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The iShares Gold Trust (IAU) is an exchange-traded fund that seeks to track the performance of the price of physical gold, providing investors with direct exposure to the precious metal without the need to purchase, store, or insure gold individually. The ETF is managed by BlackRock (iShares) and trades under the ticker IAU on the NYSE Arca.
Classified as a commodity / alternative investment ETF, IAU aims to reflect, before fees and expenses, changes in the spot price of gold. To achieve this objective, the fund holds physical gold in custody, stored in secure vaults, and seeks to closely mirror the metal’s price movements in the global market.
The value of IAU shares tracks the international gold price, adjusted for the fund’s operational costs such as custody, insurance, and administration. The ETF does not employ leverage and does not use derivatives for speculative purposes.
Composition and exposure profile
IAU’s portfolio consists exclusively of physical gold, held in standardized bars and safeguarded by specialized financial institutions. The fund does not invest in gold mining stocks, futures contracts, or other gold-related financial instruments.
The ETF’s exposure is directly linked to fluctuations in the price of gold, an asset historically used as a store of value and a hedge against inflation, market volatility, and geopolitical risk. As gold does not generate income, the fund does not produce interest or dividend payments.
This structure makes IAU a suitable option for investors seeking portfolio diversification through real assets, with high liquidity and relatively low correlation to equities and fixed-income securities.
Structure and costs
Shares of IAU are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio compared to many physical gold ETFs and does not charge a performance fee. IAU does not make income distributions, as the underlying asset — physical gold — does not generate cash flow. The ETF has a single share class and trades exclusively under the ticker IAU.
History and evolution of the ETF
The iShares Gold Trust was launched in 2005, amid rising demand for financial instruments that provide simple, transparent, and efficient access to gold for both retail and institutional investors.
Since inception, IAU has become one of the leading gold ETFs globally, widely used in strategies focused on wealth preservation, portfolio diversification, and tactical allocation during periods of economic uncertainty.
Between 2020 and 2024, the ETF reflected significant movements in gold prices driven by expansionary monetary policies, global inflation concerns, geopolitical tensions, and shifting risk sentiment, while maintaining high liquidity and broad investor adoption.
