VGT vs. IAU
VGT (Vanguard Information Technology ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VGT returned 25.26%/yr vs 11.28%/yr for IAU. At a 0.05 correlation, their price movements are largely independent. VGT charges 0.09%/yr vs 0.25%/yr for IAU.
Performance
VGT vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, VGT achieves a 23.92% return, which is significantly higher than IAU's -6.95% return. Over the past 10 years, VGT has outperformed IAU with an annualized return of 25.26%, while IAU has yielded a comparatively lower 11.28% annualized return.
VGT
- 1D
- 2.32%
- 1M
- -3.65%
- YTD
- 23.92%
- 6M
- 22.41%
- 1Y
- 42.58%
- 3Y*
- 28.95%
- 5Y*
- 19.29%
- 10Y*
- 25.26%
IAU
- 1D
- -1.35%
- 1M
- -11.65%
- YTD
- -6.95%
- 6M
- -7.45%
- 1Y
- 22.51%
- 3Y*
- 27.56%
- 5Y*
- 17.51%
- 10Y*
- 11.28%
VGT vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGT Vanguard Information Technology ETF | 23.92% | 21.77% | 29.30% | 52.66% | -29.70% | 30.45% | 46.04% | 48.62% | 2.46% | 37.08% |
IAU iShares Gold Trust | -6.95% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between VGT and IAU is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2005 | 0.05 |
The correlation between VGT and IAU shifts across timeframes, from 0.05 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGT vs. IAU — Risk / Return Rank
VGT
IAU
VGT vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) 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.
| VGT | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.05 | ||
| Sortino ratioReturn per unit of downside risk | +1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.17 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.61 | 0.86 | +1.74 |
| Martin ratioReturn relative to average drawdown | 7.82 | 2.35 | +5.47 |
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Drawdowns
VGT vs. IAU - Drawdown Comparison
The maximum VGT drawdown since its inception was -54.63%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VGT and IAU.
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Drawdown Indicators
| VGT | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -54.63% | -45.14% | -9.49% |
Max Drawdown (1Y)Largest decline over 1 year | -16.40% | -26.17% | +9.77% |
Max Drawdown (3Y)Largest decline over 3 years | -27.23% | -26.17% | -1.06% |
Max Drawdown (5Y)Largest decline over 5 years | -35.07% | -26.17% | -8.90% |
Max Drawdown (10Y)Largest decline over 10 years | -35.07% | -26.17% | -8.90% |
Current DrawdownCurrent decline from peak | -7.26% | -25.64% | +18.38% |
Average DrawdownAverage peak-to-trough decline | -7.95% | -15.98% | +8.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.46% | 9.62% | -4.16% |
Volatility
VGT vs. IAU - Volatility Comparison
Vanguard Information Technology ETF (VGT) has a higher volatility of 11.41% compared to iShares Gold Trust (IAU) at 8.65%. This indicates that VGT'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.
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Volatility by Period
| VGT | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.41% | 8.65% | +2.76% |
Volatility (6M)Calculated over the trailing 6-month period | 18.69% | 24.35% | -5.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.84% | 27.56% | -4.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.58% | 18.25% | +7.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.75% | 16.02% | +8.73% |
VGT vs. IAU - Expense Ratio Comparison
VGT has a 0.09% 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
VGT vs. IAU - Dividend Comparison
VGT's dividend yield for the trailing twelve months is around 0.37%, 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% |
VGT Vanguard Information Technology ETF | 0.37% | 0.40% | 0.60% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% |
Frequently Asked Questions
VGT and IAU have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGT has higher volatility (11.41%) compared to IAU (8.65%). In terms of maximum drawdown, VGT dropped -54.63% vs IAU's -45.14%.
On 10-year performance, VGT leads with 25.26% vs 11.28% for IAU. On fees, VGT is cheaper at 0.09% per year. On volatility, IAU has been the lower-risk option at 8.65%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGT has performed better with a 25.26% return vs 11.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGT is cheaper with a 0.09% expense ratio, compared with 0.25% for IAU.
VGT has the higher dividend yield at 0.37%, compared with 0.00% for IAU.
VGT is categorized as Technology Equities, while IAU is Gold. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VGT and 0.25% for IAU.
VGT currently has the higher Sharpe Ratio (1.88 vs 0.82), 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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