VLUE vs. IAU

Last updated Jun 4, 2026

VLUE (iShares Edge MSCI USA Value Factor ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VLUE is a Large Cap Value Equities fund tracking the MSCI USA Value Weighted Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VLUE returned 15.43%/yr vs 13.31%/yr for IAU. At a 0.01 correlation, their price movements are largely independent. VLUE charges 0.15%/yr vs 0.25%/yr for IAU.

Performance

VLUE vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Edge MSCI USA Value Factor ETF (VLUE) 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, VLUE achieves a 49.00% return, which is significantly higher than IAU's 2.98% return. Over the past 10 years, VLUE has outperformed IAU with an annualized return of 15.43%, while IAU has yielded a comparatively lower 13.31% annualized return.

VLUE

• 1D: -0.42%
• 1M: 20.77%
• YTD: 49.00%
• 6M: 51.40%
• 1Y: 91.45%
• 3Y*: 34.26%
• 5Y*: 16.36%
• 10Y*: 15.43%

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)

VLUE vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLUE iShares Edge MSCI USA Value Factor ETF	49.00%	32.67%	7.25%	14.26%	-14.17%	28.93%	-0.23%	27.20%	-11.13%	21.95%
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 VLUE and IAU is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since Apr 19, 2013	0.01

The correlation between VLUE and IAU shifts across timeframes, from 0.01 (all time) to 0.16 (1 year), reflecting how their relationship changes across market environments.

VLUE vs. IAU - Sectors Allocation Comparison

Sectors	VLUE	IAU
Technology	44.5%	-
Financial Services	10.4%	-
Healthcare	8.5%	-
Communication Services	8.3%	-
Consumer Cyclical	8.3%	-
Industrials	7.4%	-
Consumer Defensive	4.0%	-
Energy	3.2%	-
Utilities	2.0%	-
Real Estate	1.8%	100.0%
Basic Materials	1.6%	-

Return for Risk

VLUE vs. IAU — Risk / Return Rank

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

VLUE

VLUE Risk / Return Rank: 97
VLUE Sharpe Ratio Rank: 98
VLUE Sortino Ratio Rank: 98
VLUE Omega Ratio Rank: 97
VLUE Calmar Ratio Rank: 96
VLUE Martin Ratio Rank: 97

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.

VLUE vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI USA Value Factor ETF (VLUE) 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.

	VLUE	IAU	Difference
Sharpe ratio: Return per unit of total volatility	5.32	1.23	+4.10
Sortino ratio: Return per unit of downside risk	6.86	1.62	+5.24
Omega ratio: Gain probability vs. loss probability	1.91	1.24	+0.66
Calmar ratio: Return relative to maximum drawdown	10.17	1.69	+8.49
Martin ratio: Return relative to average drawdown	45.62	4.19	+41.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VLUE vs. IAU - Sharpe Ratio Comparison

The current VLUE Sharpe Ratio is 5.32, which is higher than the IAU Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of VLUE 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

	VLUE	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.32	1.23	+4.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	1.03	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.84	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.62	+0.14

Drawdowns

VLUE vs. IAU - Drawdown Comparison

The maximum VLUE drawdown since its inception was -39.47%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VLUE and IAU.

Drawdown Indicators

	VLUE	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-39.47%	-45.14%	+5.67%
Max Drawdown (1Y) Largest decline over 1 year	-9.04%	-19.18%	+10.14%
Max Drawdown (3Y) Largest decline over 3 years	-17.89%	-19.18%	+1.29%
Max Drawdown (5Y) Largest decline over 5 years	-27.12%	-20.93%	-6.19%
Max Drawdown (10Y) Largest decline over 10 years	-39.47%	-21.82%	-17.65%
Current Drawdown Current decline from peak	-0.42%	-17.70%	+17.28%
Average Drawdown Average peak-to-trough decline	-6.01%	-15.96%	+9.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	7.71%	-5.70%

Volatility

VLUE vs. IAU - Volatility Comparison

iShares Edge MSCI USA Value Factor ETF (VLUE) has a higher volatility of 8.03% compared to iShares Gold Trust (IAU) at 5.50%. This indicates that VLUE'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.

Volatility by Period

	VLUE	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.03%	5.50%	+2.53%
Volatility (6M) Calculated over the trailing 6-month period	13.96%	23.02%	-9.06%
Volatility (1Y) Calculated over the trailing 1-year period	17.30%	26.42%	-9.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.78%	17.95%	-0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.82%	15.90%	+3.92%

VLUE vs. IAU - Expense Ratio Comparison

VLUE has a 0.15% 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

VLUE vs. IAU - Dividend Comparison

VLUE's dividend yield for the trailing twelve months is around 1.40%, 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%
VLUE iShares Edge MSCI USA Value Factor ETF	1.40%	2.11%	2.73%	2.66%	3.18%	2.22%	2.42%	2.61%	2.70%	2.14%	2.07%	2.39%

Frequently Asked Questions

Can I hold both VLUE and IAU in my portfolio?

VLUE and IAU have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VLUE or IAU?

VLUE has higher volatility (8.03%) compared to IAU (5.50%). In terms of maximum drawdown, VLUE dropped -39.47% vs IAU's -45.14%.

Which ETF is better, VLUE or IAU?

On 10-year performance, VLUE leads with 15.43% vs 13.31% for IAU. On fees, VLUE is cheaper at 0.15% 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, VLUE or IAU?

Over the 10-year period, VLUE has performed better with a 15.43% return vs 13.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLUE or IAU?

VLUE is cheaper with a 0.15% expense ratio, compared with 0.25% for IAU.

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

VLUE has the higher dividend yield at 1.40%, compared with 0.00% for IAU.

What is the main difference between VLUE and IAU?

VLUE is categorized as Large Cap Value Equities, while IAU is Gold. VLUE tracks MSCI USA Value Weighted Index, while IAU tracks LBMA Gold Price. Their fees differ too: 0.15% for VLUE and 0.25% for IAU.

Which has better risk-adjusted returns?

VLUE currently has the higher Sharpe Ratio (5.32 vs 1.23), 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.