GLD ETF Review: Is SPDR Gold Shares Worth Buying?
SPDR Gold Shares is the world's largest physically-backed gold ETF with over $75 billion in AUM and a 0.40% expense ratio, serving as the default institutional vehicle for portfolio debasement protection and central bank monetary policy hedging within the Energy Macro framework.
What Is GLD?
SPDR Gold Shares (GLD) is the world's largest gold-backed ETF, holding physical gold bullion in secure vaults. Managed by State Street, GLD tracks the price of gold minus fees through direct ownership of gold bars stored primarily in London. Each share represents roughly 1/10th of an ounce of gold.
Expense Ratio: 0.40% | AUM: $148.2 billion | Inception: November 2004
Current Snapshot
| Metric | Value |
| Price | $444.95 |
| YTD Return | -10.3% |
| 1-Year Return | 71.4% |
| Expense Ratio | 0.40% |
| AUM | $148.2B |
| Dividend Yield | 0% |
Why It Matters for Real Asset Investors
Gold serves as the ultimate currency debasement hedge in the Energy Macro framework—your insurance policy when governments print money faster than economies can grow. GLD provides direct exposure to this 5,000-year store of value without the hassles of physical storage, insurance, or authenticity verification.
The metal shines brightest during currency crises, fiscal dominance periods, and when real rates turn deeply negative. Central banks worldwide have been net buyers since 2010, adding over 1,000 tonnes annually as they diversify away from dollar reserves. This institutional demand creates a structural bid under gold prices that didn't exist in previous decades.
GLD struggles when real yields spike meaningfully positive—gold pays no interest, so rising inflation-adjusted Treasury yields make it less attractive. The ETF also faces headwinds during deflationary crashes when cash becomes king and everything else gets liquidated.
Top Holdings
GLD doesn't hold securities—it holds physical gold bars. The trust owns approximately 847 tonnes of gold bullion stored in HSBC's London vault, with additional holdings at other authorized custodians. Each bar is individually tracked and audited, with serial numbers published monthly.
State Street publishes daily holdings reports showing exact bar counts and weights. Unlike gold mining stocks or futures contracts, GLD gives you direct ownership of the underlying metal through a legal structure that's survived multiple market crashes.
How It Fits the Portfolio
GLD functions as portfolio insurance rather than a growth investment. Position sizing should reflect its role as a hedge against monetary debasement and systemic risk—typically 5-15% of total assets depending on your conviction around fiscal sustainability.
The sweet spot for adding GLD exposure comes during periods of negative real yields or when debt-to-GDP ratios accelerate unsustainably. It pairs naturally with other hard assets like energy infrastructure and real estate, but avoid overconcentration in commodities that all move together during risk-off periods.
Regime Signals
GLD outperforms during three distinct macro regimes: currency crises (when faith in fiat money wavers), fiscal dominance (when debt levels force central bank accommodation), and stagflationary periods (when growth slows but inflation persists).
The ETF tends to underperform during disinflationary growth periods—when productivity gains keep prices stable while economies expand. Rising real rates above 2% historically create sustained headwinds for gold, as the opportunity cost of holding a non-yielding asset becomes prohibitive. Watch the 10-year TIPS yield as your key regime indicator.
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- IAU: iShares Gold Trust
- PHYS: Sprott Physical Gold Trust
- GDX: VanEck Gold Miners ETF
Frequently Asked Questions
Is GLD a good investment for gold exposure?
GLD is the most liquid gold ETF in the world, making it the default choice for institutional and tactical gold exposure. Its massive AUM ensures tight bid-ask spreads and deep options markets. However, the 0.40% expense ratio is higher than competitors like IAU (0.25%), which matters for long-term holders. GLD is best suited for active traders and investors who need options liquidity.
What is the expense ratio of GLD?
GLD charges a 0.40% annual expense ratio, which is deducted from the trust's gold holdings over time. This means GLD's price gradually drifts below the spot price of gold by roughly 0.40% per year. For buy-and-hold investors, cheaper alternatives like IAU (0.25%) or PHYS offer better long-term cost efficiency. For active traders, GLD's superior liquidity justifies the premium.
Does GLD hold real physical gold?
Yes, GLD holds physical gold bars stored in HSBC's London vault. Each share represents approximately 1/10th of an ounce of gold. The trust publishes a daily bar list showing serial numbers and weights. However, shareholders cannot redeem shares for physical gold — only authorized participants (large institutions) can create or redeem baskets of shares for physical metal.
How does GLD perform during inflation and recessions?
Gold has historically performed well during periods of negative real interest rates, currency debasement, and financial stress. GLD rallied over 25% in 2024-2025 as central banks accumulated record gold reserves and fiscal deficits expanded globally. During recessions, gold typically outperforms equities but can decline if deflationary liquidation forces selling across all assets, as occurred briefly in March 2020.
For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.
Last updated: February 1, 2026 | Data: Yahoo Finance, State Street Global Advisors
