GLDM is in many ways similar to its sibling ETF, GLD. This ETF is much newer, having come into existence in June of 2018. The fund holds about 1/10 as much gold underlying each share as does GLD.
But gold ETFs represent an investment in one thing: gold. The mechanics of the investment in gold will vary among these ETFs will vary a bit, but at the end of the day investing in a gold ETFs is about tracking the price movement of a single precious metal.
GLDI adds a new twist to the gold segment, tracking an index that uses a covered-call strategy to add income to an asset devoid of yield. The note's index mimics a hypothetical GLD position, coupled with a short position in GLD calls expiring the next month with strike prices 3% higher than the price of GLD at the time of sale.
The SPDR Gold Shares reflects the performance of the price of gold bullion, less expenses.
The GLD ETF began trading at approximately 1/10 the price of gold. However, the amount of gold held by each share is eroded slightly over time as the ETF charges investors a 0.4% annual fee. These fees slowly lower the NAV of the ETF, thus slightly reducing the amount of gold that a share is worth each year.
Its structure as a grantor trust protects investors, trustees cannot lend the gold bars. However, taxes on long-term gains can be steep, as GLD is deemed a collectible by the IRS. Also, GLD's NAV has a larger handle, which corresponds to more gold exposure per share.
World Gold Council is an affiliate of GLD’s sponsor. GLD ® is a registered trademark of World Gold Trust Services, LLC used with the permission of World Gold Trust Services, LLC. Standard & Poor's ®]
The sole holding of each of these ETFs is gold bullion. There are 10 ETFs focused exclusively on gold that trade in the U.S., excluding leveraged or inverse funds, as well as those with under $50 million in assets under management (AUM).