Gold Investors Face Choice Between Pure Bullion ETF and Miners' Equity ETF

The decision matters because one fund holds physical bars with lower fees while the other offers leveraged returns tied to company performance and higher costs.

Overview

SPDR Gold Shares (GLD) holds physical gold bars in secure vaults and charges a 0.40% expense ratio to cover storage and insurance, making it a direct proxy for bullion prices.
VanEck Gold Miners ETF (GDX) holds about 69 mining stocks, including Newmont, Agnico Eagle and Barrick, charges a 0.51% fee and exposes investors to company-level risks such as production costs and exploration results.
Gold has risen strongly over the past year, trading near $4,017 an ounce and up more than 20% over 52 weeks, which has boosted demand for both bullion and miner-based ETFs.
In the U.S., gains from physical-metal ETFs can be taxed as collectibles at higher rates than stock gains unless held inside tax-advantaged accounts like IRAs.
Investors should pick GLD for straightforward inflation or safe-haven exposure and choose GDX if they want potential upside from miners’ operational leverage, but they must accept greater share-price volatility and firm-specific risk.