GSG — iShares S&P GSCI Commodity-Indexed Trust
iShares (BlackRock) · Expense Ratio: 0.75% · Commodities · 24bp above the Commodities category average of 0.51%
Key Facts
| Ticker | GSG |
| Full Name | iShares S&P GSCI Commodity-Indexed Trust |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.75% |
| Category | Commodities |
| Assets Under Management | $1.5B |
| Inception Year | 2006 (20 years ago) |
| Number of Holdings | 24 |
| Dividend Yield | ~2.5% (high) |
| Top Holdings | Futures Contracts |
What Is GSG?
GSG, managed by iShares (BlackRock), launched in 2006, is a smaller fund — check bid-ask spreads before making large trades in the Commodities category. Commodity ETF tracking gold, silver, or other physical commodity prices. With $1.5B in assets under management, investors should verify current bid-ask spreads, especially for large orders.
GSG in a FIRE Portfolio
At 0.75% expense ratio, the long-term cost drag significantly reduces compound returns. FIRE investors should seek lower-cost alternatives in the same category.
At 0.75%, the cost drag on this fund compounds significantly over a FIRE timeline. Consider these lower-cost alternatives in the same category: . Over a 30-year retirement, saving even 0.1% in fees can mean tens of thousands more in your portfolio.
Cost Analysis: How GSG's 0.75% Fee Affects Your FIRE Timeline
At 0.75%, GSG is expensive for a FIRE portfolio. A $100K investment costs $750/year in fees. Over 30 years on a $1M portfolio, cumulative fees could exceed $112,500 — enough to fund several years of retirement. For FIRE investors, minimizing costs is critical because every dollar in fees is a dollar that stops compounding.
Dividend Income Potential
With a high dividend yield of approximately 2.5%, here's what GSG could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $2,500/year | $208/month |
| $250,000 | $6,250/year | $521/month |
| $500,000 | $12,500/year | $1,042/month |
| $1,000,000 | $25,000/year | $2,083/month |
Frequently Asked Questions About GSG
What is the expense ratio for GSG?
GSG has an expense ratio of 0.75%. This is expensive — on a $100K portfolio, annual fees are $750. 24bp above the commodities category average of 0.51%.
Is GSG good for a FIRE portfolio?
At 0.75% expense ratio, the long-term cost drag significantly reduces compound returns. FIRE investors should seek lower-cost alternatives in the same category. Its 0.75% expense ratio is expensive for the Commodities category.
How does the 0.75% fee affect long-term returns?
At 0.75%, annual fees of $750/$100K create a significant drag. Over 30 years on a $1M portfolio, cumulative fees could exceed $112,500. Lower-cost alternatives in the Commodities category can dramatically improve your FIRE outcomes.
Is GSG liquid enough for my portfolio?
GSG manages $1.5B in assets — a smaller fund — check bid-ask spreads before making large trades. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Commodities
- GLD — SPDR Gold Trust (0.4% · Portfolio Hedge)
- SLV — iShares Silver Trust (0.5% · Not Recommended for FIRE)
- PDBC — Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (0.59% · Not Recommended for FIRE)
- DBC — Invesco DB Commodity Index Tracking Fund (0.89% · Not Recommended for FIRE)
- IAU — iShares Gold Trust (0.25% · Portfolio Hedge)
- SGOL — Aberdeen Standard Physical Gold Shares ETF (0.17% · Portfolio Hedge)