AAAU vs. GDX: Is It Better to Hold Physical Gold or Invest in Gold Miners?

Key Points Goldman Sachs Physical Gold ETF provides direct exposure to gold bullion with an expense ratio significantly lower than the equity-based alternative. VanEck Gold Miners ETF focuses on companies that extract the metal, which has resulted in higher total returns but also significantly higher volatility. Goldman Sachs Physical Gold ETF maintains a much lower beta and a smaller maximum drawdown over the last five years, reflecting the relative stability of physical gold compared to mining stocks.