IAU vs. VGK
IAU (iShares Gold Trust) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - IAU is a Gold fund tracking the LBMA Gold Price, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, IAU returned 11.45%/yr vs 10.04%/yr for VGK. Their 0.21 correlation means their historical movements had little consistent relationship. IAU charges 0.25%/yr vs 0.06%/yr for VGK.
Performance
IAU vs. VGK - Performance Comparison
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Returns By Period
In the year-to-date period, IAU achieves a -6.14% return, which is significantly lower than VGK's 10.75% return. Over the past 10 years, IAU has outperformed VGK with an annualized return of 11.45%, while VGK has yielded a comparatively lower 10.04% annualized return.
IAU
- 1D
- 0.03%
- 1M
- -1.70%
- 6M
- -13.00%
- YTD
- -6.14%
- 1Y
- 20.38%
- 3Y*
- 27.49%
- 5Y*
- 17.16%
- 10Y*
- 11.45%
- ALL TIME*
- 10.71%
VGK
- 1D
- 0.38%
- 1M
- 1.77%
- 6M
- 4.99%
- YTD
- 10.75%
- 1Y
- 24.53%
- 3Y*
- 17.52%
- 5Y*
- 9.15%
- 10Y*
- 10.04%
- ALL TIME*
- 6.49%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $325.17M | $361.79M | $469.22M | |
| $216.43M | $182.63M | $227.46M |
IAU vs. VGK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IAU iShares Gold Trust | -6.14% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
VGK Vanguard FTSE Europe ETF | 10.75% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
Correlation
The correlation between IAU and VGK is 0.45, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.45 |
Correlation (3Y) Balances recent behavior with more history. | 0.34 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.30 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.23 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | 0.21 |
Over the past year, IAU and VGK have become more correlated (0.45) than their long-term average of 0.21, meaning their price movements have been converging.
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Return for Risk
IAU vs. VGK — Risk / Return Rank
IAU
VGK
IAU vs. VGK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Gold Trust (IAU) and Vanguard FTSE Europe ETF (VGK). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IAU | VGK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.82 | ||
| Sortino ratioReturn per unit of downside risk | -1.17 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.27 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.78 | 2.04 | -1.26 |
| Martin ratioReturn relative to average drawdown | 1.67 | 7.76 | -6.09 |
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Drawdowns
IAU vs. VGK - Drawdown Comparison
The maximum IAU drawdown since its inception was -45.14%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for IAU and VGK.
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Drawdown Indicators
| IAU | VGK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -45.14% | -63.61% | +18.47% |
Max Drawdown (1Y)Largest decline over 1 year | -26.36% | -12.09% | -14.27% |
Max Drawdown (3Y)Largest decline over 3 years | -26.36% | -14.31% | -12.05% |
Max Drawdown (5Y)Largest decline over 5 years | -26.36% | -32.74% | +6.38% |
Max Drawdown (10Y)Largest decline over 10 years | -26.36% | -37.24% | +10.88% |
Current DrawdownCurrent decline from peak | -24.99% | -0.07% | -24.92% |
Average DrawdownAverage peak-to-trough decline | -16.02% | -13.25% | -2.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.26% | 3.17% | +9.09% |
Volatility
IAU vs. VGK - Volatility Comparison
iShares Gold Trust (IAU) has a higher volatility of 5.99% compared to Vanguard FTSE Europe ETF (VGK) at 4.11%. This indicates that IAU's price experiences larger fluctuations and is considered to be riskier than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IAU | VGK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.99% | 4.11% | +1.88% |
Volatility (6M)Calculated over the trailing 6-month period | 20.79% | 13.73% | +7.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.90% | 15.88% | +12.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.43% | 17.98% | +0.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.08% | 18.49% | -2.41% |
IAU vs. VGK - Expense Ratio Comparison
IAU has a 0.25% expense ratio, which is higher than VGK's 0.06% 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. VGK - Dividend Comparison
IAU has not paid dividends to shareholders, while VGK's dividend yield for the trailing twelve months is around 2.82%.
| 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% |
VGK Vanguard FTSE Europe ETF | 2.82% | 2.86% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% |
Frequently Asked Questions
IAU and VGK have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (5.99%) compared to VGK (4.11%). In terms of maximum drawdown, IAU dropped -45.14% vs VGK's -63.61%.
On 10-year performance, IAU leads with 11.45% vs 10.04% for VGK. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IAU has performed better with a 11.45% return vs 10.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGK is cheaper with a 0.06% expense ratio, compared with 0.25% for IAU.
VGK has the higher dividend yield at 2.82%, compared with 0.00% for IAU.
IAU is categorized as Gold, while VGK is Europe Equities. IAU tracks LBMA Gold Price, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.25% for IAU and 0.06% for VGK.
VGK currently has the higher Sharpe Ratio (1.55 vs 0.74), 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.
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