The Sprott Gold Miners ETF (NYSEMKT:SGDM) and iShares Gold Trust (NYSEMKT:IAU) offer exposure to gold with differing strategies and risk profiles. SGDM has a 0.50% expense ratio compared to IAU’s 0.25%, but IAU has a lower 1-year return at 72.60% compared to SGDM’s 137.07%. Both have varying AUM and beta values.

The iShares Gold Trust aims to track the spot price of gold, boasting $78 billion in AUM and a 21-year history, making it a liquid, low-cost option. SGDM, on the other hand, holds a concentrated portfolio of 43 gold mining companies, with top holdings like Agnico Eagle Mines Ltd. (TSX:AEM.TO) and Newmont Corp. (NYSE:NEM).

Investing in gold-related ETFs can come with increased volatility, especially during economic and geopolitical instability. The price of gold can fluctuate due to international entities buying it and a weakened U.S. dollar. Both SGDM and IAU are tied to the performance of gold, with SGDM showing better 1-year performance.

Consider the performance of iShares Gold Trust against other stocks before investing, as it may not be one of the 10 best stocks identified by the Motley Fool Stock Advisor analyst team. The team has achieved a total average return of 914%, outperforming the S&P 500 by a significant margin. Check the latest top 10 list with Stock Advisor for more insights.

Read more at Yahoo Finance: IAU and SGDM Both Soar Off Of Gold’s Record-Breaking Numbers