GARP vs. IAU

Last updated Jun 3, 2026

GARP (iShares MSCI USA Quality GARP ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 5 years, GARP returned 20.74%/yr vs 18.82%/yr for IAU. At a 0.10 correlation, their price movements are largely independent. GARP charges 0.15%/yr vs 0.25%/yr for IAU.

Performance

GARP vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) 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, GARP achieves a 22.17% return, which is significantly higher than IAU's 4.00% return.

GARP

• 1D: -0.01%
• 1M: 12.94%
• YTD: 22.17%
• 6M: 23.18%
• 1Y: 46.14%
• 3Y*: 33.92%
• 5Y*: 20.74%
• 10Y*: —

IAU

• 1D: 0.18%
• 1M: -2.65%
• YTD: 4.00%
• 6M: 6.47%
• 1Y: 32.38%
• 3Y*: 31.72%
• 5Y*: 18.82%
• 10Y*: 13.42%

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

GARP vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	22.17%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
IAU iShares Gold Trust	4.00%	63.95%	26.85%	12.84%	-0.63%	-4.00%	22.09%

Correlation

The correlation between GARP and IAU is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jan 17, 2020	0.10

GARP vs. IAU - Sectors Allocation Comparison

Sectors	GARP	IAU
Technology	56.7%	-
Communication Services	12.0%	-
Financial Services	7.5%	-
Industrials	6.9%	-
Consumer Cyclical	6.1%	-
Healthcare	5.4%	-
Energy	2.7%	-
Utilities	1.4%	-
Basic Materials	0.9%	-
Real Estate	0.4%	100.0%
Consumer Defensive	-	-

Return for Risk

GARP vs. IAU — Risk / Return Rank

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

GARP

GARP Risk / Return Rank: 72
GARP Sharpe Ratio Rank: 79
GARP Sortino Ratio Rank: 72
GARP Omega Ratio Rank: 71
GARP Calmar Ratio Rank: 68
GARP Martin Ratio Rank: 72

IAU

IAU Risk / Return Rank: 34
IAU Sharpe Ratio Rank: 34
IAU Sortino Ratio Rank: 30
IAU Omega Ratio Rank: 37
IAU Calmar Ratio Rank: 37
IAU Martin Ratio Rank: 31

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.

GARP vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) 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.

	GARP	IAU	Difference
Sharpe ratio Return per unit of total volatility	2.59	1.23	+1.36
Sortino ratio Return per unit of downside risk	3.33	1.63	+1.71
Omega ratio Gain probability vs. loss probability	1.43	1.25	+0.19
Calmar ratio Return relative to maximum drawdown	3.41	1.87	+1.55
Martin ratio Return relative to average drawdown	13.74	4.69	+9.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GARP vs. IAU - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 2.59, which is higher than the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of GARP 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

	GARP	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.59	1.23	+1.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.95	1.05	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.85	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	0.63	+0.28

Drawdowns

GARP vs. IAU - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for GARP and IAU.

Drawdown Indicators

	GARP	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-45.14%	+13.80%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-19.18%	+5.49%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-19.18%	-4.55%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-20.93%	-9.68%
Max Drawdown (10Y) Largest decline over 10 years	—	-21.82%	—
Current Drawdown Current decline from peak	-0.01%	-16.88%	+16.87%
Average Drawdown Average peak-to-trough decline	-7.37%	-15.96%	+8.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	7.63%	-4.23%

Volatility

GARP vs. IAU - Volatility Comparison

The current volatility for iShares MSCI USA Quality GARP ETF (GARP) is 4.87%, while iShares Gold Trust (IAU) has a volatility of 5.78%. This indicates that GARP 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

	GARP	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	5.78%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	13.88%	23.00%	-9.12%
Volatility (1Y) Calculated over the trailing 1-year period	17.87%	26.51%	-8.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.97%	17.96%	+4.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.90%	15.90%	+8.00%

GARP vs. IAU - Expense Ratio Comparison

GARP 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

GARP vs. IAU - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.25%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	0.25%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both GARP and IAU in my portfolio?

GARP and IAU have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GARP or IAU?

IAU has higher volatility (5.78%) compared to GARP (4.87%). In terms of maximum drawdown, GARP dropped -31.34% vs IAU's -45.14%.

Which ETF is better, GARP or IAU?

On 5-year performance, GARP leads with 20.74% vs 18.82% for IAU. On fees, GARP is cheaper at 0.15% per year. On volatility, GARP has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or IAU?

Over the 5-year period, GARP has performed better with a 20.74% return vs 18.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or IAU?

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

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

GARP has the higher dividend yield at 0.25%, compared with 0.00% for IAU.

What is the main difference between GARP and IAU?

GARP is categorized as Large Cap Growth Equities, while IAU is Gold. GARP tracks MSCI USA Quality GARP Select Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.15% for GARP and 0.25% for IAU.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (2.59 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.