The average amount on loan of GLD shares from March 2016 through March 2017 was $387 million, compared to $77 million for IAU. Investors because of the revenues it can generate.

Securities lending can potentially offset costs for institutional SPDR® Gold Shares ETF Capital Markets Perspective For the same-sized transaction, the total bid-ask spread costs trading GLD options will be about Also, the trading costs related to options is subject to the same per-share The higher volume means tighter spreads and lower trading costs using GLD options versus using IAU options. GLDs options market is more than 3,816 times larger than its closest competitor, IAU, as the Trading GLD options is less expensive for the same reasons as trading GLD shares. Because investors need to buy roughly 10 times as many shares of IAU as GLD shares for similar gold exposure, costs related to bid-ask spreads and commissions are 10 times as much on IAU than on GLD, when those fees are paid on a per-share basis. The same $1 million investment buys 8,423 shares of GLD, compared to 83,264 shares of IAU. Compare a hypothetical $1 million dollar investment in GLD versus GLDs higher share price is also a factor in its advantage for large investors. US-listed competitor, the iShares Gold Trust (IAU). The table above shows GLD and its biggest Bid/Ask Spread data is for the month of March 2017. Source: Bloomberg Finance, L.P., SSGA, as of. Thats why the bid-ask spread on GLD, measured in basis points, is lower Trading costs associated with the same amount of gold exposure are about 10 times less using GLD than using IAU. Also,Įach share of GLD amounts to about 10 times more gold exposure than shares of IAU, GLDs biggest competitor by assets.1 That means that for any given transaction, total per-share Higher liquidity tightens bid-ask spreads, lowering trading costs for investors, whether they are buying, selling or rebalancing. Trading volume table above includes GLD and its biggest US-listed competitor in terms of assets under management, the iShares Gold Trust (IAU). Source: Bloomberg Finance, L.P., State Street Global Advisors (SSGA), as of. GLD is the most traded gold ETF in the US, with a 12-month average daily notional trading volume 13 times higher than itsġ2-Month Average Daily Notional Trading Volume Size, because trading volume is a key determinant of cost. One factor to consider for institutional investors is the market GLDs 2004 debut, so for institutional investors, understanding that there are many factors to consider when choosing a gold ETF is of paramount importance. SPDR Gold Shares (GLD®) was the first US-listed gold bullion-backed exchange traded fund (ETF).

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