IAU vs. VOO
Compare and contrast key facts about iShares Gold Trust (IAU) and Vanguard S&P 500 ETF (VOO).
IAU and VOO 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. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both IAU and VOO 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 VOO.
Key characteristics
| IAU | VOO | |
|---|---|---|
| YTD Return | 11.50% | 7.94% |
| 1Y Return | 11.99% | 28.21% |
| 3Y Return (Ann) | 8.76% | 8.82% |
| 5Y Return (Ann) | 12.32% | 13.59% |
| 10Y Return (Ann) | 5.61% | 12.69% |
| Sharpe Ratio | 1.04 | 2.33 |
| Daily Std Dev | 12.28% | 11.70% |
| Max Drawdown | -45.14% | -33.99% |
| Current Drawdown | -3.67% | -2.36% |
Correlation
The correlation between IAU and VOO is 0.03, 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. VOO - Performance Comparison
In the year-to-date period, IAU achieves a 11.50% return, which is significantly higher than VOO's 7.94% return. Over the past 10 years, IAU has underperformed VOO with an annualized return of 5.61%, while VOO has yielded a comparatively higher 12.69% 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. VOO - Expense Ratio Comparison
IAU has a 0.25% expense ratio, which is higher than VOO's 0.03% 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%.
Risk-Adjusted Performance
IAU vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Gold Trust (IAU) and Vanguard S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
IAU has not paid dividends to shareholders, while VOO's dividend yield for the trailing twelve months is around 1.36%.
| 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% |
VOO Vanguard S&P 500 ETF | 1.36% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
IAU vs. VOO - Drawdown Comparison
The maximum IAU drawdown since its inception was -45.14%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for IAU and VOO. For additional features, visit the drawdowns tool.
Volatility
IAU vs. VOO - Volatility Comparison
iShares Gold Trust (IAU) has a higher volatility of 5.17% compared to Vanguard S&P 500 ETF (VOO) at 4.09%. This indicates that IAU's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.