Gold vs US equity

GLD vs VTI after taxes

Compare a physical gold fund against a total US market fund, including gold's distinct tax treatment.

GLD is a trust that holds physical gold, so it pays no dividends and its return comes entirely from the gold price. VTI holds the total US market, paying dividends and delivering equity returns.

For tax purposes, long-term gains on a physical-gold fund are treated as collectibles and can be taxed at up to 28%, above the normal long-term capital gains rate on stocks. Run the backtest to compare both with taxes in view.

Historical results

$10,000 invested, 2005-01-03 to 2025-12-31

HoldingPre-tax valuePre-tax CAGRMax drawdownAfter-tax valueAfter-tax CAGR

Gold (GLD)

GLD

$92,12211.16%-45.56%$92,12211.16%

US total market (VTI)

VTI

$83,62210.65%-55.45%$76,62310.19%

Historical results for a $10,000 lump sum with dividends reinvested and monthly rebalancing, as of 2025-12-31. Past performance does not guarantee future results. Not investment advice.

After-tax assumptions: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.

Run it live with your own dates and tax profile

What you'll see when you run it

  • Compare after-tax paths, since gold's gain rate differs from equities.
  • Gold pays no dividends, so there is no yearly distribution tax on GLD.
  • Use gold as a diversifier view, and change the window to test correlation.

What this comparison covers

  • Gold price return with no dividends versus equity total return.
  • The collectibles tax rate on long-term gold gains, up to 28%.
  • Normal qualified-dividend and capital-gains treatment for equities.

FAQ

Why is gold taxed differently from stocks?

A fund that holds physical gold is treated as a collectible for tax purposes. Long-term gains on collectibles can be taxed at up to 28%, higher than the normal long-term capital gains rate that applies to stock funds.

Does GLD pay dividends?

No. GLD holds physical gold, which produces no income, so its entire return comes from the change in the gold price. There is no yearly dividend distribution to tax in a taxable account.

Run this comparison with your own dates, account type, and tax profile.

Open the prefilled backtest

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