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Gold ETFs: AAAU Offers Lower Fees, While GDX Provides Dividend Income
A comparison of two gold ETFs: AAAU provides direct exposure to gold with low expense ratio, while GDX invests in gold mining companies and offers dividend income.
June 4, 2026
2 min read
Source: Motley Fool
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Gold remains a safe-haven asset during economic uncertainty, but choosing the right investment vehicle depends on investor goals. According to a report from Motley Fool, two leading gold ETFs stand out: AAAU and GDX, each with a distinct approach.
Comparison of AAAU and GDX
AAAU (Goldman Sachs Physical Gold ETF)
- Objective: Direct exposure to the physical gold price.
- Fees: Low expense ratio of 0.18%.
- Returns: No dividend; tracks gold price.
- Best for: Investors seeking a pure hedge against inflation or currency volatility.
GDX (VanEck Gold Miners ETF)
- Objective: Invest in gold mining companies.
- Fees: Expense ratio of 0.51%.
- Returns: Pays quarterly dividends, yielding approximately 1.5%.
- Best for: Investors wanting periodic income with exposure to the mining sector.
What This Means for Investors
The choice depends on priorities: for pure gold exposure at low cost, AAAU is optimal. For dividend income and potential capital growth from miners, GDX may be more attractive. Assess risk tolerance and time horizon before deciding.
Frequently Asked Questions
AAAU invests directly in physical gold with low fees and pays no dividends, while GDX invests in gold mining companies and pays quarterly dividends.
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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.