At a glance
IAU charges 0.25% a year, above the 0.2% average of the 7 funds most like it (the 5th cheapest of 7). It has $60.11B in assets, the 2nd largest of that group. Over the past year it returned −1.6% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +25.4% a year. At its worst it fell 12.5% in the 2020 crash (S&P 500: 33.7%) and 20.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 14 months after the lows.
The short version
iShares Gold Trust (IAU) is a trust, not a conventional fund, that owns physical gold bars; each share is a small slice of that gold, and the aim is to track gold's price minus expenses. Only SPDR Gold Shares (GLD) is larger among the gold funds we compare. IAU's 0.25% yearly fee undercuts GLD's 0.40% but exceeds several rivals', including iShares' own IAUM at 0.09%, and it pays no income.
Price history
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IAU -1.6% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IAU price data to Nov 2, 2026 | -8.6% | -1.6% | +25.4% | +16.9% | +11.6% | +10.7% |
- Over the year to Nov 2, 2026, IAU returned -1.6%, 7th of 8 among similar funds.
- Its 5-year annualized return was +16.9% and its 10-year +11.6%.
- In the 2020 COVID crash it fell 12.5% and regained its old high 0.7 months after the low.
- Its worst full calendar year was 2013 (-28.3%); its best was 2025 (+64.0%).
- The deepest fall in its price history was 45.1% (Aug 22, 2011 to Dec 2, 2015), recovered by Jul 27, 2020.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -8.7% |
| 2025 | +64.0% |
| 2024 | +26.9% |
| 2023 | +12.8% |
| 2022 | -0.6% |
| 2021 | -3.9% |
| 2020 | +25.8% |
| 2019 | +18.0% |
| 2018 | -1.8% |
| 2017 | +12.9% |
| 2016 | +8.3% |
| 2015 | -10.6% |
| 2014 | -2.0% |
| 2013 | -28.3% |
| 2012 | +6.9% |
| 2011 | +9.6% |
| 2010 | +29.5% |
| 2009 | +23.9% |
| 2008 | +5.1% |
| 2007 | +30.4% |
| 2006 | +22.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 24.1% over that stretch · deepest drop along the way 29.2%, back to its old high 10.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 3.6% over that stretch · deepest drop along the way 12.5%, back to its old high 0.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.2% over that stretch · deepest drop along the way 20.9%, back to its old high 14.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2021 | $0.0424 | -78.8% |
| 2020 | $0.1996 |
What's inside
The trust holds physical gold directly, worth $60.11B 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
IAU has no index and no manager making choices. Its annual report says the trust holds gold: it is not actively managed, holds no futures contracts and does not lend its gold. Each business day after 4 p.m. New York time, the trustee, The Bank of New York Mellon, values the gold at the LBMA Gold Price, a daily London benchmark set by electronic auction.
The custodian, JPMorgan Chase Bank's London branch, may store the bars in New York, London or Toronto. The gold is allocated, meaning specific bars are recorded as the trust's property. iShares posts the bar list online, and Bureau Veritas inspected the vaults on December 5, 2025. The custodian's insurance protects the bank, not the trust.
Large firms create and redeem shares in blocks of 50,000 in exchange for gold, which helps keep the share price near the gold's value. The gap can widen late in the trading day, after the London, Zurich and COMEX gold markets close. The trust pays its 0.25% sponsor fee out of its gold, so each share's gold slowly shrinks. Legally, it is a grantor trust: shareholders are treated as owning a slice of the gold itself. It is not registered under the Investment Company Act of 1940, so holders lack some standard fund protections.
What it really costs
- IAU charges 0.25% a year, versus an average of 0.2% for the similar funds below (5th 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
IAU has gained during some stock crashes, notably 2008, but it pays no income and has had deep slumps of its own, so it fits as a diversifier rather than a core or income holding.
IAU can offset stock losses at times, but its record is mixed. While stocks fell from October 2007 to March 2009, it gained 24.1%, though it dropped 29.2% along the way and needed about 10 months to recover. It lost 3.6% during the 2020 COVID crash and 7.2% in the 2022 bear market, when a 20.9% slide took about 14 months to recover. Its worst calendar year was 2013, down 28.3%. Its deepest drop, 45.1% from August 2011 to December 2015, wasn't recovered until July 2020. Cashing out during such a stretch would lock in losses.
Gold pays no income, and IAU made no payouts in the year to October 27, 2026, so withdrawals mean cashing in shares. Its 0.25% sponsor fee is above the 0.2% average of similar gold funds. Past results don't predict future ones, and a plan needs to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting gold exposure through physical bars in allocated vault storage, with no futures contracts, gold lending or active management involved.
- Investors who value size: with $60.1 billion in assets as of June 30, 2026, IAU trails only SPDR Gold Shares (GLD) among similar funds.
- Those seeking a diversifier that has held up in some stock crashes, including a 24.1% gain from October 2007 to March 2009.
Look elsewhere if
- Cost-focused gold investors: SPDR Gold MiniShares (GLDM) charges 0.10% and iShares Gold Trust Micro (IAUM) 0.09%, versus IAU's 0.25% sponsor fee.
- Anyone needing regular income: IAU made no payouts in the year to October 27, 2026, so spending from it means cashing in shares.
- Investors unable to sit through long slumps: IAU fell 45.1% from August 2011 to December 2015 and didn't regain its peak until July 2020.
Close alternatives
Matched by other funds that hold gold directly.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IAU this fund | 0.25% | $60.11B | -1.6% | +25.4% |
| GLD SPDR Gold Shares | 0.4% | $130.10B | -1.8% | +25.2% |
| 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% |
| AAAU Goldman Sachs Physical Gold ETF | 0.18% | $2.40B | +1.6% | +26.3% |
Compared head to head: GLD vs IAU · IAU vs IAUM · all comparisons →
Questions investors ask
What's the difference between IAU and GLD?
Mainly cost and size. Both hold physical gold and aim to track the gold price. IAU's sponsor fee is 0.25% a year, compared with 0.40% for SPDR Gold Shares (GLD). GLD is bigger, with about $130.1 billion in assets versus IAU's $60.1 billion, both as of June 30, 2026. Returns have been close: over the year to October 27, 2026, IAU returned 1.6% and GLD 1.4%; over three years, 26.2% and 26% a year.
What is IAU's expense ratio?
It is 0.25% a year, charged as a sponsor fee that the trust pays out of its gold. That is below the 0.40% charged by SPDR Gold Shares (GLD) but above the 0.2% average of similar gold funds. Lower-cost funds that also hold gold directly include iShares Gold Trust Micro (IAUM) at 0.09%, SPDR Gold MiniShares Trust (GLDM) at 0.10%, abrdn Physical Gold Shares ETF (SGOL) at 0.17% and Goldman Sachs Physical Gold ETF (AAAU) at 0.18%.
Does IAU pay dividends?
No. Gold produces no interest or dividends, and IAU made no payouts in the year to October 27, 2026. Any return comes from changes in the gold price, minus the 0.25% sponsor fee. The trust pays that fee out of its gold, so the gold behind each share slowly shrinks. Investors who want cash from IAU have to cash in shares, which can mean locking in a loss after gold prices fall.
Is IAU backed by physical gold?
Yes. IAU's annual report says its shares are backed by physical gold held in allocated form, meaning specific bars are recorded as the trust's property. The custodian, JPMorgan Chase Bank's London branch, may store them in New York, London or Toronto. The trust does not lend its gold, and the custodian has no right to lend it. iShares posts the bar list online, and Bureau Veritas inspected the vaults on December 5, 2025.
How are gains on IAU taxed?
Like gold itself, not like a stock fund. Because IAU is a grantor trust holding physical metal, US investors' long-term gains can be taxed at the collectibles rate of up to 28%, rather than the usual capital-gains rates. That matters mainly in taxable accounts, since tax-deferred accounts such as IRAs follow their own rules. A tax professional can explain how this applies to a particular situation.