NYSEMKT: GLDM
Key Data Points
This ETF is the smaller, more affordable sibling of the hugely successful SPDR Gold Shares ETF (GLD -4.35%), offering the same liquid, exchange-traded exposure to spot gold prices but with a lower expense ratio and a much lower share price. For investors who want simple access to physical gold through a regular brokerage account, this gold ETF does the job cleanly and efficiently.
Exchange-Traded Fund (ETF)
What is the SPDR Gold MiniShares Trust?
The SPDR Gold MiniShares Trust is organized as a grantor trust under the Securities Act of 1933. Shareholders own fractional, undivided beneficial interests in the trust, and the trust holds only physical gold bullion. This means investors receive direct exposure to real, allocated gold bars -- not gold stocks, futures, swaps, or synthetic instruments.
Because the trust holds physical bullion, its price closely tracks the spot price of gold, avoiding the roll costs and tracking issues that come with futures-based products. At launch, each share was designed to represent one-50th of an ounce of gold, making the ETF very accessible, especially for beginner investors.
How to buy the SPDR Gold MiniShares Trust
- Step 1: Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Step 2: Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
- Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Step 5: Submit your order: Confirm the details and submit your buy order.
- Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings of the SPDR Gold MiniShares Trust
The ETF holds only physical gold bullion, stored with two custodians:
- ICBC Standard Bank plc
- JPMorgan Chase (JPM -1.27%) Bank
Total gold held in the trust:
- 175.42 metric tons
- 5,639,777.13 ounces
There are no other asset types-- no equities, futures, options, or derivatives. Only allocated gold bars.
Should I invest in the SPDR Gold MiniShares Trust?
For investors who want exposure to gold without dealing with the hassle of buying physical bullion, this gold ETF is one of the most efficient options available. It avoids wide dealer spreads, storage and insurance costs, and the inconvenience of transporting or safeguarding metals. It trades easily in regular and tax-advantaged accounts, with bid-ask spreads often as low as $0.01.
For long-term investors, gold can help diversify a portfolio. It has historically served as a hedge against inflation, geopolitical tension, and currency weakness, and it tends to have a low correlation with traditional stocks and bonds. But it is still volatile, and its price can swing sharply -- especially when interest rates or macro sentiment shift.
Does the SPDR Gold MiniShares Trust pay a dividend?
No. This gold ETF does not pay dividends because it holds bullion, which does not generate income.
What is the SPDR Gold MiniShares Trust's expense ratio?
The expense ratio is 0.10%. This amounts to $10 per year for every $10,000 invested. The fee is deducted from the trust's assets and reflected in its daily net asset value (NAV).
Expense Ratio
Historical Performance of the SPDR Gold MiniShares Trust
Metric | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
Net asset value | 46.58% | 34.60% | 16.20% |
Market price | 45.60% | 34.65% | 16.17% |
Related investing topics
The bottom line on the SPDR Gold MiniShares Trust
This ETF offers a cost-efficient, straightforward way to gain exposure to physical gold without dealing with storage, security, or liquidity issues. It provides the same economic exposure as larger gold funds but at a much lower price point and with a cheaper fee structure. For anyone looking to add gold as a hedge or diversification tool, the ETF is one of the best options available.
