The iShares Gold Trust (IAU) is one of the most popular gold exchange-traded funds (ETFs) for investors looking to gain exposure to gold without owning physical bullion. With its low expense ratio and high liquidity, IAU is a favorite on platforms like Robinhood and other brokerages. In this article, we dive into why IAU is a compelling investment choice in 2025, its key features, and how it fits into a diversified portfolio.

What is the iShares Gold ETF (IAU)?

Launched in 2005 by BlackRock, the iShares Gold Trust (IAU) tracks the price of gold bullion, with each share representing a fractional interest in physical gold held in secure vaults. Key details include:

• Expense Ratio: 0.25% (lower than competitors like SPDR Gold Shares).
• Assets Under Management (AUM): ~$30 billion (as of 2025).
• Trading Volume: High liquidity, with millions of shares traded daily.
• Custodian: Gold is stored by JPMorgan Chase in London and other secure locations.

IAU is designed to mirror the spot price of gold, minus the fund’s expenses, making it a straightforward way to invest in gold. Learn more about IAU.

Why Choose IAU in 2025?

Gold remains a safe-haven asset, especially during economic uncertainty, inflation, or geopolitical tensions. Here’s why IAU stands out:

• Low Costs: With an expense ratio of 0.25%, IAU is cheaper than SPDR Gold Shares (GLD, 0.40%), saving investors money over time.
• Accessibility: Available on commission-free platforms like Robinhood, IAU is easy to buy and sell.
• Stability: IAU tracks physical gold, offering a hedge against stock market volatility.
• Performance: Gold prices have historically risen during inflationary periods, and IAU captures this upside with minimal tracking error.

IAU vs. Other Gold ETFs

Compared to other gold ETFs, IAU offers a balance of cost and liquidity:

• SPDR Gold Shares (GLD): Higher expense ratio (0.40%) but larger AUM (~$83 billion).
• SPDR Gold MiniShares (GLDM): Lower expense ratio (0.10%) but smaller AUM (~$13 billion).
• VanEck Vectors Gold Miners ETF (GDX): Invests in gold mining companies, not physical gold, making it riskier.

For investors prioritizing low fees and simplicity, IAU is often the preferred choice. Check IAU’s performance on Robinhood or other platforms.

How to Invest in IAU on Robinhood

Robinhood’s commission-free platform makes investing in IAU seamless:

1. Open a Robinhood account and deposit funds.
2. Search for “IAU” in the app.
3. Review IAU’s price, historical performance, and analyst ratings.
4. Place a buy order (market or limit) based on your budget.

Robinhood’s real-time data helps you monitor IAU’s price movements and make informed decisions.

Risks of Investing in IAU

While IAU is a solid investment, consider these risks:

• Gold Price Volatility: Gold prices can fluctuate based on economic conditions.
• No Dividends: Unlike stocks, IAU doesn’t pay dividends.
• Storage Fees: The 0.25% expense ratio covers storage and management costs.

Diversify your portfolio to mitigate these risks, combining IAU with stocks, bonds, or other ETFs.

Conclusion

The iShares Gold Trust (IAU) is a top choice for investors seeking low-cost, liquid exposure to gold in 2025. With its competitive expense ratio, high liquidity, and availability on platforms like Robinhood, IAU is ideal for both new and seasoned investors. Whether you’re hedging against inflation or diversifying your portfolio, IAU offers a reliable way to invest in gold.

Ready to invest? Explore IAU on Robinhood or visit iShares for more details.