VGCAX vs. IAU
VGCAX (Vanguard Global Credit Bond Fund Admiral Shares) and IAU (iShares Gold Trust) are both funds - VGCAX is a Total Bond Market fund managed by Vanguard, while IAU is a Gold fund tracking the LBMA Gold Price. Over the past 5 years, VGCAX returned 1.34%/yr vs 17.23%/yr for IAU. At a 0.33 correlation, their price movements are largely independent. Both charge a 0.25% expense ratio.
Performance
VGCAX vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, VGCAX achieves a 1.10% return, which is significantly higher than IAU's -2.44% return.
VGCAX
- 1D
- 0.52%
- 1M
- 0.68%
- YTD
- 1.10%
- 6M
- 1.56%
- 1Y
- 5.50%
- 3Y*
- 6.27%
- 5Y*
- 1.34%
- 10Y*
- —
IAU
- 1D
- 0.08%
- 1M
- -9.54%
- YTD
- -2.44%
- 6M
- -2.22%
- 1Y
- 22.32%
- 3Y*
- 29.07%
- 5Y*
- 17.23%
- 10Y*
- 12.31%
VGCAX vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VGCAX Vanguard Global Credit Bond Fund Admiral Shares | 1.10% | 7.30% | 3.99% | 9.22% | -13.43% | -0.64% | 10.81% | 13.05% | 0.96% |
IAU iShares Gold Trust | -2.44% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | 5.86% |
Correlation
The correlation between VGCAX and IAU is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.29 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.32 |
Correlation (All Time) Calculated using the full available price history since Nov 15, 2018 | 0.33 |
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Return for Risk
VGCAX vs. IAU — Risk / Return Rank
VGCAX
IAU
VGCAX vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Global Credit Bond Fund Admiral Shares (VGCAX) 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.
| VGCAX | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.77 | ||
| Sortino ratioReturn per unit of downside risk | +1.18 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.19 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.89 | 0.99 | +0.90 |
| Martin ratioReturn relative to average drawdown | 6.28 | 2.83 | +3.45 |
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Drawdowns
VGCAX vs. IAU - Drawdown Comparison
The maximum VGCAX drawdown since its inception was -18.63%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VGCAX and IAU.
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Drawdown Indicators
| VGCAX | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.63% | -45.14% | +26.51% |
Max Drawdown (1Y)Largest decline over 1 year | -2.90% | -24.40% | +21.50% |
Max Drawdown (3Y)Largest decline over 3 years | -4.00% | -24.40% | +20.40% |
Max Drawdown (5Y)Largest decline over 5 years | -18.63% | -24.40% | +5.77% |
Max Drawdown (10Y)Largest decline over 10 years | — | -24.40% | — |
Current DrawdownCurrent decline from peak | -0.64% | -22.03% | +21.39% |
Average DrawdownAverage peak-to-trough decline | -4.33% | -15.97% | +11.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.87% | 8.47% | -7.60% |
Volatility
VGCAX vs. IAU - Volatility Comparison
The current volatility for Vanguard Global Credit Bond Fund Admiral Shares (VGCAX) is 1.23%, while iShares Gold Trust (IAU) has a volatility of 7.70%. This indicates that VGCAX 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
| VGCAX | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.23% | 7.70% | -6.47% |
Volatility (6M)Calculated over the trailing 6-month period | 2.64% | 23.94% | -21.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.32% | 27.17% | -23.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.07% | 18.16% | -13.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.84% | 16.02% | -11.18% |
VGCAX vs. IAU - Expense Ratio Comparison
Both VGCAX and IAU have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGCAX vs. IAU - Dividend Comparison
VGCAX's dividend yield for the trailing twelve months is around 4.95%, while IAU has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
IAU iShares Gold Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VGCAX Vanguard Global Credit Bond Fund Admiral Shares | 4.95% | 4.91% | 4.65% | 4.48% | 2.72% | 3.16% | 4.65% | 6.88% | 0.36% |
Frequently Asked Questions
VGCAX and IAU have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (7.70%) compared to VGCAX (1.23%). In terms of maximum drawdown, VGCAX dropped -18.63% vs IAU's -45.14%.
VGCAX currently has the higher Sharpe Ratio (1.65 vs 0.89), 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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