Why is IAU significantly trailing the gold spot price
Moderator: Global Moderator
Why is IAU significantly trailing the gold spot price
IAU price is 15.61 and the gold spot is 1624. Are they having a hard time keep up with the volatility of gold at the moment? I hope this ETF stays solid because my 401k did not really have any for physical gold ownership.
Re: Why is IAU significantly trailing the gold spot price
Gold ETF share price typically erodes slowly over time relative to gold spot price to pay fund expenses. It’s normal.
Re: Why is IAU significantly trailing the gold spot price
Thanks! So does it seem accurate to say that my expenses for holding IAU are actually the Expense Ratio plus the decay from spot price? The ER is 0.25% and the decay is about 5.5%.
Re: Why is IAU significantly trailing the gold spot price
The decay is the ER. The current 5.5% difference between IAU and gold spot price is the cumulative effect of years of that ER-driven decay.
Re: Why is IAU significantly trailing the gold spot price
Thanks. makes sense