IBHE vs. IAU

Last updated Jun 25, 2026

IBHE (iShares iBonds 2025 Term High Yield & Income ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - IBHE is a High Yield Bonds fund tracking the Bloomberg 2025 Term High Yield and Income Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 5 years, IBHE returned 3.89%/yr vs 17.22%/yr for IAU. At a 0.16 correlation, their price movements are largely independent. IBHE charges 0.35%/yr vs 0.25%/yr for IAU.

Performance

IBHE vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds 2025 Term High Yield & Income ETF (IBHE) and iShares Gold Trust (IAU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBHE

• 1D: 0.00%
• 1M: 0.00%
• YTD: 0.00%
• 6M: 0.00%
• 1Y: 2.00%
• 3Y*: 5.93%
• 5Y*: 3.89%
• 10Y*: —

IAU

• 1D: -3.03%
• 1M: -11.58%
• YTD: -7.61%
• 6M: -11.09%
• 1Y: 19.64%
• 3Y*: 27.30%
• 5Y*: 17.22%
• 10Y*: 11.42%

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

IBHE vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IBHE iShares iBonds 2025 Term High Yield & Income ETF	0.00%	4.45%	7.62%	10.32%	-4.08%	4.40%	4.16%	5.49%
IAU iShares Gold Trust	-7.61%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	18.27%

Correlation

The correlation between IBHE and IAU is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.20
Correlation (All Time) Calculated using the full available price history since May 9, 2019	0.16

The correlation between IBHE and IAU shifts across timeframes, from 0.04 (1 year) to 0.20 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

IBHE vs. IAU — Risk / Return Rank

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

IBHE

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

IAU

IAU Risk / Return Rank: 21
IAU Sharpe Ratio Rank: 22
IAU Sortino Ratio Rank: 20
IAU Omega Ratio Rank: 24
IAU Calmar Ratio Rank: 18
IAU Martin Ratio Rank: 20

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.

IBHE vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 2025 Term High Yield & Income ETF (IBHE) and iShares Gold Trust (IAU). 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.

	IBHE	IAU	Difference
Sharpe ratio: Return per unit of total volatility	3.89	0.72	+3.18
Sortino ratio: Return per unit of downside risk	7.42	1.06	+6.36
Omega ratio: Gain probability vs. loss probability	2.32	1.15	+1.16
Calmar ratio: Return relative to maximum drawdown	25.02	0.75	+24.27
Martin ratio: Return relative to average drawdown	98.47	2.14	+96.34

IBHE vs. IAU - Sharpe Ratio Comparison

The current IBHE Sharpe Ratio is 3.89, which is higher than the IAU Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of IBHE and IAU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IBHE vs. IAU - Drawdown Comparison

The maximum IBHE drawdown since its inception was -26.91%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for IBHE and IAU.

Drawdown Indicators

	IBHE	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-26.91%	-45.14%	+18.23%
Max Drawdown (1Y) Largest decline over 1 year	-0.11%	-26.17%	+26.06%
Max Drawdown (3Y) Largest decline over 3 years	-0.94%	-26.17%	+25.23%
Max Drawdown (5Y) Largest decline over 5 years	-8.51%	-26.17%	+17.66%
Max Drawdown (10Y) Largest decline over 10 years	—	-26.17%	—
Current Drawdown Current decline from peak	0.00%	-26.17%	+26.17%
Average Drawdown Average peak-to-trough decline	-1.42%	-15.98%	+14.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.05%	9.21%	-9.16%

Volatility

IBHE vs. IAU - Volatility Comparison

The current volatility for iShares iBonds 2025 Term High Yield & Income ETF (IBHE) is 0.00%, while iShares Gold Trust (IAU) has a volatility of 8.50%. This indicates that IBHE experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBHE	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	8.50%	-8.50%
Volatility (6M) Calculated over the trailing 6-month period	0.38%	24.42%	-24.04%
Volatility (1Y) Calculated over the trailing 1-year period	0.74%	27.55%	-26.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	18.24%	-13.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.52%	16.01%	-4.49%

IBHE vs. IAU - Expense Ratio Comparison

IBHE has a 0.35% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

IBHE vs. IAU - Dividend Comparison

Neither IBHE nor IAU has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
IBHE iShares iBonds 2025 Term High Yield & Income ETF	2.29%	4.53%	6.92%	7.17%	5.77%	4.84%	5.74%	3.73%

Frequently Asked Questions

Can I hold both IBHE and IAU in my portfolio?

IBHE and IAU have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBHE or IAU?

IAU has higher volatility (8.50%) compared to IBHE (0.00%). In terms of maximum drawdown, IBHE dropped -26.91% vs IAU's -45.14%.

Which ETF is better, IBHE or IAU?

On 5-year performance, IAU leads with 17.22% vs 3.89% for IBHE. On fees, IAU is cheaper at 0.25% per year. On volatility, IBHE has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBHE or IAU?

Over the 5-year period, IAU has performed better with a 17.22% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBHE or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.35% for IBHE.

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

IBHE has the higher dividend yield at 2.29%, compared with 0.00% for IAU.

What is the main difference between IBHE and IAU?

IBHE is categorized as High Yield Bonds, while IAU is Gold. IBHE tracks Bloomberg 2025 Term High Yield and Income Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.35% for IBHE and 0.25% for IAU.

Which has better risk-adjusted returns?

IBHE currently has the higher Sharpe Ratio (3.89 vs 0.72), 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.