FNDX vs. IAU

Last updated Jun 9, 2026

FNDX (Schwab Fundamental U.S. Large Company Index ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - FNDX is a Large Cap Value Equities fund tracking the RAFI Fundamental High Liquidity US Large Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, FNDX returned 14.16%/yr vs 12.71%/yr for IAU. At a 0.02 correlation, their price movements are largely independent. Both charge a 0.25% expense ratio.

Performance

FNDX vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Fundamental U.S. Large Company Index ETF (FNDX) 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, FNDX achieves a 13.72% return, which is significantly higher than IAU's 0.26% return. Over the past 10 years, FNDX has outperformed IAU with an annualized return of 14.16%, while IAU has yielded a comparatively lower 12.71% annualized return.

FNDX

• 1D: 0.26%
• 1M: 1.45%
• YTD: 13.72%
• 6M: 14.45%
• 1Y: 30.74%
• 3Y*: 20.18%
• 5Y*: 12.71%
• 10Y*: 14.16%

IAU

• 1D: 0.20%
• 1M: -8.43%
• YTD: 0.26%
• 6M: 3.08%
• 1Y: 30.27%
• 3Y*: 29.88%
• 5Y*: 17.71%
• 10Y*: 12.71%

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

FNDX vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNDX Schwab Fundamental U.S. Large Company Index ETF	13.72%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	28.65%	-7.30%	17.12%
IAU iShares Gold Trust	0.26%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between FNDX and IAU is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.02

The correlation between FNDX and IAU shifts across timeframes, from 0.02 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.

FNDX vs. IAU - Sectors Allocation Comparison

Sectors	FNDX	IAU
Technology	19.1%	-
Financial Services	14.1%	-
Healthcare	12.0%	-
Energy	10.3%	-
Communication Services	10.1%	-
Industrials	9.3%	-
Consumer Cyclical	9.2%	-
Consumer Defensive	7.4%	-
Basic Materials	3.7%	-
Utilities	3.2%	-
Real Estate	1.8%	100.0%

Return for Risk

FNDX vs. IAU — Risk / Return Rank

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

FNDX

FNDX Risk / Return Rank: 91
FNDX Sharpe Ratio Rank: 92
FNDX Sortino Ratio Rank: 92
FNDX Omega Ratio Rank: 91
FNDX Calmar Ratio Rank: 90
FNDX Martin Ratio Rank: 91

IAU

IAU Risk / Return Rank: 33
IAU Sharpe Ratio Rank: 35
IAU Sortino Ratio Rank: 31
IAU Omega Ratio Rank: 38
IAU Calmar Ratio Rank: 34
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.

FNDX vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Fundamental U.S. Large Company Index ETF (FNDX) 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.

	FNDX	IAU	Difference
Sharpe ratio: Return per unit of total volatility	3.00	1.14	+1.86
Sortino ratio: Return per unit of downside risk	4.15	1.52	+2.63
Omega ratio: Gain probability vs. loss probability	1.55	1.23	+0.32
Calmar ratio: Return relative to maximum drawdown	5.09	1.52	+3.57
Martin ratio: Return relative to average drawdown	19.86	3.80	+16.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FNDX vs. IAU - Sharpe Ratio Comparison

The current FNDX Sharpe Ratio is 3.00, which is higher than the IAU Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of FNDX 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

	FNDX	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.00	1.14	+1.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.99	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.80	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	0.61	+0.17

Drawdowns

FNDX vs. IAU - Drawdown Comparison

The maximum FNDX drawdown since its inception was -37.72%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for FNDX and IAU.

Drawdown Indicators

	FNDX	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-37.72%	-45.14%	+7.42%
Max Drawdown (1Y) Largest decline over 1 year	-6.06%	-20.04%	+13.98%
Max Drawdown (3Y) Largest decline over 3 years	-16.30%	-20.04%	+3.74%
Max Drawdown (5Y) Largest decline over 5 years	-19.06%	-20.93%	+1.87%
Max Drawdown (10Y) Largest decline over 10 years	-37.72%	-21.82%	-15.90%
Current Drawdown Current decline from peak	-1.41%	-19.88%	+18.47%
Average Drawdown Average peak-to-trough decline	-3.55%	-15.97%	+12.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.55%	7.99%	-6.44%

Volatility

FNDX vs. IAU - Volatility Comparison

The current volatility for Schwab Fundamental U.S. Large Company Index ETF (FNDX) is 2.62%, while iShares Gold Trust (IAU) has a volatility of 5.64%. This indicates that FNDX 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

	FNDX	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.62%	5.64%	-3.02%
Volatility (6M) Calculated over the trailing 6-month period	7.46%	23.33%	-15.87%
Volatility (1Y) Calculated over the trailing 1-year period	10.32%	26.68%	-16.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.20%	18.02%	-2.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.51%	15.94%	+1.57%

FNDX vs. IAU - Expense Ratio Comparison

Both FNDX and IAU have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

FNDX vs. IAU - Dividend Comparison

FNDX's dividend yield for the trailing twelve months is around 1.46%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.46%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%
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 FNDX and IAU in my portfolio?

FNDX and IAU have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNDX or IAU?

IAU has higher volatility (5.64%) compared to FNDX (2.62%). In terms of maximum drawdown, FNDX dropped -37.72% vs IAU's -45.14%.

Which ETF is better, FNDX or IAU?

On 10-year performance, FNDX leads with 14.16% vs 12.71% for IAU. Both ETFs have the same 0.25% expense ratio. On volatility, FNDX has been the lower-risk option at 2.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FNDX or IAU?

Over the 10-year period, FNDX has performed better with a 14.16% return vs 12.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FNDX or IAU?

FNDX and IAU have the same expense ratio: 0.25% per year.

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

FNDX has the higher dividend yield at 1.46%, compared with 0.00% for IAU.

What is the main difference between FNDX and IAU?

FNDX is categorized as Large Cap Value Equities, while IAU is Gold. FNDX tracks RAFI Fundamental High Liquidity US Large Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Charles Schwab and iShares.

Which has better risk-adjusted returns?

FNDX currently has the higher Sharpe Ratio (3.00 vs 1.14), 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.