Global gold ETF assets stood at roughly $526 billion at the end of June 2026, with holdings of 4,047 tonnes. Average daily trading volume in the first half of the year reached about $12 billion, up sharply from previous periods. The numbers underscore how exchange-traded funds have become a dominant way to invest in gold.
How gold ETFs work
Gold ETFs are structured as trusts that hold allocated bars in vaults. Their share prices track the spot price of gold minus fees. Authorized participants — typically large financial institutions — create and redeem ETF shares in large blocks to keep the market price close to the net asset value. That mechanism means investors can buy or sell shares throughout the trading day at prices that closely reflect the underlying metal.
Costs and fees
The two biggest gold ETFs in the U.S. charge different expense ratios. SPDR Gold Shares (GLD) has a gross expense ratio of 0.40%. The iShares Gold Trust (IAU) charges 0.25%. Those fees cover storage, insurance, and administrative costs. By contrast, buying physical gold comes with upfront premiums over spot, plus potential shipping, storage, and insurance costs that can add up over time.
Tax treatment
In the U.S., both physically backed gold ETFs and physical gold are taxed at the collectibles rate — up to 28% on long-term capital gains. That's higher than the rate for stocks or most other ETFs. Investors should factor that in when comparing returns.
Minimum investment and liquidity
Gold ETFs have a low barrier to entry: one share costs roughly the price of a fraction of an ounce. Physical gold typically requires at least a one-ounce coin or bar, which can run over $2,000. ETF trades settle instantly under standard brokerage settlement. Physical gold settlement is immediate for local cash deals but can take days if shipping is involved. The $12 billion in daily ETF trading volume means investors can get in and out quickly without the hassle of finding a buyer for a bar or coin.
The next quarterly data from the World Gold Council will show whether the trend toward ETFs continues to accelerate.
