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VanEck Merk Gold ETF
VanEck Merk Gold ETF is a physically backed gold ETF launched in 2014, offering allocated gold exposure via London vaults with a 0.35% expense ratio.
VanEck Merk Gold ETF
VanEck, the New York-based asset manager, launched the VanEck Merk Gold ETF in 2014 under its broader ETF lineup. The ETF was originally co-managed with Merk Investments, a firm known for its currency-focused strategies; Van Eck later absorbed full management of the fund. VanEck itself was founded in 1955 by John van Eck and is now led by his son, Jan van Eck, as CEO. The ETF directly holds allocated gold bars stored in London vaults, with the gold priced daily based on the LBMA Gold Price. It charges an expense ratio of 0.35% and has historically tracked the spot price of gold closely. VanEck also manages other commodity ETFs, including the VanEck Gold Miners ETF, which invests in gold mining equities. The fund operates as a basic, physically backed gold ETF with no leverage or futures overlay. Its primary competitor is the SPDR Gold Shares (GLD), though the VanEck Merk Gold ETF differentiates on price (lower expense ratio than GLD) and its focus on allocated gold. As of 2025, the fund had roughly $1.5 billion in assets under management (per the firm, 2025). VanEck Merk Gold ETF uses a single-gold-bar allocation model rather than pooled gold; each share represents a fractional interest in specific bars. This structural choice creates a transparency advantage — investors can verify their gold holdings down to individual bar numbers.
General information
Firm type
Asset Manager
Year founded
2014
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Jan van Eck
CEO
John Andrus
Director of ETF Investments
Sector focus
Frequently asked questions
Does the VanEck Merk Gold ETF hold physical gold or gold futures?
The ETF holds physical, allocated gold bars stored in London vaults. It does not use futures, options, or derivative contracts. Each share represents a fractional interest in specific gold bars, and the fund rebalances only through in-kind creation/redemption.
How does the VanEck Merk Gold ETF compare to SPDR Gold Shares (GLD)?
The VanEck Merk Gold ETF charges a lower expense ratio (0.35%) compared to GLD's 0.40%. Both hold physical gold, but the VanEck product uses an allocated structure where each share maps to specific bars, while GLD uses a pooled structure where gold is commingled. The VanEck fund is smaller, with roughly $1.5 billion in AUM versus GLD's ~$70 billion.
Who manages the VanEck Merk Gold ETF within VanEck?
The ETF is managed under VanEck's broader ETF platform. John Andrus serves as Director of ETF Investments at VanEck (per VanEck, 2024). The firm originally co-managed the fund with Merk Investments, but VanEck later took full management.
What is the creation/redemption process for the VanEck Merk Gold ETF?
Authorized participants (APs) can create or redeem shares in large blocks called creation units (typically 50,000 shares). For creations, APs deliver cash to the fund, which the custodian uses to purchase gold bars from London bullion dealers. Redemptions work in reverse, with APs receiving cash from gold sales by the fund.
Is the VanEck Merk Gold ETF tax-efficient for US investors?
Like other physically backed gold ETFs, it is structured as a grantor trust, which means it avoids the pass-through taxation of many commodity funds. However, gains on the sale of ETF shares are typically taxed as collectibles at a maximum 28% rate, which is higher than long-term capital gains rates on equities.
What is the minimum investment for the VanEck Merk Gold ETF?
There is no minimum investment for purchasing shares on the secondary market, aside from the cost of one share (approximately $20–30 as of early 2025). For authorized participants, the minimum creation size is one creation unit, which is typically 50,000 shares.
How does the gold vaulting work for the VanEck Merk Gold ETF?
Gold bars are held in London vaults operated by ICBC Standard Bank or other LBMA-approved depositories. Each bar is allocated — meaning specific bar numbers are assigned to the ETF. This structure provides direct ownership rights to shareholders, similar to a gold storage product, but within an ETF wrapper.
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