MXI vs. IAU
MXI (iShares Global Materials ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - MXI is a Materials fund tracking the S&P Global Materials Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, MXI returned 11.38%/yr vs 11.76%/yr for IAU. At a 0.30 correlation, their price movements are largely independent. MXI charges 0.46%/yr vs 0.25%/yr for IAU.
Performance
MXI vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, MXI achieves a 11.62% return, which is significantly higher than IAU's -4.73% return. Both investments have delivered pretty close results over the past 10 years, with MXI having a 11.38% annualized return and IAU not far ahead at 11.76%.
MXI
- 1D
- -2.55%
- 1M
- -2.16%
- YTD
- 11.62%
- 6M
- 10.06%
- 1Y
- 29.81%
- 3Y*
- 13.19%
- 5Y*
- 6.60%
- 10Y*
- 11.38%
IAU
- 1D
- -1.87%
- 1M
- -8.82%
- YTD
- -4.73%
- 6M
- -8.68%
- 1Y
- 21.45%
- 3Y*
- 28.61%
- 5Y*
- 18.02%
- 10Y*
- 11.76%
MXI vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MXI iShares Global Materials ETF | 11.62% | 27.43% | -8.25% | 14.37% | -9.09% | 15.06% | 22.31% | 22.19% | -16.06% | 30.33% |
IAU iShares Gold Trust | -4.73% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between MXI and IAU is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.60 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.30 |
Correlation (All Time) Calculated using the full available price history since Sep 22, 2006 | 0.30 |
Over the past year, MXI and IAU have become more correlated (0.60) than their long-term average of 0.30, meaning their price movements have been converging.
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Return for Risk
MXI vs. IAU — Risk / Return Rank
MXI
IAU
MXI vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Global Materials ETF (MXI) 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.
| MXI | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.66 | ||
| Sortino ratioReturn per unit of downside risk | +0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.17 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.85 | 0.88 | +0.97 |
| Martin ratioReturn relative to average drawdown | 7.13 | 2.37 | +4.76 |
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Drawdowns
MXI vs. IAU - Drawdown Comparison
The maximum MXI drawdown since its inception was -68.44%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for MXI and IAU.
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Drawdown Indicators
| MXI | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.44% | -45.14% | -23.30% |
Max Drawdown (1Y)Largest decline over 1 year | -16.18% | -24.40% | +8.22% |
Max Drawdown (3Y)Largest decline over 3 years | -22.25% | -24.40% | +2.15% |
Max Drawdown (5Y)Largest decline over 5 years | -28.76% | -24.40% | -4.36% |
Max Drawdown (10Y)Largest decline over 10 years | -39.52% | -24.40% | -15.12% |
Current DrawdownCurrent decline from peak | -7.43% | -23.87% | +16.44% |
Average DrawdownAverage peak-to-trough decline | -18.03% | -15.97% | -2.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.19% | 9.07% | -4.88% |
Volatility
MXI vs. IAU - Volatility Comparison
iShares Global Materials ETF (MXI) and iShares Gold Trust (IAU) have volatilities of 8.08% and 8.10%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MXI | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.08% | 8.10% | -0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 17.94% | 24.23% | -6.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.66% | 27.38% | -6.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.86% | 18.18% | +1.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.42% | 15.98% | +4.44% |
MXI vs. IAU - Expense Ratio Comparison
MXI has a 0.46% expense ratio, which is higher than IAU's 0.25% expense ratio.
Dividends
MXI vs. IAU - Dividend Comparison
MXI's dividend yield for the trailing twelve months is around 1.72%, 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% |
MXI iShares Global Materials ETF | 1.72% | 2.22% | 3.24% | 2.92% | 4.84% | 3.51% | 1.21% | 3.64% | 2.77% | 1.76% | 1.31% | 3.64% |
Frequently Asked Questions
MXI and IAU have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (8.10%) compared to MXI (8.08%). In terms of maximum drawdown, MXI dropped -68.44% vs IAU's -45.14%.
On 10-year performance, IAU leads with 11.76% vs 11.38% for MXI. On fees, IAU is cheaper at 0.25% per year. Their volatility is very similar. 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 11.76% return vs 11.38%. 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 0.46% for MXI.
MXI has the higher dividend yield at 1.72%, compared with 0.00% for IAU.
MXI is categorized as Materials, while IAU is Gold. MXI tracks S&P Global Materials Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.46% for MXI and 0.25% for IAU.
MXI currently has the higher Sharpe Ratio (1.45 vs 0.79), 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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