EEMS vs. IAU

Last updated Jun 5, 2026

EEMS (iShares MSCI Emerging Markets Small-Cap ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - EEMS is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Small Cap Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, EEMS returned 9.25%/yr vs 13.38%/yr for IAU. At a 0.20 correlation, their price movements are largely independent. EEMS charges 0.73%/yr vs 0.25%/yr for IAU.

Performance

EEMS vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and iShares Gold Trust (IAU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EEMS achieves a 15.19% return, which is significantly higher than IAU's 3.83% return. Over the past 10 years, EEMS has underperformed IAU with an annualized return of 9.25%, while IAU has yielded a comparatively higher 13.38% annualized return.

EEMS

• 1D: 0.49%
• 1M: -0.06%
• YTD: 15.19%
• 6M: 17.20%
• 1Y: 28.89%
• 3Y*: 17.04%
• 5Y*: 7.03%
• 10Y*: 9.25%

IAU

• 1D: 0.83%
• 1M: -1.65%
• YTD: 3.83%
• 6M: 6.31%
• 1Y: 32.47%
• 3Y*: 31.39%
• 5Y*: 18.52%
• 10Y*: 13.38%

*Multi-year figures are annualized to reflect compound growth (CAGR)

EEMS vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EEMS iShares MSCI Emerging Markets Small-Cap ETF	15.19%	19.78%	3.13%	23.09%	-19.12%	18.12%	19.47%	11.25%	-18.98%	34.80%
IAU iShares Gold Trust	3.83%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between EEMS and IAU is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.31
Correlation (10Y) Calculated over the trailing 10-year period	0.23
Correlation (All Time) Calculated using the full available price history since Aug 19, 2011	0.20

The correlation between EEMS and IAU shifts across timeframes, from 0.20 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.

EEMS vs. IAU - Sectors Allocation Comparison

Sectors	EEMS	IAU
Technology	22.7%	-
Industrials	18.9%	-
Financial Services	11.1%	-
Consumer Cyclical	9.6%	-
Healthcare	9.4%	-
Basic Materials	9.3%	-
Real Estate	5.9%	100.0%
Consumer Defensive	5.2%	-
Communication Services	2.9%	-
Utilities	2.7%	-
Energy	2.4%	-

Return for Risk

EEMS vs. IAU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EEMS

EEMS Risk / Return Rank: 51
EEMS Sharpe Ratio Rank: 50
EEMS Sortino Ratio Rank: 47
EEMS Omega Ratio Rank: 50
EEMS Calmar Ratio Rank: 55
EEMS Martin Ratio Rank: 55

IAU

IAU Risk / Return Rank: 34
IAU Sharpe Ratio Rank: 35
IAU Sortino Ratio Rank: 32
IAU Omega Ratio Rank: 39
IAU Calmar Ratio Rank: 35
IAU Martin Ratio Rank: 29

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EEMS vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) 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.

	EEMS	IAU	Difference
Sharpe ratio: Return per unit of total volatility	1.68	1.24	+0.44
Sortino ratio: Return per unit of downside risk	2.28	1.63	+0.65
Omega ratio: Gain probability vs. loss probability	1.31	1.25	+0.06
Calmar ratio: Return relative to maximum drawdown	2.67	1.70	+0.97
Martin ratio: Return relative to average drawdown	9.39	4.18	+5.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EEMS vs. IAU - Sharpe Ratio Comparison

The current EEMS Sharpe Ratio is 1.68, which is higher than the IAU Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of EEMS and IAU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EEMS	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.68	1.24	+0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	1.04	-0.60
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.84	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.63	-0.30

Drawdowns

EEMS vs. IAU - Drawdown Comparison

The maximum EEMS drawdown since its inception was -48.89%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for EEMS and IAU.

Drawdown Indicators

	EEMS	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-48.89%	-45.14%	-3.75%
Max Drawdown (1Y) Largest decline over 1 year	-10.87%	-19.18%	+8.31%
Max Drawdown (3Y) Largest decline over 3 years	-19.71%	-19.18%	-0.53%
Max Drawdown (5Y) Largest decline over 5 years	-27.07%	-20.93%	-6.14%
Max Drawdown (10Y) Largest decline over 10 years	-48.89%	-21.82%	-27.07%
Current Drawdown Current decline from peak	-1.93%	-17.02%	+15.09%
Average Drawdown Average peak-to-trough decline	-10.50%	-15.96%	+5.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	7.79%	-4.71%

Volatility

EEMS vs. IAU - Volatility Comparison

iShares MSCI Emerging Markets Small-Cap ETF (EEMS) has a higher volatility of 6.80% compared to iShares Gold Trust (IAU) at 5.50%. This indicates that EEMS'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.

Volatility by Period

	EEMS	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.80%	5.50%	+1.30%
Volatility (6M) Calculated over the trailing 6-month period	14.90%	23.03%	-8.13%
Volatility (1Y) Calculated over the trailing 1-year period	17.30%	26.41%	-9.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.06%	17.94%	-1.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.99%	15.90%	+2.09%

EEMS vs. IAU - Expense Ratio Comparison

EEMS has a 0.73% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

EEMS vs. IAU - Dividend Comparison

EEMS's dividend yield for the trailing twelve months is around 2.68%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEMS iShares MSCI Emerging Markets Small-Cap ETF	2.68%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EEMS and IAU in my portfolio?

EEMS and IAU have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EEMS or IAU?

EEMS has higher volatility (6.80%) compared to IAU (5.50%). In terms of maximum drawdown, EEMS dropped -48.89% vs IAU's -45.14%.

Which ETF is better, EEMS or IAU?

On 10-year performance, IAU leads with 13.38% vs 9.25% for EEMS. On fees, IAU is cheaper at 0.25% per year. On volatility, IAU has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEMS or IAU?

Over the 10-year period, IAU has performed better with a 13.38% return vs 9.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEMS or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.73% for EEMS.

Which ETF pays a higher dividend yield, EEMS or IAU?

EEMS has the higher dividend yield at 2.68%, compared with 0.00% for IAU.

What is the main difference between EEMS and IAU?

EEMS is categorized as Emerging Markets Diversified, while IAU is Gold. EEMS tracks MSCI Emerging Markets Small Cap Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.73% for EEMS and 0.25% for IAU.

Which has better risk-adjusted returns?

EEMS currently has the higher Sharpe Ratio (1.68 vs 1.24), 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.