LEMB vs. IAU
LEMB (iShares J.P. Morgan EM Local Currency Bond ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - LEMB is a Emerging Markets Bonds fund tracking the J.P. Morgan GBI-EM Global 15 cap 4.5 floor, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, LEMB returned 1.37%/yr vs 13.31%/yr for IAU. At a 0.32 correlation, their price movements are largely independent. LEMB charges 0.30%/yr vs 0.25%/yr for IAU.
Performance
LEMB vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, LEMB achieves a 1.19% return, which is significantly lower than IAU's 2.98% return. Over the past 10 years, LEMB has underperformed IAU with an annualized return of 1.37%, while IAU has yielded a comparatively higher 13.31% annualized return.
LEMB
- 1D
- -0.57%
- 1M
- 1.13%
- YTD
- 1.19%
- 6M
- 2.18%
- 1Y
- 9.81%
- 3Y*
- 6.09%
- 5Y*
- 0.59%
- 10Y*
- 1.37%
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%
LEMB vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 1.19% | 18.02% | -1.72% | 7.23% | -10.74% | -9.92% | 3.10% | 6.40% | -7.49% | 12.49% |
IAU iShares Gold Trust | 2.98% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between LEMB and IAU is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.43 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011 | 0.32 |
The correlation between LEMB and IAU shifts across timeframes, from 0.32 (all time) to 0.45 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
LEMB vs. IAU — Risk / Return Rank
LEMB
IAU
LEMB vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) 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.
| LEMB | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.28 | ||
| Sortino ratioReturn per unit of downside risk | +0.49 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.24 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | 1.69 | -0.04 |
| Martin ratioReturn relative to average drawdown | 5.58 | 4.19 | +1.40 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LEMB | IAU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.51 | 1.23 | +0.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 1.03 | -0.96 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.84 | -0.69 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.05 | 0.62 | -0.58 |
Drawdowns
LEMB vs. IAU - Drawdown Comparison
The maximum LEMB drawdown since its inception was -30.82%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for LEMB and IAU.
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Drawdown Indicators
| LEMB | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.82% | -45.14% | +14.32% |
Max Drawdown (1Y)Largest decline over 1 year | -6.00% | -19.18% | +13.18% |
Max Drawdown (3Y)Largest decline over 3 years | -10.09% | -19.18% | +9.09% |
Max Drawdown (5Y)Largest decline over 5 years | -25.29% | -20.93% | -4.36% |
Max Drawdown (10Y)Largest decline over 10 years | -29.09% | -21.82% | -7.27% |
Current DrawdownCurrent decline from peak | -4.87% | -17.70% | +12.83% |
Average DrawdownAverage peak-to-trough decline | -12.74% | -15.96% | +3.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.76% | 7.71% | -5.95% |
Volatility
LEMB vs. IAU - Volatility Comparison
The current volatility for iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) is 2.09%, while iShares Gold Trust (IAU) has a volatility of 5.50%. This indicates that LEMB 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.
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Volatility by Period
| LEMB | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.09% | 5.50% | -3.41% |
Volatility (6M)Calculated over the trailing 6-month period | 5.34% | 23.02% | -17.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.54% | 26.42% | -19.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.24% | 17.95% | -9.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.29% | 15.90% | -6.61% |
LEMB vs. IAU - Expense Ratio Comparison
LEMB has a 0.30% expense ratio, which is higher than IAU's 0.25% expense ratio.
Dividends
LEMB vs. IAU - Dividend Comparison
LEMB's dividend yield for the trailing twelve months is around 2.41%, 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% |
LEMB iShares J.P. Morgan EM Local Currency Bond ETF | 2.41% | 2.44% | 0.00% | 1.34% | 0.86% | 3.89% | 0.00% | 4.39% | 3.46% | 0.00% | 0.00% | 0.64% |
Frequently Asked Questions
LEMB and IAU have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (5.50%) compared to LEMB (2.09%). In terms of maximum drawdown, LEMB dropped -30.82% vs IAU's -45.14%.
On 10-year performance, IAU leads with 13.31% vs 1.37% for LEMB. On fees, IAU is cheaper at 0.25% per year. On volatility, LEMB has been the lower-risk option at 2.09%. 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 13.31% return vs 1.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IAU is cheaper with a 0.25% expense ratio, compared with 0.30% for LEMB.
LEMB has the higher dividend yield at 2.41%, compared with 0.00% for IAU.
LEMB is categorized as Emerging Markets Bonds, while IAU is Gold. LEMB tracks J.P. Morgan GBI-EM Global 15 cap 4.5 floor, while IAU tracks LBMA Gold Price. Their fees differ too: 0.30% for LEMB and 0.25% for IAU.
LEMB currently has the higher Sharpe Ratio (1.51 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.
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