Updated Reviewed quarterly
GLD ETF: SPDR Gold Shares
TER0.40%·Yield (TTM)0.0%·DistributionNone·NZ taxFIF (US-domiciled, > NZ$50K cost-basis)
The world's largest physically-backed gold ETF. Own gold without the hassle of storage, insurance, or security concerns.
GLD Key Stats (2026)
What is GLD ETF?
SPDR Gold Shares (GLD) is an exchange-traded fund that holds physical gold bullion in secure vaults. Each share represents approximately 1/10th of an ounce of gold.
Launched in 2004, GLD was the first US-listed gold ETF and remains the largest. The gold is stored in HSBC's London vault and is regularly audited.
Why Investors Hold Gold
- • Inflation hedge: Gold often rises when currencies lose purchasing power
- • Portfolio diversification: Low correlation with stocks and bonds
- • Safe haven: Tends to hold value during market crashes
- • Currency hedge: Protects against NZD weakness
GLD vs Physical Gold vs GLDM
| Feature | GLD | GLDM | Physical Gold |
|---|---|---|---|
| Annual Cost | 0.40% | 0.10% | Storage + Insurance |
| Liquidity | Excellent | Good | Poor |
| Minimum Investment | ~US$240/share | ~US$50/share | 1oz+ (~US$2,600) |
| Counterparty Risk | Custodian | Custodian | None |
| Can Hold in Hands | No | No | Yes |
For most NZ investors: GLDM (the mini version) offers the same gold exposure as GLD but with lower fees (0.10% vs 0.40%) and a lower share price, making it more accessible.
How to Buy GLD from New Zealand
Choose Your Platform
GLD and GLDM are available on Hatch, Stake, Sharesies, and Interactive Brokers. All offer access to US-listed ETFs.
Decide: GLD or GLDM?
GLDM has lower fees (0.10% vs 0.40%) and a lower share price. For most investors, GLDM is the better choice unless you need GLD's superior liquidity for large trades.
Fund & Buy
Deposit NZD, convert to USD, and search for "GLD" or "GLDM". Current prices: GLD ~US$240, GLDM ~US$50.
How Much Gold Should You Hold?
Financial advisors typically suggest 5-10% of a portfolio in gold for diversification. Gold doesn't produce income, so it's generally not a core holding but rather a hedge.
5%
Conservative allocation
10%
Moderate allocation
15%+
Aggressive/worried about inflation
NZ Tax Implications for Gold ETFs
Important: GLD is Taxed Differently
Gold ETFs like GLD don't pay dividends, but they're still subject to FIF rules if your total foreign investments exceed $50,000 NZD.
- Under $50k FIF threshold: No tax until you sell (capital gains may apply depending on your situation)
- Over $50k FIF threshold: FDR method taxes 5% of opening value annually, even without selling
Consult a tax advisor for your specific situation, especially regarding the "Fair Dividend Rate" vs "Comparative Value" methods for FIF.
GLD: Pros & Cons
Pros
- Easy way to own gold without storage hassles
- Highly liquid — buy/sell instantly
- Backed by physical gold in vaults
- Portfolio diversification and inflation hedge
Cons
- ✕ No dividends or income
- ✕ 0.40% expense ratio (GLDM is cheaper at 0.10%)
- ✕ Counterparty risk (custodian holds the gold)
- ✕ Can underperform stocks over long periods
Add Gold to Your Portfolio
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FAQ
Common questions about GLD
What is the GLD ETF?⌄
GLD is the SPDR Gold Shares ETF — backed by physical gold bullion held in vaults. Each share represents approximately 1/10th of an ounce of gold. ~US$60B AUM, 0.40% TER. Pays no dividends — total return comes entirely from gold-price movement.
How does GLD differ from owning physical gold?⌄
GLD shares trade like stocks, settle in 2 days, and have no storage / insurance overhead. Physical bullion has no counterparty risk and no fund expenses but requires secure storage. GLD's 0.40% TER compounds over decades; physical bullion does not. The two also differ in tax treatment for NZ residents.
Can NZ residents buy GLD?⌄
Yes — via Hatch, Stake, Sharesies (US market), and Interactive Brokers. As a US-domiciled fund, GLD is subject to NZ FIF rules above NZ$50,000 cost base. Because GLD pays no dividends, FIF deemed income (typically 5% of opening market value under FDR) drives the entire NZ tax bill on a static holding.
Is GLD a substitute for fixed income or equities?⌄
Gold has historically had low correlation with both equities and fixed income, which is why some portfolios include a small gold allocation as a diversifier. It is not a yield-bearing asset and historically can underperform equities and bonds for long stretches. Past performance is not indicative of future results; portfolio-fit decisions are individual.