IAU — iShares Gold Trust
iShares (BlackRock) · Expense Ratio: 0.25% · Commodities · 26bp below the Commodities category average of 0.51%
Key Facts
| Ticker | IAU |
| Full Name | iShares Gold Trust |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.25% |
| Category | Commodities |
| Assets Under Management | $30B |
| Inception Year | 2005 (21 years ago) |
| Number of Holdings | 1 |
| Top Holdings | Physical Gold Bullion |
What Is IAU?
IAU, managed by iShares (BlackRock), launched in 2005, is a major ETF with deep liquidity and tight bid-ask spreads in the Commodities category. Commodity ETF tracking gold, silver, or other physical commodity prices. With $30B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
IAU in a FIRE Portfolio
Physical gold provides a hedge against both inflation and market crashes — useful as a small portfolio diversifier for risk-averse FIRE investors.
Gold and commodity ETFs historically perform well during periods of high inflation and market stress. Most FIRE portfolios allocate 0-10% to such hedges — enough to provide downside protection without sacrificing long-term growth.
Cost Analysis: How IAU's 0.25% Fee Affects Your FIRE Timeline
At 0.25%, IAU is moderately priced. Annual cost on a $100K position: $250. Over 30 years, fees could consume approximately 1.5% of total returns. On a $1M FIRE portfolio, cumulative fees approach $25,000. Compare with lower-cost peers in Commodities: .
Frequently Asked Questions About IAU
What is the expense ratio for IAU?
IAU has an expense ratio of 0.25%. This is moderately priced — on a $100K portfolio, annual fees are $250. 26bp below the commodities category average of 0.51%.
Is IAU good for a FIRE portfolio?
Physical gold provides a hedge against both inflation and market crashes — useful as a small portfolio diversifier for risk-averse FIRE investors. Its 0.25% expense ratio is moderately priced for the Commodities category.
How does the 0.25% fee affect long-term returns?
At 0.25%, annual costs are $250/$100K. Over 30 years, this could reduce your final portfolio value by 1.5% or more. For a $1M FIRE portfolio, that's $15,000+ in lost compound growth.
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)
- GSG — iShares S&P GSCI Commodity-Indexed Trust (0.75% · Not Recommended for FIRE)
- SGOL — Aberdeen Standard Physical Gold Shares ETF (0.17% · Portfolio Hedge)