LDEM vs. IAU

Last updated Jun 4, 2026

LDEM (iShares ESG MSCI EM Leaders ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - LDEM is a Emerging Markets Equities fund tracking the MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 5 years, LDEM returned 1.89%/yr vs 18.32%/yr for IAU. At a 0.30 correlation, their price movements are largely independent. LDEM charges 0.16%/yr vs 0.25%/yr for IAU.

Performance

LDEM vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI EM Leaders ETF (LDEM) 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, LDEM achieves a 6.92% return, which is significantly higher than IAU's 2.98% return.

LDEM

• 1D: -1.61%
• 1M: 0.72%
• YTD: 6.92%
• 6M: 7.76%
• 1Y: 25.33%
• 3Y*: 15.06%
• 5Y*: 1.89%
• 10Y*: —

IAU

• 1D: -0.98%
• 1M: -1.62%
• YTD: 2.98%
• 6M: 5.50%
• 1Y: 32.20%
• 3Y*: 31.29%
• 5Y*: 18.32%
• 10Y*: 13.31%

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

LDEM vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LDEM iShares ESG MSCI EM Leaders ETF	6.92%	32.49%	5.87%	6.49%	-22.46%	-2.03%	15.59%
IAU iShares Gold Trust	2.98%	63.95%	26.85%	12.84%	-0.63%	-4.00%	21.11%

Correlation

The correlation between LDEM and IAU is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.31
Correlation (All Time) Calculated using the full available price history since Feb 13, 2020	0.30

LDEM vs. IAU - Sectors Allocation Comparison

Sectors	LDEM	IAU
Financial Services	28.2%	-
Consumer Cyclical	14.0%	-
Technology	13.0%	-
Communication Services	11.2%	-
Industrials	8.0%	-
Basic Materials	7.8%	-
Energy	5.3%	-
Healthcare	4.3%	-
Consumer Defensive	3.6%	-
Utilities	2.9%	-
Real Estate	1.7%	100.0%

Return for Risk

LDEM vs. IAU — Risk / Return Rank

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

LDEM

LDEM Risk / Return Rank: 40
LDEM Sharpe Ratio Rank: 40
LDEM Sortino Ratio Rank: 39
LDEM Omega Ratio Rank: 42
LDEM Calmar Ratio Rank: 39
LDEM Martin Ratio Rank: 40

IAU

IAU Risk / Return Rank: 32
IAU Sharpe Ratio Rank: 33
IAU Sortino Ratio Rank: 29
IAU Omega Ratio Rank: 36
IAU Calmar Ratio Rank: 33
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.

LDEM vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI EM Leaders ETF (LDEM) 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.

	LDEM	IAU	Difference
Sharpe ratio Return per unit of total volatility	1.44	1.23	+0.21
Sortino ratio Return per unit of downside risk	2.03	1.62	+0.41
Omega ratio Gain probability vs. loss probability	1.27	1.24	+0.02
Calmar ratio Return relative to maximum drawdown	1.93	1.69	+0.24
Martin ratio Return relative to average drawdown	6.33	4.19	+2.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LDEM vs. IAU - Sharpe Ratio Comparison

The current LDEM Sharpe Ratio is 1.44, which is comparable to the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of LDEM 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

	LDEM	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	1.23	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	1.03	-0.93
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.84	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.62	-0.36

Drawdowns

LDEM vs. IAU - Drawdown Comparison

The maximum LDEM drawdown since its inception was -40.82%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for LDEM and IAU.

Drawdown Indicators

	LDEM	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-40.82%	-45.14%	+4.32%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-19.18%	+5.97%
Max Drawdown (3Y) Largest decline over 3 years	-15.12%	-19.18%	+4.06%
Max Drawdown (5Y) Largest decline over 5 years	-39.17%	-20.93%	-18.24%
Max Drawdown (10Y) Largest decline over 10 years	—	-21.82%	—
Current Drawdown Current decline from peak	-3.92%	-17.70%	+13.78%
Average Drawdown Average peak-to-trough decline	-17.36%	-15.96%	-1.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	7.71%	-3.70%

Volatility

LDEM vs. IAU - Volatility Comparison

iShares ESG MSCI EM Leaders ETF (LDEM) has a higher volatility of 6.08% compared to iShares Gold Trust (IAU) at 5.50%. This indicates that LDEM'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

	LDEM	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	5.50%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	23.02%	-9.12%
Volatility (1Y) Calculated over the trailing 1-year period	17.68%	26.42%	-8.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	17.95%	+1.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	15.90%	+4.83%

LDEM vs. IAU - Expense Ratio Comparison

LDEM has a 0.16% expense ratio, which is lower than IAU's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LDEM vs. IAU - Dividend Comparison

LDEM's dividend yield for the trailing twelve months is around 3.04%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LDEM iShares ESG MSCI EM Leaders ETF	3.04%	3.26%	2.64%	3.20%	4.93%	1.82%	1.89%

Frequently Asked Questions

Can I hold both LDEM and IAU in my portfolio?

LDEM and IAU have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LDEM or IAU?

LDEM has higher volatility (6.08%) compared to IAU (5.50%). In terms of maximum drawdown, LDEM dropped -40.82% vs IAU's -45.14%.

Which ETF is better, LDEM or IAU?

On 5-year performance, IAU leads with 18.32% vs 1.89% for LDEM. On fees, LDEM is cheaper at 0.16% 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, LDEM or IAU?

Over the 5-year period, IAU has performed better with a 18.32% return vs 1.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDEM or IAU?

LDEM is cheaper with a 0.16% expense ratio, compared with 0.25% for IAU.

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

LDEM has the higher dividend yield at 3.04%, compared with 0.00% for IAU.

What is the main difference between LDEM and IAU?

LDEM is categorized as Emerging Markets Equities, while IAU is Gold. LDEM tracks MSCI EM Extended ESG Leaders 5% Issuer Capped Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.16% for LDEM and 0.25% for IAU.

Which has better risk-adjusted returns?

LDEM currently has the higher Sharpe Ratio (1.44 vs 1.23), 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.