.4% |
| SGOL abrdn Physical Gold Shares ETF | 0.17% | $6.74B | +1.7% | +26.3% |
| IAUM iShares Gold Trust Micro ETF of Benef Inter… | 0.09% | $6.31B | +1.8% | +26.4% |
| OUNZ VanEck Merk Gold ETF | 0.25% | $2.54B | +1.6% | +26.2% |
Questions investors ask
Is FGDL good for a retirement portfolio?
It may work as a small diversifier, but it is not built for income or as a core holding. FGDL tracks gold and pays nothing out. It can also swing a lot: its 1-year volatility, a measure of how much its price moves, was 29.4% as of October 27, 2026. It fell 26.6% between January 29 and July 16, 2026. Its price history starts in May 2023, so it has not yet been through a major stock-market crash.
FGDL vs GLDM: which gold ETF is cheaper?
GLDM is cheaper. SPDR Gold MiniShares Trust charges 0.10% a year, compared with FGDL's 0.15%. Both funds hold gold directly. GLDM is much larger, with about $27.3 billion in net assets against FGDL's $415 million as of June 30, 2026. FGDL's main difference is its sourcing policy. It seeks to hold only London Good Delivery bars refined on or after January 1, 2012, under LBMA responsible-gold guidance.
Does FGDL pay a dividend?
No. FGDL earns no income and has recorded no distributions. Gold bullion pays no interest or dividends. The trust also sells small amounts of gold to pay its 0.15% sponsor fee, so the gold behind each share slowly shrinks. Anyone drawing cash from FGDL would have to sell shares. That can mean selling at a loss after a drop like the 26.6% decline in 2026.
What does responsibly sourced gold mean for FGDL?
It means the fund aims to hold only London Good Delivery gold bars refined on or after January 1, 2012. All of these bars were refined under the London Bullion Market Association's Responsible Gold Guidance, an industry sourcing standard. The custodian, JPMorgan Chase Bank's London branch, tries to allocate these bars, subject to supply. If newer bars are short, the fund may hold older bars for a time and switch back as soon as it reasonably can.
How is FGDL taxed?
FGDL is taxed like physical gold. Because it is a grantor trust that holds bullion, US investors are treated as owning a share of the metal itself. Long-term gains can be taxed at the collectibles rate of up to 28%, rather than the lower capital-gains rates that usually apply to stocks and stock funds. The rules work differently inside tax-deferred accounts such as IRAs, so the details are worth checking with a tax professional.