Goldman Sachs’ Physical Gold ETF Offers Advantages

With the Supreme Court overturning the current administration’s tariffs and the subsequent hasty implementation of a different set of tariffs, uncertainty has boosted the appeal of gold. This week, significant assets poured into physical gold ETFs.

The $3 billion Goldman Sachs Physical Gold ETF (AAAU) has a number of advantages that could appeal to investors. The most obvious is the fund’s expense ratio of 0.18%, at the lower end of the fees charged by competitors. When gold goes up, investors keep more of their gains than if they were in a pricier fund.

Get a Grip on Gold

AAAU also has a smaller handle than many competing physical gold ETFs. It buys exposure to 1/100 of an ounce of gold. Some other funds offer per-share exposure to 1/10 of an ounce of gold. Those shares providing greater per-share exposure are proportionally more expensive.

For investors who are deploying less money or new to investing, the lower barrier to entry can have significant appeal, as can the greater precision that can be achieved when rebalancing a portfolio. Near the end of February, AAAU had a price of roughly $51 per share, while shares of other competing funds cost significantly more.

See More: Gold ETF AAAU Offers Exposure to Record Highs for Key Metal

Gold is off its highs after a historic runup in 2025 that lasted into January 2026, before a sharp dip in February. However, as uncertainty around the global economy has increased in recent days, it has seen investors make an about-face.

Investors seem to be very interested in the “haven” aspect of gold investing. In late January, Goldman raised its gold price forecast by $500 to $5,400/toz for the end of 2026 based on a range of expectations, including for continued buying by central banks. AAAU could be a useful tool for investors looking for lower-cost and more precise exposure to that potential upside.

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