SPY and GLD: Are There More Affordable Alternatives to These Very Popular ETFs?
SPDR Gold Shares (GLD 1.68%) serves as a specialized commodity play on physical gold, whereas State Street SPDR S&P 500 ETF Trust (SPY 0.33%)provides a broad-based exposure to the 500 largest U.S. companies.
While GLD and SPY are both veteran ETFs issued by SPDR, they target entirely different asset classes. Investors often compare them to decide between the cash-flow-generating potential of American industry and the historical store-of-value characteristics associated with precious metals.
Snapshot (cost & size)
| Metric | SPY | GLD |
|---|---|---|
| Issuer | SPDR | SPDR |
| Expense ratio | 0.09% | 0.40% |
| 1-yr return (as of 2026-04-17) | 36.4% | 45.7% |
| Dividend yield | 1.0% | None |
| Beta | 1.00 | 0.19 |
| AUM | $714.8 Billion | $163.4 Billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors may notice that the State Street trust is significantly more affordable, charging nearly one-fourth the annual fees of the gold-backed alternative. Furthermore, the equity-based SPDR fund provides a quarterly payout, whereas the gold trust generates no income.
Performance & risk comparison
| Metric | SPY | GLD |
|---|---|---|
| Max drawdown (5 yr) | (24.5%) | (21.0%) |
| Growth of $1,000 over 5 years (total return) | $1,822 | $2,681 |
What’s inside
The SPDR Gold Shares is a physically backed commodity fund that holds gold bullion in secure vaults. Because it tracks the price of gold, its portfolio consists entirely of basic materials, with no individual corporate holdings. This trust was launched in 2004 and, as a commodity vehicle, does not provide any trailing-12-month dividend payments. It is designed to offer a lower-cost alternative to buying, storing, and insuring physical gold bars.
In contrast, the State Street SPDR S&P 500 ETF Trust provides exposure to 504 holdings across every major economic sector. Its largest positions include Nvidia Corp(NVDA 0.42%) at 7.97%, Apple Inc(AAPL 1.59%) at 6.39%, and Microsoft Corp(MSFT +1.48%) at 5.16%. The trust, which was launched in 1993, is heavily tilted toward technology at 34% and financial services at 12%. Unlike the gold trust, it paid $7.38 per share over the trailing 12 months.
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What this means for investors
The SPDR Gold Shares (GLD) and the State Street SPDR S&P 500 ETF Trust (SPY) are two of the largest and most well-known exchange-traded funds (ETFs) around. Here are some key takeaways to consider for average investors.
First, let’s discuss SPY. This ETF is simply massive. With over $714 billion in AUM, SPY is the third-largest ETF in the world. The fund tracks the S&P 500 index, making it an easy choice for those looking to simplify their investment strategy. However, there are other options for investors looking to duplicate the returns of the S&P 500 index. The Vanguard S&P 500 ETF (VOO 0.24%), for example, also tracks the benchmark index, but does so with an expense ratio of only 0.03% — lower than SPY’s 0.09% expense ratio.
As for GLD, it follows a completely different strategy than SPY. Rather than tracking a stock market index, GLD is a commodity ETF that tracks the price of gold. Therefore, it offers a compelling option for investors seeking to diversify their portfolios. Yet, like SPY, there is a more affordable option for investors. The SPDR Gold Minishares Trust of beneficial interest (GLDM 1.49%) also tracks the price of gold, but does so with an expense ratio of 0.10%, rather than GLD’s 0.40%.
In summary, both SPY and GLD are enormously popular ETFs. Yet, investors willing to dig a little deeper can find identical exposure at a cheaper cost.