There are many gold based ETFs, let's take GLD and IAN for this example.
- GLD trades approximately at $160
- IAN approximately at $16
If you compare the performances of the two in the past weeks, months, or even starting 10 years ago you'll notice that they've always performed equally. It often looks like a single line in charts.
Assuming equal expenses and fees, what are the implication of buying 10 units of GLD ($1,600 total) versus buying 100 units of IAU ($1,600 total)?
If there are no differences as I think, what's the point of buying GLD since IAU has lower expenses (0.4% vs 0.25%)??
I noticed this in other Index based ETFs and Mutual Funds. Many times the only difference are expenses only and I don't understand how the more expensive security can even exist in the first place..