VO vs. IAU
VO (Vanguard Mid-Cap ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VO returned 11.77%/yr vs 12.31%/yr for IAU. At a 0.09 correlation, their price movements are largely independent. VO charges 0.03%/yr vs 0.25%/yr for IAU.
Performance
VO vs. IAU - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VO achieves a 10.43% return, which is significantly higher than IAU's -2.44% return. Both investments have delivered pretty close results over the past 10 years, with VO having a 11.77% annualized return and IAU not far ahead at 12.31%.
VO
- 1D
- 0.97%
- 1M
- 2.97%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 19.60%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
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%
VO vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
IAU iShares Gold Trust | -2.44% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between VO and IAU is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2005 | 0.09 |
The correlation between VO and IAU shifts across timeframes, from 0.08 (10 years) to 0.24 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VO vs. IAU — Risk / Return Rank
VO
IAU
VO vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.55 | ||
| Sortino ratioReturn per unit of downside risk | +0.81 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.19 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 0.99 | +1.25 |
| Martin ratioReturn relative to average drawdown | 8.44 | 2.83 | +5.60 |
Loading charts...
Drawdowns
VO vs. IAU - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VO and IAU.
Loading charts...
Drawdown Indicators
| VO | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -45.14% | -13.73% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -24.40% | +16.23% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -24.40% | +5.38% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -24.40% | -3.17% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | -24.40% | -14.97% |
Current DrawdownCurrent decline from peak | -0.45% | -22.03% | +21.58% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -15.97% | +8.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.16% | 8.47% | -6.31% |
Volatility
VO vs. IAU - Volatility Comparison
The current volatility for Vanguard Mid-Cap ETF (VO) is 4.31%, while iShares Gold Trust (IAU) has a volatility of 7.70%. This indicates that VO 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.
Loading charts...
Volatility by Period
| VO | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 7.70% | -3.39% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 23.94% | -14.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.74% | 27.17% | -14.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.65% | 18.16% | -0.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 16.02% | +2.94% |
VO vs. IAU - Expense Ratio Comparison
VO has a 0.03% 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
VO vs. IAU - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.36%, 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% |
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
Frequently Asked Questions
VO and IAU have a correlation of 0.24, 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 VO (4.31%). In terms of maximum drawdown, VO dropped -58.87% vs IAU's -45.14%.
On 10-year performance, IAU leads with 12.31% vs 11.77% for VO. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IAU has performed better with a 12.31% return vs 11.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO is cheaper with a 0.03% expense ratio, compared with 0.25% for IAU.
VO has the higher dividend yield at 1.36%, compared with 0.00% for IAU.
VO is categorized as Mid Cap Blend Equities, while IAU is Gold. VO tracks CRSP US Mid Cap Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VO and 0.25% for IAU.
VO currently has the higher Sharpe Ratio (1.43 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.
Find the right allocation for VO and IAU
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer