EDZ vs. IAU
EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and IAU (iShares Gold Trust) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, EDZ returned -36.90%/yr vs 11.42%/yr for IAU. At a correlation of -0.21, they often move in opposite directions. EDZ charges 1.08%/yr vs 0.25%/yr for IAU.
Performance
EDZ vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, EDZ achieves a -55.99% return, which is significantly lower than IAU's -7.61% return. Over the past 10 years, EDZ has underperformed IAU with an annualized return of -36.90%, while IAU has yielded a comparatively higher 11.42% annualized return.
EDZ
- 1D
- -0.26%
- 1M
- -13.80%
- YTD
- -55.99%
- 6M
- -56.70%
- 1Y
- -70.82%
- 3Y*
- -48.07%
- 5Y*
- -24.79%
- 10Y*
- -36.90%
IAU
- 1D
- -3.03%
- 1M
- -11.58%
- YTD
- -7.61%
- 6M
- -11.09%
- 1Y
- 19.64%
- 3Y*
- 27.30%
- 5Y*
- 17.22%
- 10Y*
- 11.42%
EDZ vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EDZ Direxion Daily Emerging Markets Bear 3X Shares | -55.99% | -59.30% | -12.71% | -20.28% | 49.27% | -8.69% | -68.79% | -43.01% | 32.87% | -64.12% |
IAU iShares Gold Trust | -7.61% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between EDZ and IAU is -0.42, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.32 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.23 |
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008 | -0.21 |
Over the past year, the inverse relationship between EDZ and IAU has strengthened: their correlation has moved from -0.21 to -0.42, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
EDZ vs. IAU — Risk / Return Rank
EDZ
IAU
EDZ vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and iShares Gold Trust (IAU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| EDZ | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.77 | ||
| Sortino ratioReturn per unit of downside risk | -3.12 | ||
| Omega ratioGain probability vs. loss probability | 0.76 | 1.15 | -0.40 |
| Calmar ratioReturn relative to maximum drawdown | -0.95 | 0.75 | -1.70 |
| Martin ratioReturn relative to average drawdown | -1.67 | 2.14 | -3.81 |
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Drawdowns
EDZ vs. IAU - Drawdown Comparison
The maximum EDZ drawdown since its inception was -99.99%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for EDZ and IAU.
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Drawdown Indicators
| EDZ | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.99% | -45.14% | -54.85% |
Max Drawdown (1Y)Largest decline over 1 year | -74.99% | -26.17% | -48.82% |
Max Drawdown (3Y)Largest decline over 3 years | -90.46% | -26.17% | -64.29% |
Max Drawdown (5Y)Largest decline over 5 years | -92.91% | -26.17% | -66.74% |
Max Drawdown (10Y)Largest decline over 10 years | -99.17% | -26.17% | -73.00% |
Current DrawdownCurrent decline from peak | -99.99% | -26.17% | -73.82% |
Average DrawdownAverage peak-to-trough decline | -97.73% | -15.98% | -81.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 42.30% | 9.21% | +33.09% |
Volatility
EDZ vs. IAU - Volatility Comparison
Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 37.01% compared to iShares Gold Trust (IAU) at 8.50%. This indicates that EDZ's price experiences larger fluctuations and is considered to be riskier than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EDZ | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 37.01% | 8.50% | +28.51% |
Volatility (6M)Calculated over the trailing 6-month period | 61.17% | 24.42% | +36.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 67.97% | 27.55% | +40.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 58.92% | 18.24% | +40.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.50% | 16.01% | +45.49% |
EDZ vs. IAU - Expense Ratio Comparison
EDZ has a 1.08% expense ratio, which is higher than IAU's 0.25% expense ratio.
Dividends
EDZ vs. IAU - Dividend Comparison
EDZ's dividend yield for the trailing twelve months is around 7.60%, while IAU has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
EDZ Direxion Daily Emerging Markets Bear 3X Shares | 7.60% | 6.58% | 4.87% | 4.34% | 0.00% | 0.00% | 0.82% | 1.67% | 0.68% |
IAU iShares Gold Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
EDZ and IAU have a correlation of -0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EDZ has higher volatility (37.01%) compared to IAU (8.50%). In terms of maximum drawdown, EDZ dropped -99.99% vs IAU's -45.14%.
On 10-year performance, IAU leads with 11.42% vs -36.90% for EDZ. On fees, IAU is cheaper at 0.25% per year. On volatility, IAU has been the lower-risk option at 8.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IAU has performed better with a 11.42% return vs -36.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IAU is cheaper with a 0.25% expense ratio, compared with 1.08% for EDZ.
EDZ has the higher dividend yield at 7.60%, compared with 0.00% for IAU.
EDZ is categorized as Leveraged Equities, while IAU is Gold. EDZ tracks MSCI Emerging Markets Index (-300%), while IAU tracks LBMA Gold Price. They also come from different issuers: Direxion and iShares. Their fees differ too: 1.08% for EDZ and 0.25% for IAU.
IAU currently has the higher Sharpe Ratio (0.72 vs -1.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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