VIG vs. IAU

Last updated Jun 9, 2026

VIG (Vanguard Dividend Appreciation ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VIG returned 13.05%/yr vs 12.71%/yr for IAU. At a 0.05 correlation, their price movements are largely independent. VIG charges 0.04%/yr vs 0.25%/yr for IAU.

Performance

VIG vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation ETF (VIG) 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, VIG achieves a 6.58% return, which is significantly higher than IAU's 0.26% return. Both investments have delivered pretty close results over the past 10 years, with VIG having a 13.05% annualized return and IAU not far behind at 12.71%.

VIG

• 1D: 0.03%
• 1M: 2.32%
• YTD: 6.58%
• 6M: 6.47%
• 1Y: 18.31%
• 3Y*: 16.04%
• 5Y*: 10.62%
• 10Y*: 13.05%

IAU

• 1D: 0.20%
• 1M: -8.43%
• YTD: 0.26%
• 6M: 3.08%
• 1Y: 30.27%
• 3Y*: 29.88%
• 5Y*: 17.71%
• 10Y*: 12.71%

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

VIG vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	6.58%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
IAU iShares Gold Trust	0.26%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between VIG and IAU is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Apr 28, 2006	0.05

The correlation between VIG and IAU shifts across timeframes, from 0.05 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.

VIG vs. IAU - Sectors Allocation Comparison

Sectors	VIG	IAU
Technology	26.2%	-
Financial Services	20.6%	-
Healthcare	16.5%	-
Industrials	11.8%	-
Consumer Defensive	10.1%	-
Consumer Cyclical	4.7%	-
Energy	3.5%	-
Basic Materials	3.5%	-
Utilities	3.2%	-
Communication Services	0.5%	-
Real Estate	-	100.0%

Return for Risk

VIG vs. IAU — Risk / Return Rank

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

VIG

VIG Risk / Return Rank: 58
VIG Sharpe Ratio Rank: 60
VIG Sortino Ratio Rank: 64
VIG Omega Ratio Rank: 58
VIG Calmar Ratio Rank: 52
VIG Martin Ratio Rank: 58

IAU

IAU Risk / Return Rank: 33
IAU Sharpe Ratio Rank: 35
IAU Sortino Ratio Rank: 31
IAU Omega Ratio Rank: 38
IAU Calmar Ratio Rank: 34
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.

VIG vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) 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.

	VIG	IAU	Difference
Sharpe ratio: Return per unit of total volatility	1.82	1.14	+0.68
Sortino ratio: Return per unit of downside risk	2.65	1.52	+1.13
Omega ratio: Gain probability vs. loss probability	1.33	1.23	+0.09
Calmar ratio: Return relative to maximum drawdown	2.33	1.52	+0.81
Martin ratio: Return relative to average drawdown	9.37	3.80	+5.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIG vs. IAU - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.82, which is higher than the IAU Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VIG 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

	VIG	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	1.14	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.99	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	0.80	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.61	-0.02

Drawdowns

VIG vs. IAU - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, roughly equal to the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VIG and IAU.

Drawdown Indicators

	VIG	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-45.14%	-1.67%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-20.04%	+12.13%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-20.04%	+5.09%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-20.93%	+0.54%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-21.82%	-9.90%
Current Drawdown Current decline from peak	-1.34%	-19.88%	+18.54%
Average Drawdown Average peak-to-trough decline	-5.51%	-15.97%	+10.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	7.99%	-6.03%

Volatility

VIG vs. IAU - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.42%, while iShares Gold Trust (IAU) has a volatility of 5.64%. This indicates that VIG 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.

Volatility by Period

	VIG	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.42%	5.64%	-3.22%
Volatility (6M) Calculated over the trailing 6-month period	7.68%	23.33%	-15.65%
Volatility (1Y) Calculated over the trailing 1-year period	10.10%	26.68%	-16.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.24%	18.02%	-3.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	15.94%	+0.12%

VIG vs. IAU - Expense Ratio Comparison

VIG has a 0.04% 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

VIG vs. IAU - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.48%, 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%
VIG Vanguard Dividend Appreciation ETF	1.48%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%

Frequently Asked Questions

Can I hold both VIG and IAU in my portfolio?

VIG and IAU have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIG or IAU?

IAU has higher volatility (5.64%) compared to VIG (2.42%). In terms of maximum drawdown, VIG dropped -46.81% vs IAU's -45.14%.

Which ETF is better, VIG or IAU?

On 10-year performance, VIG leads with 13.05% vs 12.71% for IAU. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or IAU?

Over the 10-year period, VIG has performed better with a 13.05% return vs 12.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or IAU?

VIG is cheaper with a 0.04% expense ratio, compared with 0.25% for IAU.

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

VIG has the higher dividend yield at 1.48%, compared with 0.00% for IAU.

What is the main difference between VIG and IAU?

VIG is categorized as Dividend, while IAU is Gold. VIG tracks S&P U.S. Dividend Growers Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VIG and 0.25% for IAU.

Which has better risk-adjusted returns?

VIG currently has the higher Sharpe Ratio (1.82 vs 1.14), 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.