USAGX vs. IAU

Last updated Jun 3, 2026

USAGX (USAA Precious Metals and Minerals Fund) and IAU (iShares Gold Trust) are both funds - USAGX is a Precious Metals fund managed by Victory, while IAU is a Gold fund tracking the LBMA Gold Price. Over the past 10 years, USAGX returned 13.09%/yr vs 13.42%/yr for IAU. A 0.75 correlation means they provide meaningful diversification when combined. USAGX charges 1.12%/yr vs 0.25%/yr for IAU.

Performance

USAGX vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in USAA Precious Metals and Minerals Fund (USAGX) 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, USAGX achieves a -0.58% return, which is significantly lower than IAU's 4.00% return. Both investments have delivered pretty close results over the past 10 years, with USAGX having a 13.09% annualized return and IAU not far ahead at 13.42%.

USAGX

• 1D: -3.28%
• 1M: -1.24%
• YTD: -0.58%
• 6M: 5.19%
• 1Y: 57.84%
• 3Y*: 40.08%
• 5Y*: 17.07%
• 10Y*: 13.09%

IAU

• 1D: 0.18%
• 1M: -2.65%
• YTD: 4.00%
• 6M: 6.47%
• 1Y: 32.38%
• 3Y*: 31.72%
• 5Y*: 18.82%
• 10Y*: 13.42%

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

USAGX vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USAGX USAA Precious Metals and Minerals Fund	-0.58%	156.06%	10.76%	6.73%	-11.80%	-10.14%	25.85%	42.97%	-12.26%	9.65%
IAU iShares Gold Trust	4.00%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between USAGX and IAU is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jan 31, 2005	0.75

The correlation between USAGX and IAU has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.

Return for Risk

USAGX vs. IAU — Risk / Return Rank

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

USAGX

USAGX Risk / Return Rank: 26
USAGX Sharpe Ratio Rank: 28
USAGX Sortino Ratio Rank: 20
USAGX Omega Ratio Rank: 27
USAGX Calmar Ratio Rank: 34
USAGX Martin Ratio Rank: 22

IAU

IAU Risk / Return Rank: 34
IAU Sharpe Ratio Rank: 34
IAU Sortino Ratio Rank: 30
IAU Omega Ratio Rank: 37
IAU Calmar Ratio Rank: 37
IAU Martin Ratio Rank: 31

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.

USAGX vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for USAA Precious Metals and Minerals Fund (USAGX) 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.

	USAGX	IAU	Difference
Sharpe ratio Return per unit of total volatility	1.56	1.23	+0.33
Sortino ratio Return per unit of downside risk	1.96	1.63	+0.33
Omega ratio Gain probability vs. loss probability	1.28	1.25	+0.03
Calmar ratio Return relative to maximum drawdown	2.23	1.87	+0.36
Martin ratio Return relative to average drawdown	5.83	4.69	+1.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USAGX vs. IAU - Sharpe Ratio Comparison

The current USAGX Sharpe Ratio is 1.56, which is comparable to the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of USAGX 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

	USAGX	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.56	1.23	+0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	1.05	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.85	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	0.63	-0.44

Drawdowns

USAGX vs. IAU - Drawdown Comparison

The maximum USAGX drawdown since its inception was -80.89%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for USAGX and IAU.

Drawdown Indicators

	USAGX	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-80.89%	-45.14%	-35.75%
Max Drawdown (1Y) Largest decline over 1 year	-30.12%	-19.18%	-10.94%
Max Drawdown (3Y) Largest decline over 3 years	-30.12%	-19.18%	-10.94%
Max Drawdown (5Y) Largest decline over 5 years	-45.72%	-20.93%	-24.79%
Max Drawdown (10Y) Largest decline over 10 years	-51.03%	-21.82%	-29.21%
Current Drawdown Current decline from peak	-25.60%	-16.88%	-8.72%
Average Drawdown Average peak-to-trough decline	-43.08%	-15.96%	-27.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.50%	7.63%	+3.87%

Volatility

USAGX vs. IAU - Volatility Comparison

USAA Precious Metals and Minerals Fund (USAGX) has a higher volatility of 14.19% compared to iShares Gold Trust (IAU) at 5.78%. This indicates that USAGX'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

	USAGX	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.19%	5.78%	+8.41%
Volatility (6M) Calculated over the trailing 6-month period	35.25%	23.00%	+12.25%
Volatility (1Y) Calculated over the trailing 1-year period	43.02%	26.51%	+16.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.86%	17.96%	+14.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.81%	15.90%	+16.91%

USAGX vs. IAU - Expense Ratio Comparison

USAGX has a 1.12% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

USAGX vs. IAU - Dividend Comparison

USAGX's dividend yield for the trailing twelve months is around 0.24%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
USAGX USAA Precious Metals and Minerals Fund	0.24%	0.24%	0.00%	2.45%	0.95%	0.84%	0.04%	0.00%	0.00%	0.00%	4.20%

Frequently Asked Questions

Can I hold both USAGX and IAU in my portfolio?

USAGX and IAU have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USAGX or IAU?

USAGX has higher volatility (14.19%) compared to IAU (5.78%). In terms of maximum drawdown, USAGX dropped -80.89% vs IAU's -45.14%.

Which has better risk-adjusted returns?

USAGX currently has the higher Sharpe Ratio (1.56 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.