PDN vs. IAU
PDN (Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - PDN is a Foreign Small & Mid Cap Equities fund tracking the FTSE RAFI Developed x US Mid/Small, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, PDN returned 8.78%/yr vs 11.76%/yr for IAU. At a 0.22 correlation, their price movements are largely independent. PDN charges 0.49%/yr vs 0.25%/yr for IAU.
Performance
PDN vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, PDN achieves a 7.41% return, which is significantly higher than IAU's -4.73% return. Over the past 10 years, PDN has underperformed IAU with an annualized return of 8.78%, while IAU has yielded a comparatively higher 11.76% annualized return.
PDN
- 1D
- -2.19%
- 1M
- -3.17%
- YTD
- 7.41%
- 6M
- 7.22%
- 1Y
- 22.25%
- 3Y*
- 17.73%
- 5Y*
- 6.30%
- 10Y*
- 8.78%
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%
PDN vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | 7.41% | 38.34% | 0.57% | 13.35% | -17.35% | 9.03% | 10.65% | 19.17% | -18.38% | 30.74% |
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 PDN and IAU is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Sep 28, 2007 | 0.22 |
Over the past year, PDN and IAU have become more correlated (0.48) than their long-term average of 0.22, meaning their price movements have been converging.
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Return for Risk
PDN vs. IAU — Risk / Return Rank
PDN
IAU
PDN vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) 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.
| PDN | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.67 | ||
| Sortino ratioReturn per unit of downside risk | +0.93 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.17 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.99 | 0.88 | +1.10 |
| Martin ratioReturn relative to average drawdown | 7.45 | 2.37 | +5.08 |
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Drawdowns
PDN vs. IAU - Drawdown Comparison
The maximum PDN drawdown since its inception was -59.32%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for PDN and IAU.
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Drawdown Indicators
| PDN | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.32% | -45.14% | -14.18% |
Max Drawdown (1Y)Largest decline over 1 year | -11.26% | -24.40% | +13.14% |
Max Drawdown (3Y)Largest decline over 3 years | -13.25% | -24.40% | +11.15% |
Max Drawdown (5Y)Largest decline over 5 years | -33.68% | -24.40% | -9.28% |
Max Drawdown (10Y)Largest decline over 10 years | -41.94% | -24.40% | -17.54% |
Current DrawdownCurrent decline from peak | -5.11% | -23.87% | +18.76% |
Average DrawdownAverage peak-to-trough decline | -11.57% | -15.97% | +4.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.99% | 9.07% | -6.08% |
Volatility
PDN vs. IAU - Volatility Comparison
The current volatility for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) is 5.67%, while iShares Gold Trust (IAU) has a volatility of 8.10%. This indicates that PDN 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
| PDN | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.67% | 8.10% | -2.43% |
Volatility (6M)Calculated over the trailing 6-month period | 13.10% | 24.23% | -11.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.37% | 27.38% | -12.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.47% | 18.18% | -1.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.96% | 15.98% | +0.98% |
PDN vs. IAU - Expense Ratio Comparison
PDN has a 0.49% expense ratio, which is higher than IAU's 0.25% expense ratio.
Dividends
PDN vs. IAU - Dividend Comparison
PDN's dividend yield for the trailing twelve months is around 3.32%, 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% |
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | 3.32% | 3.36% | 3.36% | 3.16% | 2.68% | 2.42% | 1.79% | 2.60% | 2.21% | 2.42% | 2.16% | 2.06% |
Frequently Asked Questions
PDN and IAU have a correlation of 0.48, 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 PDN (5.67%). In terms of maximum drawdown, PDN dropped -59.32% vs IAU's -45.14%.
On 10-year performance, IAU leads with 11.76% vs 8.78% for PDN. On fees, IAU is cheaper at 0.25% per year. On volatility, PDN has been the lower-risk option at 5.67%. 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 8.78%. 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 0.49% for PDN.
PDN has the higher dividend yield at 3.32%, compared with 0.00% for IAU.
PDN is categorized as Foreign Small & Mid Cap Equities, while IAU is Gold. PDN tracks FTSE RAFI Developed x US Mid/Small, while IAU tracks LBMA Gold Price. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.49% for PDN and 0.25% for IAU.
PDN currently has the higher Sharpe Ratio (1.46 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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