VGK vs. IAU

Last updated Jun 4, 2026

VGK (Vanguard FTSE Europe ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VGK returned 9.26%/yr vs 13.31%/yr for IAU. At a 0.20 correlation, their price movements are largely independent. VGK charges 0.06%/yr vs 0.25%/yr for IAU.

Performance

VGK vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) 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, VGK achieves a 5.62% return, which is significantly higher than IAU's 2.98% return. Over the past 10 years, VGK has underperformed IAU with an annualized return of 9.26%, while IAU has yielded a comparatively higher 13.31% annualized return.

VGK

• 1D: -1.19%
• 1M: 2.79%
• YTD: 5.62%
• 6M: 8.66%
• 1Y: 18.01%
• 3Y*: 16.32%
• 5Y*: 8.24%
• 10Y*: 9.26%

IAU

• 1D: -0.98%
• 1M: -1.62%
• YTD: 2.98%
• 6M: 5.50%
• 1Y: 32.20%
• 3Y*: 31.29%
• 5Y*: 18.32%
• 10Y*: 13.31%

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

VGK vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	5.62%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
IAU iShares Gold Trust	2.98%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between VGK and IAU is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.21
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.20

The correlation between VGK and IAU shifts across timeframes, from 0.20 (all time) to 0.35 (1 year), reflecting how their relationship changes across market environments.

VGK vs. IAU - Sectors Allocation Comparison

Sectors	VGK	IAU
Financial Services	23.9%	-
Industrials	19.5%	-
Healthcare	12.1%	-
Consumer Defensive	8.5%	-
Technology	8.3%	-
Consumer Cyclical	6.8%	-
Basic Materials	5.4%	-
Energy	5.3%	-
Utilities	4.8%	-
Communication Services	3.3%	-
Real Estate	1.5%	100.0%

Return for Risk

VGK vs. IAU — Risk / Return Rank

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

VGK

VGK Risk / Return Rank: 31
VGK Sharpe Ratio Rank: 31
VGK Sortino Ratio Rank: 31
VGK Omega Ratio Rank: 30
VGK Calmar Ratio Rank: 30
VGK Martin Ratio Rank: 35

IAU

IAU Risk / Return Rank: 32
IAU Sharpe Ratio Rank: 33
IAU Sortino Ratio Rank: 29
IAU Omega Ratio Rank: 36
IAU Calmar Ratio Rank: 33
IAU Martin Ratio Rank: 29

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.

VGK vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) 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.

	VGK	IAU	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.23	-0.05
Sortino ratio: Return per unit of downside risk	1.72	1.62	+0.10
Omega ratio: Gain probability vs. loss probability	1.21	1.24	-0.03
Calmar ratio: Return relative to maximum drawdown	1.50	1.69	-0.19
Martin ratio: Return relative to average drawdown	5.56	4.19	+1.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGK vs. IAU - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.18, which is comparable to the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of VGK 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

	VGK	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.18	1.23	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	1.03	-0.56
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.84	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.62	-0.35

Drawdowns

VGK vs. IAU - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VGK and IAU.

Drawdown Indicators

	VGK	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-45.14%	-18.47%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-19.18%	+7.09%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-19.18%	+4.87%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-20.93%	-11.81%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-21.82%	-15.42%
Current Drawdown Current decline from peak	-2.41%	-17.70%	+15.29%
Average Drawdown Average peak-to-trough decline	-13.34%	-15.96%	+2.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	7.71%	-4.46%

Volatility

VGK vs. IAU - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) and iShares Gold Trust (IAU) have volatilities of 5.73% and 5.50%, 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.

Volatility by Period

	VGK	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	5.50%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	12.78%	23.02%	-10.24%
Volatility (1Y) Calculated over the trailing 1-year period	15.40%	26.42%	-11.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.90%	17.95%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.96%	15.90%	+3.06%

VGK vs. IAU - Expense Ratio Comparison

VGK has a 0.06% 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%.

Dividends

VGK vs. IAU - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.82%, 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%
VGK Vanguard FTSE Europe ETF	2.82%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%

Frequently Asked Questions

Can I hold both VGK and IAU in my portfolio?

VGK and IAU have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGK or IAU?

VGK has higher volatility (5.73%) compared to IAU (5.50%). In terms of maximum drawdown, VGK dropped -63.61% vs IAU's -45.14%.

Which ETF is better, VGK or IAU?

On 10-year performance, IAU leads with 13.31% vs 9.26% for VGK. On fees, VGK is cheaper at 0.06% per year. On volatility, IAU has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or IAU?

Over the 10-year period, IAU has performed better with a 13.31% return vs 9.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or IAU?

VGK is cheaper with a 0.06% expense ratio, compared with 0.25% for IAU.

Which ETF pays a higher dividend yield, VGK or IAU?

VGK has the higher dividend yield at 2.82%, compared with 0.00% for IAU.

What is the main difference between VGK and IAU?

VGK is categorized as Europe Equities, while IAU is Gold. VGK tracks FTSE Developed Europe All Cap Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VGK and 0.25% for IAU.

Which has better risk-adjusted returns?

IAU currently has the higher Sharpe Ratio (1.23 vs 1.18), 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.