By James Whitfield, Precious Metals Analyst at BitGolder

Best Gold ETF for Long-Term Investment: 2026

The best gold ETF for long-term investment in 2026 is the iShares Gold Trust (IAU) for most investors — it combines a low 0.25% expense ratio, physical gold backing, and over $30 billion in assets under management. SPDR Gold Shares (GLD) remains the institutional benchmark. For cost-conscious investors, SPDR Gold MiniShares (GLDM) at 0.10% is the most affordable route to gold exposure in a brokerage account.

In short: The best gold ETFs for long-term investment are IAU (iShares Gold Trust, 0.25% expense ratio), GLD (SPDR Gold Shares, 0.40%), and GLDM (SPDR Gold MiniShares, 0.10%). All three hold physical gold allocated in LBMA-approved vaults. IAU offers the best balance of liquidity and low cost for long-term buy-and-hold investors.

What Makes a Gold ETF Ideal for Long-Term Investment?

Not all gold ETFs are built for long-term holding. The key variables that separate short-term trading vehicles from genuine long-term wealth preservation tools are expense ratio, physical backing, vault location, and liquidity depth.

Why Expense Ratio Is the Most Critical Factor

Over 20 years, a 0.30% annual fee difference compounds into a meaningful performance gap. A $50,000 investment in a 0.10% ETF versus a 0.40% ETF will differ by approximately $8,000–$12,000 over two decades, assuming consistent gold returns. For long-term investors, minimizing the fee drag is as important as picking the right metal exposure.

Our research team at BitGolder consistently flags expense ratio as the single most controllable variable in gold ETF performance. Everything else — gold’s spot price, macroeconomic conditions — is outside the investor’s control. Fees are not.

Physical Gold Backing vs. Synthetic Gold ETFs

Physically-backed gold ETFs hold allocated gold bars in insured vaults — the ETF share corresponds to a fractional ownership of real metal. Synthetic ETFs use derivatives to replicate gold’s price without holding the physical commodity. For long-term investment, physically-backed funds are universally preferred. They carry no counterparty risk from swap agreements and are fully redeemable in metal by authorized participants.

GLD, IAU, and GLDM are all physically backed by gold stored in HSBC London and other LBMA-accredited vaults. This physical foundation is what makes them appropriate long-term wealth storage instruments, not just trading tools. According to the World Gold Council, physically-backed gold ETFs globally held over 3,100 tonnes of gold as of early 2026.

Liquidity and Trading Volume for Long-Term Holders

Even long-term investors need exit liquidity. GLD averages over $1.5 billion in daily trading volume — the most liquid gold ETF in the world. IAU follows with approximately $400 million in daily volume. GLDM, being newer, has lower but growing volume around $100–150 million daily. For large institutional-scale holdings, GLD’s liquidity is unmatched. For retail investors, IAU or GLDM are sufficient.

In summary: The ideal gold ETF for long-term investment holds physical allocated gold in LBMA-approved vaults, charges a sub-0.30% annual expense ratio, and maintains sufficient trading volume for clean entry and exit. GLD, IAU, and GLDM all meet these criteria, with GLDM offering the lowest fees and IAU the best all-around balance for retail long-term investors.

How Do the Top Gold ETFs Compare in 2026?

Choosing between the top gold ETFs requires comparing fees, assets under management, gold backing ratio, and accessibility. Here is a detailed side-by-side breakdown of the five most prominent gold ETFs available to U.S. investors in 2026.

Top Gold ETFs Compared: GLD, IAU, GLDM, SGOL, BAR

Data as of February 2026. AUM figures approximate. Verify current data on issuer websites before investing.

GLDM vs. IAU: Which Is Better for Long-Term Holding?

GLDM’s 0.10% expense ratio is the lowest of any major physically-backed U.S. gold ETF — a compelling advantage for long-term investors. IAU at 0.25% has far greater liquidity and a longer track record dating to 2005. For investors under $250,000 in gold exposure, GLDM’s fee savings are meaningful. Above that threshold, IAU’s superior liquidity makes it the pragmatic choice.

Is SGOL Better Than GLD for Long-Term Investors?

SGOL holds gold in Zurich and London vaults — a geographic diversification that appeals to investors concerned about single-jurisdiction custody risk. Its 0.17% expense ratio beats GLD’s 0.40% substantially. For long-term investors prioritizing vault diversification and lower fees, SGOL is a credible alternative. However, its $3.5B AUM means narrower bid-ask spreads than GLD for large trades.

Put simply: For long-term investment, GLDM offers the lowest fees at 0.10%, IAU provides the best liquidity-to-cost ratio at 0.25%, and SGOL gives geographic vault diversification at 0.17%. GLD at 0.40% is better suited for short-term institutional trading than long-term buy-and-hold. Most retail investors are best served by IAU or GLDM in 2026.

How Has Gold ETF Performance Compared to Physical Gold Over Time?

Understanding the historical return profile of gold ETFs — and how they diverge from physical gold ownership — is essential for setting realistic long-term expectations. The two are closely correlated but not identical.

Gold ETF Returns vs. Physical Gold: 10-Year Performance

GLD has returned approximately 85–90% over the past decade before expenses, closely tracking gold spot prices. Physical gold purchased and stored privately returns the spot price gain minus no ongoing management fee — but incurs one-time storage and insurance costs. Over 10+ years, low-fee ETFs like GLDM and IAU typically outperform insured private storage arrangements on a net-cost basis for retail investors.

Historical patterns indicate gold has averaged approximately 8–10% annual returns during periods of monetary expansion and geopolitical stress. Analysts suggest this trajectory may persist through 2026–2031 given continued central bank accumulation. For a deeper look at the outlook, see our gold price predictions for the next five years.

Gold ETFs During Market Downturns: A Safe Haven Record

During the 2020 COVID crash, GLD and IAU gained 24% when the S&P 500 dropped 34% peak-to-trough. During the 2008 financial crisis, gold ETFs remained essentially flat while equities fell 50%+. This counter-cyclical behavior is the primary reason long-term investors allocate 5–15% of their portfolios to gold ETFs as a hedge against equity market drawdowns and currency debasement.

Gold ETFs vs. Gold Mining Stocks: Which Wins Long-Term?

Gold mining ETFs like GDX (VanEck Gold Miners) offer leveraged exposure — when gold rises 10%, miners often rise 20–30%. But the inverse is equally true during downturns, and miners carry operational risk unrelated to gold prices. For pure, stable long-term gold exposure, physically-backed gold ETFs are the lower-risk, more predictable choice. Miners are better suited for tactical positions than buy-and-hold portfolios.

The key takeaway is: Gold ETFs like IAU and GLD have closely tracked spot gold prices over 10+ years, delivering 85–90% cumulative returns over the past decade with minimal tracking error. They outperform physical storage on a net-cost basis for most retail investors and have demonstrated consistent safe-haven behavior during equity market downturns.

How Do You Invest in a Gold ETF for the Long Term?

The mechanics of investing in a gold ETF are straightforward — any standard brokerage account supports it. The strategic questions around position sizing, tax efficiency, and account type require more thought for long-term holders.

Step-by-Step: How to Buy a Gold ETF for Long-Term Investment

1. Choose your brokerage — Fidelity, Schwab, Vanguard, and Robinhood all offer commission-free gold ETF trading. See our Robinhood gold investment guide for platform-specific details.
2. Select your ETF — For most long-term investors: GLDM (lowest cost) or IAU (best liquidity). Search the ticker in your brokerage’s search bar.
3. Decide your allocation — Financial planning guidelines typically suggest 5–15% of a diversified portfolio in gold. Adjust based on your inflation hedge needs and risk tolerance.
4. Choose your account type — Gold ETFs held in a Roth IRA or traditional IRA benefit from tax-deferred or tax-free growth. Taxable accounts subject gains to collectibles tax rates — consult a tax advisor.
5. Place a limit order — Avoid market orders on gold ETFs during the first and last 15 minutes of the trading day when spreads are widest. Use limit orders at or near the NAV.
6. Set a review schedule — Gold ETFs are long-term holds, but an annual review to rebalance your allocation is prudent — particularly after significant gold price moves of 20%+.
7. Reinvest dividends if applicable — Gold ETFs do not pay dividends. Any cash returns from portfolio rebalancing should be reinvested systematically.

Should You Hold Gold ETFs in an IRA or Taxable Account?

In the U.S., gold ETFs held in taxable accounts are taxed as collectibles — a maximum 28% long-term capital gains rate, versus the standard 20% maximum for most ETFs. Holding IAU or GLDM inside a traditional or Roth IRA eliminates this penalty and allows tax-deferred compounding. For long-term investors, tax-advantaged accounts are the optimal vehicle for gold ETF exposure.

How Much of Your Portfolio Should Be in Gold ETFs?

The World Gold Council’s research indicates that a 5–10% gold allocation historically improved risk-adjusted returns in diversified portfolios. During high-inflation or geopolitical stress periods, allocations of 10–15% have historically been optimal. For investors already exploring other gold vehicles, our analysis of which gold fund is best to invest in covers mutual funds and closed-end alternatives as well.

Here’s the bottom line: To invest in a gold ETF long-term, open a brokerage or IRA account, select IAU or GLDM, allocate 5–15% of your portfolio, and use limit orders to minimize spread costs. Hold in a tax-advantaged account where possible to avoid the 28% collectibles tax rate applicable in U.S. taxable accounts. Review allocation annually.

How Do Gold ETFs Compare to Physical Gold Ownership?

Gold ETFs and physical gold are complementary rather than competing investments. Each has a distinct role in a long-term precious metals strategy. Understanding the trade-offs helps investors decide how much weight to give each.

Physical Gold: Coins, Bars, and Allocated Accounts

Physical gold provides direct ownership with zero counterparty risk — no fund manager, no custodian, no ETF structure between you and the metal. LBMA-accredited 1 oz gold bars (99.99% purity) and American Gold Eagles remain the most popular physical formats for long-term investors. Storage, insurance, and premiums above spot (typically 2–5% for bars, 5–8% for coins) are the primary cost considerations.

For investors who prefer holding physical gold alongside or instead of ETFs, platforms like BitGolder.com allow purchasing LBMA-accredited gold and silver with Bitcoin, Ethereum, Monero, and other cryptocurrencies — no KYC required, with insured worldwide delivery and a certificate of authenticity. It’s a practical option for crypto holders seeking direct metal exposure outside the traditional financial system.

Allocated vs. Unallocated Gold Accounts

Some banks and dealers offer allocated gold accounts where specific bars are registered to your name in a vault. Unallocated accounts give you a claim on a pool of gold — similar in risk profile to an unsecured bank deposit. For long-term wealth preservation, allocated accounts and physically-backed ETFs are preferred. Unallocated accounts introduce bank counterparty risk that defeats gold’s purpose as a financial system hedge.

Gold ETFs vs. Physical Gold: Which Is Right for You?

In summary: Gold ETFs offer superior liquidity, lower entry points, and IRA compatibility, while physical gold provides direct ownership with zero counterparty risk and greater privacy. Most long-term investors benefit from holding both — ETFs in tax-advantaged accounts for portfolio efficiency, and physical bullion for off-system wealth preservation and systemic risk hedging.

What Are the Risks of Gold ETFs for Long-Term Investors?

Gold ETFs are relatively low-risk compared to equities or crypto, but they are not risk-free instruments. Understanding their specific risk profile helps long-term investors position them appropriately within a diversified portfolio.

Expense Ratio Drag Over Long Time Horizons

Even a 0.40% annual fee — GLD’s current rate — becomes meaningful over decades. An investor who chose GLD over GLDM in 2022 and held for 20 years would sacrifice approximately 6% of cumulative returns to fees alone, assuming consistent gold performance. This is not a reason to avoid gold ETFs — it’s a reason to choose the lowest-cost option that meets your liquidity needs.

Gold Does Not Pay Dividends or Interest

Gold generates no income — no dividends, no coupon payments. Long-term investors accept this in exchange for gold’s inflation-hedging and crisis-resistance properties. For income-focused portfolios, gold ETFs are a non-income generating diversifier, not a replacement for dividend stocks or bonds. This is why gold works best as a portfolio component, not a standalone investment.

Gold Price Volatility and Drawdown Risk

Gold is not immune to significant drawdowns. Between 2011 and 2015, gold fell approximately 44% from its peak — a painful multi-year decline for investors who bought at the top. Analysts suggest dollar-cost averaging into gold ETFs over 12–24 months reduces timing risk substantially. For context on current market dynamics, see our analysis of whether gold rates will decrease in coming days and our broader assessment of whether gold is a good investment in 2026.

The key takeaway is: Gold ETF risks for long-term investors include fee drag, zero income generation, and significant price drawdown potential during gold bear markets. These risks are manageable through selecting low-fee ETFs like GLDM or IAU, dollar-cost averaging, and sizing gold appropriately at 5–15% of a diversified portfolio rather than concentrating in it.

Is Physical Gold or a Gold ETF Better for Wealth Preservation in 2026?

For long-term wealth preservation — protecting purchasing power across decades — the combination of both physical gold and gold ETFs outperforms either alone. But the specific allocation between them depends on your priorities: liquidity, privacy, tax efficiency, or systemic risk protection.

The Case for Physical Gold as a Core Long-Term Holding

Physical gold held outside the banking system is the only form of gold with zero counterparty risk. No fund can be frozen, suspended, or restructured. In extreme scenarios — banking crises, currency collapses, capital controls — physical gold in hand is functional when paper claims on gold are not. For this reason, our research team recommends allocating at least a portion of precious metals exposure to direct physical ownership.

Investors seeking to acquire physical gold with cryptocurrency — maintaining privacy while converting digital assets into tangible wealth — can do so through accredited platforms. BitGolder.com offers 99.9% purity LBMA-accredited bars and coins purchased with BTC, ETH, XMR, LTC, XRP, or stablecoins, with insured delivery and no account required. For more on the best gold investment options in the USA, that guide covers the full landscape.

When Gold ETFs Are the Superior Choice

For investors within tax-advantaged retirement accounts, gold ETFs are unambiguously superior — they’re IRA-compatible, cost-efficient, and require no storage logistics. For active rebalancers who adjust gold allocation quarterly, ETF liquidity is essential. For small investors starting with $500–$5,000, GLDM or IAU provide immediate diversified gold exposure at minimal entry cost.

Here’s the bottom line: For 2026 wealth preservation, a combination of gold ETFs in tax-advantaged accounts and physical gold held privately offers the most resilient strategy. ETFs provide liquidity and cost efficiency; physical gold provides systemic risk protection. Together, they cover the scenarios where either alone would fall short.

Frequently Asked Questions: Best Gold ETF for Long-Term Investment

What is the best gold ETF to buy and hold forever?

For a true buy-and-hold strategy, GLDM (0.10% expense ratio) and IAU (0.25%) are the top choices in 2026. Both are physically backed by allocated gold in LBMA-approved vaults, have strong issuer backing (State Street and BlackRock respectively), and minimize fee drag over decades. Hold in a Roth IRA for maximum tax efficiency on a multi-decade horizon.

Is GLD or IAU better for long-term investment?

IAU is generally better for long-term retail investors due to its lower 0.25% expense ratio versus GLD’s 0.40%. GLD is larger ($60B+ AUM) and more liquid, making it preferable for institutional investors and large-position traders. For buy-and-hold retail investors with under $1M in gold ETF exposure, IAU’s fee advantage compounds meaningfully over 10–20 years.

How much should I invest in gold ETFs for long-term wealth building?

The World Gold Council and most financial advisors suggest 5–10% of a diversified investment portfolio in gold during normal market conditions, rising to 10–15% during high-inflation or elevated geopolitical risk environments. This allocation has historically improved portfolio Sharpe ratios — delivering better risk-adjusted returns without sacrificing long-term growth significantly.

Do gold ETFs pay dividends?

No — gold ETFs do not pay dividends, interest, or any income distributions. Gold is a non-yielding asset. The total return from a gold ETF comes entirely from capital appreciation in the gold price, minus the annual expense ratio. Investors seeking income should supplement gold ETF holdings with dividend-paying equities or bonds rather than expecting yield from gold.

Are gold ETFs safe in a financial crisis?

Physically-backed gold ETFs like GLD, IAU, and GLDM have demonstrated resilience during financial crises. During the 2008 global financial crisis and the 2020 COVID crash, gold ETFs held value or gained while equities fell sharply. However, in severe systemic crises involving market closures or fund suspensions, physical gold provides protection that ETFs structurally cannot match.

What is the difference between GLDM and GLD?

GLDM (SPDR Gold MiniShares) and GLD (SPDR Gold Shares) are both issued by State Street and hold physical gold in LBMA-approved vaults. GLDM charges 0.10% annually versus GLD’s 0.40% — a significant long-term cost difference. GLD has far greater daily liquidity ($1.5B+ vs. $150M). GLDM was designed specifically as a lower-cost alternative for retail and long-term investors.

Can I hold a gold ETF in my IRA?

Yes — standard gold ETFs like GLD, IAU, GLDM, and SGOL are eligible for traditional IRAs, Roth IRAs, and 401(k) accounts that offer brokerage windows. Holding gold ETFs in a Roth IRA is particularly advantageous — gains grow tax-free. Note that physical gold requires a dedicated Gold IRA with an approved custodian, which is a separate account structure.

How do gold ETFs perform during high inflation?

Historical data shows gold ETFs have performed strongly during sustained inflationary periods. During the 1970s stagflation, gold gained over 2,300%. During the 2021–2023 inflation surge, GLD and IAU gained approximately 10–15% before consolidating. Analysts suggest gold’s inflation-hedging properties are most effective over multi-year inflation cycles rather than short-term CPI spikes. It remains a core inflation hedge in 2026 portfolios.

Conclusion: Which Gold ETF Should You Choose for Long-Term Investment?

The best gold ETF for long-term investment in 2026 depends on your priorities. For lowest cost, GLDM at 0.10% is unmatched. For liquidity and institutional credibility, IAU at 0.25% is the retail standard. For geographic vault diversification, SGOL at 0.17% deserves consideration. GLD at 0.40% is best reserved for active traders and institutions who need maximum daily liquidity.

For investors who want to complement their ETF holdings with physical metal — or who prefer to convert cryptocurrency gains directly into allocated gold — BitGolder.com remains a practical, privacy-preserving option for acquiring LBMA-accredited bars and coins with crypto. No KYC, insured shipping, and a certificate of authenticity make it a credible physical counterpart to any ETF strategy.

Long-term gold investing rewards patience, cost discipline, and strategic allocation. Whether you choose ETFs, physical bullion, or a combination of both, the fundamental case for gold as a portfolio anchor — inflation hedge, crisis insurance, and currency diversifier — remains as strong in 2026 as it has been for centuries. For timing guidance on when to build your position, our gold buying timing guide offers actionable market entry frameworks.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a licensed financial advisor before making investment decisions. Past performance of gold ETFs does not guarantee future results.