IAU vs. EMB
Compare and contrast key facts about iShares Gold Trust (IAU) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB).
IAU and EMB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IAU is a passively managed fund by iShares that tracks the performance of the Gold Bullion. It was launched on Jan 28, 2005. EMB is a passively managed fund by iShares that tracks the performance of the JPMorgan EMBI Global Core Index. It was launched on Dec 17, 2007. Both IAU and EMB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IAU or EMB.
Key characteristics
| IAU | EMB | |
|---|---|---|
| YTD Return | 11.50% | 1.15% |
| 1Y Return | 11.99% | 9.36% |
| 3Y Return (Ann) | 8.76% | -2.75% |
| 5Y Return (Ann) | 12.32% | 0.18% |
| 10Y Return (Ann) | 5.61% | 2.29% |
| Sharpe Ratio | 1.04 | 0.97 |
| Daily Std Dev | 12.28% | 9.04% |
| Max Drawdown | -45.14% | -34.70% |
| Current Drawdown | -3.67% | -11.40% |
Correlation
The correlation between IAU and EMB is 0.21, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
IAU vs. EMB - Performance Comparison
In the year-to-date period, IAU achieves a 11.50% return, which is significantly higher than EMB's 1.15% return. Over the past 10 years, IAU has outperformed EMB with an annualized return of 5.61%, while EMB has yielded a comparatively lower 2.29% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IAU vs. EMB - Expense Ratio Comparison
IAU has a 0.25% expense ratio, which is lower than EMB's 0.39% expense ratio.
Risk-Adjusted Performance
IAU vs. EMB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Gold Trust (IAU) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB). 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.
Dividends
IAU vs. EMB - Dividend Comparison
IAU has not paid dividends to shareholders, while EMB's dividend yield for the trailing twelve months is around 4.85%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 4.85% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% | 4.56% | 4.75% |
Drawdowns
IAU vs. EMB - Drawdown Comparison
The maximum IAU drawdown since its inception was -45.14%, which is greater than EMB's maximum drawdown of -34.70%. Use the drawdown chart below to compare losses from any high point for IAU and EMB. For additional features, visit the drawdowns tool.
Volatility
IAU vs. EMB - Volatility Comparison
iShares Gold Trust (IAU) has a higher volatility of 5.17% compared to iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) at 3.11%. This indicates that IAU's price experiences larger fluctuations and is considered to be riskier than EMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.