VAW vs. IAU
Compare and contrast key facts about Vanguard Materials ETF (VAW) and iShares Gold Trust (IAU).
VAW and IAU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VAW is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Materials 25/50 Index. It was launched on Jan 26, 2004. IAU is a passively managed fund by iShares that tracks the performance of the Gold Bullion. It was launched on Jan 28, 2005. Both VAW and IAU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VAW or IAU.
Key characteristics
| VAW | IAU | |
|---|---|---|
| YTD Return | 10.41% | 26.93% |
| 1Y Return | 23.40% | 40.38% |
| 3Y Return (Ann) | 7.30% | 14.08% |
| 5Y Return (Ann) | 13.23% | 11.76% |
| 10Y Return (Ann) | 9.51% | 7.72% |
| Sharpe Ratio | 1.56 | 2.97 |
| Sortino Ratio | 2.16 | 4.06 |
| Omega Ratio | 1.27 | 1.52 |
| Calmar Ratio | 1.47 | 4.12 |
| Martin Ratio | 7.70 | 19.57 |
| Ulcer Index | 3.06% | 2.20% |
| Daily Std Dev | 15.12% | 14.46% |
| Max Drawdown | -62.17% | -45.14% |
| Current Drawdown | -2.61% | -1.90% |
Correlation
The correlation between VAW and IAU is 0.19, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VAW vs. IAU - Performance Comparison
In the year-to-date period, VAW achieves a 10.41% return, which is significantly lower than IAU's 26.93% return. Over the past 10 years, VAW has outperformed IAU with an annualized return of 9.51%, while IAU has yielded a comparatively lower 7.72% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VAW vs. IAU - Expense Ratio Comparison
VAW has a 0.10% 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%.
Risk-Adjusted Performance
VAW vs. IAU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) 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.
Dividends
VAW vs. IAU - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.56%, while IAU has not paid dividends to shareholders.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.56% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
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% |
Drawdowns
VAW vs. IAU - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VAW and IAU. For additional features, visit the drawdowns tool.
Volatility
VAW vs. IAU - Volatility Comparison
Vanguard Materials ETF (VAW) and iShares Gold Trust (IAU) have volatilities of 3.94% and 3.76%, 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.