IAU vs. VBR

Last updated Jun 7, 2026

IAU (iShares Gold Trust) and VBR (Vanguard Small-Cap Value ETF) are both exchange-traded funds - IAU is a Gold fund tracking the LBMA Gold Price, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, IAU returned 12.97%/yr vs 10.33%/yr for VBR. At a 0.07 correlation, their price movements are largely independent. IAU charges 0.25%/yr vs 0.05%/yr for VBR.

Performance

IAU vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Gold Trust (IAU) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAU achieves a 0.06% return, which is significantly lower than VBR's 11.27% return. Over the past 10 years, IAU has outperformed VBR with an annualized return of 12.97%, while VBR has yielded a comparatively lower 10.33% annualized return.

IAU

• 1D: -3.63%
• 1M: -8.61%
• YTD: 0.06%
• 6M: 2.63%
• 1Y: 30.01%
• 3Y*: 29.73%
• 5Y*: 17.65%
• 10Y*: 12.97%

VBR

• 1D: -1.10%
• 1M: 0.32%
• YTD: 11.27%
• 6M: 11.31%
• 1Y: 24.65%
• 3Y*: 15.91%
• 5Y*: 7.88%
• 10Y*: 10.33%

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

IAU vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAU iShares Gold Trust	0.06%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%
VBR Vanguard Small-Cap Value ETF	11.27%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%

Correlation

The correlation between IAU and VBR 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	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.04
Correlation (All Time) Calculated using the full available price history since Jan 31, 2005	0.07

The correlation between IAU and VBR shifts across timeframes, from 0.04 (10 years) to 0.20 (1 year), reflecting how their relationship changes across market environments.

IAU vs. VBR - Sectors Allocation Comparison

Sectors	IAU	VBR
Real Estate	100.0%	10.1%
Basic Materials	-	6.3%
Communication Services	-	2.5%
Consumer Cyclical	-	12.4%
Consumer Defensive	-	4.0%
Energy	-	5.2%
Financial Services	-	17.6%
Healthcare	-	7.9%
Industrials	-	18.1%
Technology	-	10.6%
Utilities	-	4.8%

Return for Risk

IAU vs. VBR — Risk / Return Rank

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

IAU

IAU Risk / Return Rank: 29
IAU Sharpe Ratio Rank: 30
IAU Sortino Ratio Rank: 27
IAU Omega Ratio Rank: 33
IAU Calmar Ratio Rank: 30
IAU Martin Ratio Rank: 27

VBR

VBR Risk / Return Rank: 55
VBR Sharpe Ratio Rank: 51
VBR Sortino Ratio Rank: 53
VBR Omega Ratio Rank: 49
VBR Calmar Ratio Rank: 61
VBR Martin Ratio Rank: 60

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. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Gold Trust (IAU) and Vanguard Small-Cap Value ETF (VBR). 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	VBR	Difference
Sharpe ratio: Return per unit of total volatility	1.07	1.73	-0.66
Sortino ratio: Return per unit of downside risk	1.45	2.54	-1.10
Omega ratio: Gain probability vs. loss probability	1.22	1.30	-0.08
Calmar ratio: Return relative to maximum drawdown	1.42	2.97	-1.55
Martin ratio: Return relative to average drawdown	3.60	10.46	-6.86
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. VBR - Sharpe Ratio Comparison

The current IAU Sharpe Ratio is 1.07, which is lower than the VBR Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of IAU and VBR, 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	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.07	1.73	-0.66
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.98	0.40	+0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	0.48	+0.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.42	+0.20

Drawdowns

IAU vs. VBR - Drawdown Comparison

The maximum IAU drawdown since its inception was -45.14%, smaller than the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for IAU and VBR.

Drawdown Indicators

	IAU	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-45.14%	-61.98%	+16.84%
Max Drawdown (1Y) Largest decline over 1 year	-20.04%	-8.85%	-11.19%
Max Drawdown (3Y) Largest decline over 3 years	-20.04%	-24.19%	+4.15%
Max Drawdown (5Y) Largest decline over 5 years	-20.93%	-24.19%	+3.26%
Max Drawdown (10Y) Largest decline over 10 years	-21.82%	-45.28%	+23.46%
Current Drawdown Current decline from peak	-20.04%	-1.10%	-18.94%
Average Drawdown Average peak-to-trough decline	-15.97%	-8.27%	-7.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.89%	2.51%	+5.38%

Volatility

IAU vs. VBR - Volatility Comparison

iShares Gold Trust (IAU) has a higher volatility of 5.64% compared to Vanguard Small-Cap Value ETF (VBR) at 3.86%. This indicates that IAU's price experiences larger fluctuations and is considered to be riskier than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAU	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	3.86%	+1.78%
Volatility (6M) Calculated over the trailing 6-month period	23.33%	10.49%	+12.84%
Volatility (1Y) Calculated over the trailing 1-year period	26.67%	15.18%	+11.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.01%	19.77%	-1.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.94%	21.73%	-5.79%

IAU vs. VBR - Expense Ratio Comparison

IAU has a 0.25% expense ratio, which is higher than VBR's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IAU vs. VBR - Dividend Comparison

IAU has not paid dividends to shareholders, while VBR's dividend yield for the trailing twelve months is around 1.77%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VBR Vanguard Small-Cap Value ETF	1.77%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both IAU and VBR in my portfolio?

IAU and VBR 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, IAU or VBR?

IAU has higher volatility (5.64%) compared to VBR (3.86%). In terms of maximum drawdown, IAU dropped -45.14% vs VBR's -61.98%.

Which ETF is better, IAU or VBR?

On 10-year performance, IAU leads with 12.97% vs 10.33% for VBR. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 3.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IAU or VBR?

Over the 10-year period, IAU has performed better with a 12.97% return vs 10.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IAU or VBR?

VBR is cheaper with a 0.05% expense ratio, compared with 0.25% for IAU.

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

VBR has the higher dividend yield at 1.77%, compared with 0.00% for IAU.

What is the main difference between IAU and VBR?

IAU is categorized as Gold, while VBR is Small Cap Value Equities. IAU tracks LBMA Gold Price, while VBR tracks CRSP US Small Cap Value Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.25% for IAU and 0.05% for VBR.

Which has better risk-adjusted returns?

VBR currently has the higher Sharpe Ratio (1.73 vs 1.07), 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.