ESGU vs. IAU

Last updated Jun 4, 2026

ESGU (iShares ESG Aware MSCI USA ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - ESGU is a Large Cap Blend Equities fund tracking the MSCI USA Extended ESG Focus Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 5 years, ESGU returned 12.74%/yr vs 18.32%/yr for IAU. At a 0.07 correlation, their price movements are largely independent. ESGU charges 0.15%/yr vs 0.25%/yr for IAU.

Performance

ESGU vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI USA ETF (ESGU) 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, ESGU achieves a 11.06% return, which is significantly higher than IAU's 2.98% return.

ESGU

• 1D: -0.79%
• 1M: 5.51%
• YTD: 11.06%
• 6M: 10.93%
• 1Y: 27.83%
• 3Y*: 22.00%
• 5Y*: 12.74%
• 10Y*: —

IAU

• 1D: -0.98%
• 1M: -1.62%
• YTD: 2.98%
• 6M: 5.50%
• 1Y: 32.20%
• 3Y*: 31.29%
• 5Y*: 18.32%
• 10Y*: 13.31%

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

ESGU vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGU iShares ESG Aware MSCI USA ETF	11.06%	16.90%	24.31%	25.79%	-20.27%	26.89%	22.54%	31.72%	-4.32%	21.07%
IAU iShares Gold Trust	2.98%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between ESGU and IAU is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.12
Correlation (All Time) Calculated using the full available price history since Dec 7, 2016	0.07

The correlation between ESGU and IAU shifts across timeframes, from 0.07 (all time) to 0.20 (1 year), reflecting how their relationship changes across market environments.

ESGU vs. IAU - Sectors Allocation Comparison

Sectors	ESGU	IAU
Technology	38.7%	-
Financial Services	11.5%	-
Communication Services	9.8%	-
Consumer Cyclical	9.4%	-
Healthcare	8.4%	-
Industrials	8.4%	-
Consumer Defensive	3.9%	-
Energy	3.5%	-
Utilities	2.4%	-
Real Estate	2.1%	100.0%
Basic Materials	1.6%	-

Return for Risk

ESGU vs. IAU — Risk / Return Rank

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

ESGU

ESGU Risk / Return Rank: 67
ESGU Sharpe Ratio Rank: 68
ESGU Sortino Ratio Rank: 66
ESGU Omega Ratio Rank: 67
ESGU Calmar Ratio Rank: 60
ESGU Martin Ratio Rank: 72

IAU

IAU Risk / Return Rank: 32
IAU Sharpe Ratio Rank: 33
IAU Sortino Ratio Rank: 29
IAU Omega Ratio Rank: 36
IAU Calmar Ratio Rank: 33
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.

ESGU vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI USA ETF (ESGU) 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.

	ESGU	IAU	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.23	+1.08
Sortino ratio: Return per unit of downside risk	3.12	1.62	+1.50
Omega ratio: Gain probability vs. loss probability	1.41	1.24	+0.17
Calmar ratio: Return relative to maximum drawdown	3.02	1.69	+1.33
Martin ratio: Return relative to average drawdown	13.75	4.19	+9.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESGU vs. IAU - Sharpe Ratio Comparison

The current ESGU Sharpe Ratio is 2.30, which is higher than the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of ESGU 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

	ESGU	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	1.23	+1.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	1.03	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.84	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	0.62	+0.21

Drawdowns

ESGU vs. IAU - Drawdown Comparison

The maximum ESGU drawdown since its inception was -33.87%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for ESGU and IAU.

Drawdown Indicators

	ESGU	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-33.87%	-45.14%	+11.27%
Max Drawdown (1Y) Largest decline over 1 year	-9.26%	-19.18%	+9.92%
Max Drawdown (3Y) Largest decline over 3 years	-19.32%	-19.18%	-0.14%
Max Drawdown (5Y) Largest decline over 5 years	-26.15%	-20.93%	-5.22%
Max Drawdown (10Y) Largest decline over 10 years	—	-21.82%	—
Current Drawdown Current decline from peak	-0.79%	-17.70%	+16.91%
Average Drawdown Average peak-to-trough decline	-4.89%	-15.96%	+11.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	7.71%	-5.68%

Volatility

ESGU vs. IAU - Volatility Comparison

The current volatility for iShares ESG Aware MSCI USA ETF (ESGU) is 2.92%, while iShares Gold Trust (IAU) has a volatility of 5.50%. This indicates that ESGU experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESGU	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.92%	5.50%	-2.58%
Volatility (6M) Calculated over the trailing 6-month period	9.20%	23.02%	-13.82%
Volatility (1Y) Calculated over the trailing 1-year period	12.16%	26.42%	-14.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	17.95%	-0.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.60%	15.90%	+2.70%

ESGU vs. IAU - Expense Ratio Comparison

ESGU has a 0.15% expense ratio, which is lower than IAU's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESGU vs. IAU - Dividend Comparison

ESGU's dividend yield for the trailing twelve months is around 0.92%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGU iShares ESG Aware MSCI USA ETF	0.92%	0.99%	1.18%	1.43%	1.58%	1.06%	1.27%	1.32%	1.73%	1.82%
IAU iShares Gold Trust	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 ESGU and IAU in my portfolio?

ESGU and IAU have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESGU or IAU?

IAU has higher volatility (5.50%) compared to ESGU (2.92%). In terms of maximum drawdown, ESGU dropped -33.87% vs IAU's -45.14%.

Which ETF is better, ESGU or IAU?

On 5-year performance, IAU leads with 18.32% vs 12.74% for ESGU. On fees, ESGU is cheaper at 0.15% per year. On volatility, ESGU has been the lower-risk option at 2.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGU or IAU?

Over the 5-year period, IAU has performed better with a 18.32% return vs 12.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGU or IAU?

ESGU is cheaper with a 0.15% expense ratio, compared with 0.25% for IAU.

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

ESGU has the higher dividend yield at 0.92%, compared with 0.00% for IAU.

What is the main difference between ESGU and IAU?

ESGU is categorized as Large Cap Blend Equities, while IAU is Gold. ESGU tracks MSCI USA Extended ESG Focus Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.15% for ESGU and 0.25% for IAU.

Which has better risk-adjusted returns?

ESGU currently has the higher Sharpe Ratio (2.30 vs 1.23), 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.