IAU vs. GLDY

Last updated Jun 4, 2026

IAU (iShares Gold Trust) and GLDY (Defiance Gold Enhanced Options Income ETF) are both exchange-traded funds - IAU is a Gold fund tracking the LBMA Gold Price, while GLDY is a Derivative Income fund actively managed by Defiance. IAU is passively managed, while GLDY is actively managed. Over the past year, IAU returned 32.20% vs 13.84% for GLDY. Their correlation of 0.89 suggests significant overlap in exposure. IAU charges 0.25%/yr vs 0.99%/yr for GLDY.

Performance

IAU vs. GLDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Gold Trust (IAU) and Defiance Gold Enhanced Options Income ETF (GLDY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAU achieves a 2.98% return, which is significantly higher than GLDY's -2.30% return.

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%

GLDY

• 1D: -0.58%
• 1M: -1.38%
• YTD: -2.30%
• 6M: -0.58%
• 1Y: 13.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IAU vs. GLDY - Yearly Performance Comparison

	2026 (YTD)	2025
IAU iShares Gold Trust	2.98%	37.69%
GLDY Defiance Gold Enhanced Options Income ETF	-2.30%	15.40%

Correlation

The correlation between IAU and GLDY is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	0.89

The correlation between IAU and GLDY has been stable across timeframes, ranging from 0.89 to 0.89 - a consistent structural relationship.

Return for Risk

IAU vs. GLDY — Risk / Return Rank

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

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

GLDY

GLDY Risk / Return Rank: 21
GLDY Sharpe Ratio Rank: 20
GLDY Sortino Ratio Rank: 18
GLDY Omega Ratio Rank: 23
GLDY Calmar Ratio Rank: 23
GLDY Martin Ratio Rank: 21

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.

IAU vs. GLDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Gold Trust (IAU) and Defiance Gold Enhanced Options Income ETF (GLDY). 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.

	IAU	GLDY	Difference
Sharpe ratio Return per unit of total volatility	1.23	0.70	+0.53
Sortino ratio Return per unit of downside risk	1.62	0.92	+0.70
Omega ratio Gain probability vs. loss probability	1.24	1.16	+0.09
Calmar ratio Return relative to maximum drawdown	1.69	1.03	+0.65
Martin ratio Return relative to average drawdown	4.19	2.47	+1.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IAU vs. GLDY - Sharpe Ratio Comparison

The current IAU Sharpe Ratio is 1.23, which is higher than the GLDY Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of IAU and GLDY, 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

	IAU	GLDY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	0.70	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.03	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.56	+0.07

Drawdowns

IAU vs. GLDY - Drawdown Comparison

The maximum IAU drawdown since its inception was -45.14%, which is greater than GLDY's maximum drawdown of -13.43%. Use the drawdown chart below to compare losses from any high point for IAU and GLDY.

Drawdown Indicators

	IAU	GLDY	Difference
Max Drawdown Largest peak-to-trough decline	-45.14%	-13.43%	-31.71%
Max Drawdown (1Y) Largest decline over 1 year	-19.18%	-13.43%	-5.75%
Max Drawdown (3Y) Largest decline over 3 years	-19.18%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-20.93%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-21.82%	—	—
Current Drawdown Current decline from peak	-17.70%	-13.12%	-4.58%
Average Drawdown Average peak-to-trough decline	-15.96%	-3.91%	-12.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.71%	5.61%	+2.10%

Volatility

IAU vs. GLDY - Volatility Comparison

iShares Gold Trust (IAU) has a higher volatility of 5.50% compared to Defiance Gold Enhanced Options Income ETF (GLDY) at 4.56%. This indicates that IAU's price experiences larger fluctuations and is considered to be riskier than GLDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAU	GLDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.50%	4.56%	+0.94%
Volatility (6M) Calculated over the trailing 6-month period	23.02%	18.27%	+4.75%
Volatility (1Y) Calculated over the trailing 1-year period	26.42%	19.87%	+6.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.95%	19.58%	-1.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.90%	19.58%	-3.68%

IAU vs. GLDY - Expense Ratio Comparison

IAU has a 0.25% expense ratio, which is lower than GLDY's 0.99% expense ratio.

Dividends

IAU vs. GLDY - Dividend Comparison

IAU has not paid dividends to shareholders, while GLDY's dividend yield for the trailing twelve months is around 46.42%.

Position	TTM	2025
GLDY Defiance Gold Enhanced Options Income ETF	46.42%	37.38%
IAU iShares Gold Trust	0.00%	0.00%

Frequently Asked Questions

Can I hold both IAU and GLDY in my portfolio?

IAU and GLDY have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IAU or GLDY?

IAU has higher volatility (5.50%) compared to GLDY (4.56%). In terms of maximum drawdown, IAU dropped -45.14% vs GLDY's -13.43%.

Which ETF is better, IAU or GLDY?

On 1-year performance, IAU leads with 32.20% vs 13.84% for GLDY. On fees, IAU is cheaper at 0.25% per year. On volatility, GLDY has been the lower-risk option at 4.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAU or GLDY?

Over the 1-year period, IAU has performed better with a 32.20% return vs 13.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAU or GLDY?

IAU is cheaper with a 0.25% expense ratio, compared with 0.99% for GLDY.

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

GLDY has the higher dividend yield at 46.42%, compared with 0.00% for IAU.

What is the main difference between IAU and GLDY?

IAU is categorized as Gold, while GLDY is Derivative Income. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.25% for IAU and 0.99% for GLDY.

Which has better risk-adjusted returns?

IAU currently has the higher Sharpe Ratio (1.23 vs 0.70), 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.