IWC vs. IAU

Last updated Jun 5, 2026

IWC (iShares Micro-Cap ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, IWC returned 11.44%/yr vs 13.38%/yr for IAU. At a 0.08 correlation, their price movements are largely independent. IWC charges 0.60%/yr vs 0.25%/yr for IAU.

Performance

IWC vs. IAU - Performance Comparison

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

Returns By Period

In the year-to-date period, IWC achieves a 21.41% return, which is significantly higher than IAU's 3.83% return. Over the past 10 years, IWC has underperformed IAU with an annualized return of 11.44%, while IAU has yielded a comparatively higher 13.38% annualized return.

IWC

• 1D: 2.06%
• 1M: 2.80%
• YTD: 21.41%
• 6M: 19.33%
• 1Y: 58.00%
• 3Y*: 22.83%
• 5Y*: 5.88%
• 10Y*: 11.44%

IAU

• 1D: 0.83%
• 1M: -1.65%
• YTD: 3.83%
• 6M: 6.31%
• 1Y: 32.47%
• 3Y*: 31.39%
• 5Y*: 18.52%
• 10Y*: 13.38%

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

IWC vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWC iShares Micro-Cap ETF	21.41%	22.45%	13.63%	8.99%	-21.93%	18.67%	20.88%	22.20%	-13.13%	12.79%
IAU iShares Gold Trust	3.83%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between IWC and IAU is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (10Y) Calculated over the trailing 10-year period	0.07
Correlation (All Time) Calculated using the full available price history since Aug 17, 2005	0.08

The correlation between IWC and IAU shifts across timeframes, from 0.07 (10 years) to 0.23 (1 year), reflecting how their relationship changes across market environments.

IWC vs. IAU - Sectors Allocation Comparison

Sectors	IWC	IAU
Healthcare	28.1%	-
Technology	18.4%	-
Financial Services	18.1%	-
Industrials	13.3%	-
Consumer Cyclical	5.3%	-
Energy	4.7%	-
Basic Materials	4.4%	-
Real Estate	3.5%	100.0%
Consumer Defensive	1.9%	-
Communication Services	1.8%	-
Utilities	0.6%	-

Return for Risk

IWC vs. IAU — Risk / Return Rank

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

IWC

IWC Risk / Return Rank: 76
IWC Sharpe Ratio Rank: 77
IWC Sortino Ratio Rank: 72
IWC Omega Ratio Rank: 64
IWC Calmar Ratio Rank: 86
IWC Martin Ratio Rank: 80

IAU

IAU Risk / Return Rank: 34
IAU Sharpe Ratio Rank: 35
IAU Sortino Ratio Rank: 32
IAU Omega Ratio Rank: 39
IAU Calmar Ratio Rank: 35
IAU Martin Ratio Rank: 29

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.

IWC vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) 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.

	IWC	IAU	Difference
Sharpe ratio: Return per unit of total volatility	2.47	1.24	+1.23
Sortino ratio: Return per unit of downside risk	3.22	1.63	+1.59
Omega ratio: Gain probability vs. loss probability	1.38	1.25	+0.13
Calmar ratio: Return relative to maximum drawdown	4.69	1.70	+2.99
Martin ratio: Return relative to average drawdown	15.50	4.18	+11.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWC vs. IAU - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 2.47, which is higher than the IAU Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of IWC 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.

Sharpe Ratios by Period

	IWC	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.47	1.24	+1.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	1.04	-0.80
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.84	-0.37
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.63	-0.31

Drawdowns

IWC vs. IAU - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for IWC and IAU.

Drawdown Indicators

	IWC	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-64.61%	-45.14%	-19.47%
Max Drawdown (1Y) Largest decline over 1 year	-12.43%	-19.18%	+6.75%
Max Drawdown (3Y) Largest decline over 3 years	-29.46%	-19.18%	-10.28%
Max Drawdown (5Y) Largest decline over 5 years	-40.68%	-20.93%	-19.75%
Max Drawdown (10Y) Largest decline over 10 years	-47.21%	-21.82%	-25.39%
Current Drawdown Current decline from peak	-0.91%	-17.02%	+16.11%
Average Drawdown Average peak-to-trough decline	-15.27%	-15.96%	+0.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.75%	7.79%	-4.04%

Volatility

IWC vs. IAU - Volatility Comparison

iShares Micro-Cap ETF (IWC) has a higher volatility of 7.26% compared to iShares Gold Trust (IAU) at 5.50%. This indicates that IWC's price experiences larger fluctuations and is considered to be riskier than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWC	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.26%	5.50%	+1.76%
Volatility (6M) Calculated over the trailing 6-month period	17.35%	23.03%	-5.68%
Volatility (1Y) Calculated over the trailing 1-year period	23.63%	26.41%	-2.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.44%	17.94%	+6.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.42%	15.90%	+8.52%

IWC vs. IAU - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

IWC vs. IAU - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 0.89%, while IAU has not paid dividends to shareholders.

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%
IWC iShares Micro-Cap ETF	0.89%	1.10%	1.06%	1.17%	1.18%	0.78%	0.98%	1.19%	1.01%	1.09%	1.16%	1.49%

Frequently Asked Questions

Can I hold both IWC and IAU in my portfolio?

IWC and IAU have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWC or IAU?

IWC has higher volatility (7.26%) compared to IAU (5.50%). In terms of maximum drawdown, IWC dropped -64.61% vs IAU's -45.14%.

Which ETF is better, IWC or IAU?

On 10-year performance, IAU leads with 13.38% vs 11.44% for IWC. On fees, IAU is cheaper at 0.25% per year. On volatility, IAU has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWC or IAU?

Over the 10-year period, IAU has performed better with a 13.38% return vs 11.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWC or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.60% for IWC.

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

IWC has the higher dividend yield at 0.89%, compared with 0.00% for IAU.

What is the main difference between IWC and IAU?

IWC is categorized as Small Cap Blend Equities, while IAU is Gold. IWC tracks Russell Microcap Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.60% for IWC and 0.25% for IAU.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (2.47 vs 1.24), 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.