In addition to worrying about getting a good trading price, investors that trade gold ETFs also pay brokerage commissions. A number of iShares ETFs can be traded for free online with Fidelity Investments, but the gold ETF is not on the list.

Finally, although the iShares ETF's low fees may be attractive for long-term holders, many existing investors in SPDR Gold Shares won't want to sell shares for tax reasons. Investment gains on gold ETFs are taxed like collectibles, meaning investors pay ordinary income tax rates up to 28%, according to Morningstar ETF analyst Scott Burns.

"Incurring that gain is going to swamp the [fee] cut," he says.

 

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