The War Between Gold ETFs

BlackRock has aggressively cut the annual expense ratio for the iShares Comex Gold Trust (IAU) in a bid to lure investors from the $56 billion SPDR Gold Shares (GLD).

According to the WSJ‘s Ian Salisbury, the expense ratio for IAU was cut from  0.40% to 0.25%.  The expense ratio for GLD remains at 0.40%.

Salisbury warns GLD investors to think twice before switching to IAU.  A marginal tax rate of 28% and trading costs could offset any savings coming from the lower annual expense ratio.

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