Quick answer
GLD is the SPDR Gold Shares ETF, the world’s largest physically backed gold fund. Each share represents a fraction of an ounce of gold held in a secured London vault, so GLD tracks the spot gold price minus a 0.40% annual fee. It lets you hold gold exposure in an ordinary brokerage account without storing metal. GLD is US-listed on NYSE Arca; outside the US, trading spot gold (XAU/USD) is the common way to trade the same price.
GLD is an exchange-traded fund launched in 2004 by State Street to track the price of gold bullion. It is the largest and most liquid gold ETF in the world, holding allocated physical gold bars in secured vaults. Each GLD share is designed to represent roughly one-tenth of a troy ounce of gold, a fraction that drifts slowly lower over time because the fund’s running costs are paid out of its gold. Buying GLD gives you exposure to the gold price without having to buy, store or insure physical metal yourself.
How GLD works
Physical backing. GLD holds allocated, serial-numbered gold bars with a custodian in London, overseen by an independent trustee. One share, a slice of an ounce. The 0.40% annual expense ratio is deducted from the gold, so the gold per share slowly declines. It tracks spot gold almost one-for-one, minus the small drag of fees. Creation and redemption. Large institutions called authorized participants create and redeem big blocks of shares by delivering or receiving physical gold, and that mechanism keeps GLD’s market price tightly aligned with the value of the gold it holds. No leverage, no expiry: you own a share of a trust, so there is no margin call or funding cost, and it trades like a stock on NYSE Arca under the ticker GLD.
How big is GLD and what does it hold?
GLD is the largest gold ETF in the world, with tens of billions of dollars in assets at most times. It holds allocated bars in a secured London vault and publishes its bar list and daily holdings, so the metal behind each share is auditable. That transparency and scale are a big part of why institutions use GLD as their default way to hold or trade gold exposure, even though cheaper funds exist.
GLD vs IAU vs physical gold vs gold CFDs
| Vehicle | What you hold | Leverage | Typical cost | Best for |
| GLD | Share of a gold trust | None | 0.40% per year | Large, liquid US ETF exposure |
| GLDM (SPDR Gold Mini) | Share of a gold trust | None | ~0.10% per year | Lower-fee buy-and-hold |
| IAU (iShares Gold) | Share of a gold trust | None | 0.25% per year | Lower-fee ETF exposure |
| Physical gold | The metal itself | None | Storage + spread | Holders who want the bar |
| Gold CFD / XAU/USD | A contract on the price | Yes | Spread (+ overnight) | Active traders, long or short, non-US access |
GLD and taxes (US)
In the United States, physically backed gold ETFs like GLD are generally treated as collectibles for tax purposes rather than as ordinary shares. That means long-term gains can be taxed at a maximum rate of 28%, higher than the long-term rate on most stocks. It is one reason some investors hold gold inside a tax-advantaged account, or trade gold rather than hold it. This is general information, not tax advice; confirm your situation with a qualified adviser.
Is GLD a good investment?
GLD is a simple, liquid way to add gold to a portfolio: deep liquidity, no storage or insurance, and a price that closely tracks gold. The trade-offs are a 0.40% annual fee that compounds, no income or yield, no leverage, and you never hold the metal itself. Cost-sensitive long-term holders often prefer the cheaper GLDM or IAU, while active traders prefer a leveraged instrument. Whether GLD suits you depends on why you want gold: a long-term diversifier, or a market to trade.
How to get gold exposure, step by step
- Decide your goal: long-term diversification or active trading.
- Choose the vehicle: a gold ETF (GLD, the cheaper GLDM or IAU), physical gold, or spot gold and gold CFDs for leverage and two-way trading.
- Pick a platform that offers it, and check the cost, the spread or expense ratio, and the custody.
- Size the position as part of a diversified portfolio, not a single concentrated bet.
- Decide your exit in advance: a target allocation to rebalance to, or a stop on a trade.
How to trade gold if you cannot buy GLD
GLD is US-listed, so access depends on your broker and your country. If you trade outside the US, or you want leverage and the ability to go both long and short, spot gold (XAU/USD) and gold CFDs are the usual alternatives, and they track the same underlying gold price. On a regulated multi-asset platform like Volity you can trade XAU/USD directly from one account, with transparent spreads and built-in risk tools. See our guide on how to trade XAU/USD and the markets we cover.
