Micro Gold ETF Rides Record-Breaking Precious Metals Wave

The remarkable 2025 gold rally has propelled the iShares Gold Trust Micro (IAUM) to exceptional returns, with the exchange-traded fund delivering gains exceeding 53% year-to-date. This performance positions IAUM among the top contenders in the precious metals sector, but what fundamental drivers are fueling this surge, and how does this newer fund distinguish itself from established competitors?

Gold's impressive run throughout 2025 has created ideal conditions for gold-backed ETFs. By the close of October 2025, IAUM had achieved a net asset value total return of 53.56%. The fund's momentum remained strong across shorter timeframes, posting a 21.58% advance over the preceding three months and a 4.86% gain in October alone. As of November 3, 2025, the fund's NAV reached $40.13, reflecting a gold price of $4,025.25 per ounce.

The broader market reached a significant milestone on October 20, 2025, when the LBMA Gold Price PM hit an unprecedented peak of $4,294.35. Investor enthusiasm is evident in trading activity, with IAUM recording average three-month trading volume of 3.6 million shares and attracting net inflows totaling $2.1 billion, demonstrating substantial market acceptance.

Competitive Landscape: Finding Space Among Giants

In the crowded gold ETF marketplace, IAUM competes directly with two established heavyweights:

Should investors sell immediately? Or is it worth buying iShares® Gold Trust Micro?

• SPDR Gold Shares (GLD): The category leader with the largest asset base
• iShares Gold Trust (IAU): A well-established competitor from the same fund family
• iShares Gold Trust Micro (IAUM): A cost-efficient option designed for smaller investments

While all three funds track physical gold prices, they differ significantly in scale and expense structure. IAUM's competitive advantage lies in its lower cost approach while maintaining strong performance alignment with the underlying commodity.

Market Context: Why Gold Continues to Shine

Multiple economic factors are contributing to gold's sustained appeal. Persistent inflation concerns, ongoing geopolitical instability, and substantial central bank purchasing activity have collectively reinforced gold's traditional role as a safe-haven asset during market uncertainty.

With total assets of $5.36 billion and trading at a minimal -0.26% discount to NAV, IAUM demonstrates operational efficiency. The fund's structure eliminates counterparty risk by physically storing gold bullion in London vaults, providing a crucial distinction from synthetic gold products.

The outstanding performance raises inevitable questions about sustainability. After delivering returns surpassing 50% within a single year, market participants are watching closely to determine whether gold's upward trajectory will continue or if a corrective phase lies ahead.