VSS vs. IAU
VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VSS returned 8.49%/yr vs 12.31%/yr for IAU. At a 0.27 correlation, their price movements are largely independent. VSS charges 0.07%/yr vs 0.25%/yr for IAU.
Performance
VSS vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, VSS achieves a 10.04% return, which is significantly higher than IAU's -2.44% return. Over the past 10 years, VSS has underperformed IAU with an annualized return of 8.49%, while IAU has yielded a comparatively higher 12.31% annualized return.
VSS
- 1D
- 0.50%
- 1M
- -2.16%
- YTD
- 10.04%
- 6M
- 12.05%
- 1Y
- 24.95%
- 3Y*
- 15.73%
- 5Y*
- 5.58%
- 10Y*
- 8.49%
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%
VSS vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 10.04% | 29.61% | 2.94% | 15.52% | -21.48% | 13.05% | 11.81% | 21.36% | -18.48% | 30.61% |
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 VSS and IAU is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.29 |
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009 | 0.27 |
Over the past year, VSS and IAU have become more correlated (0.47) than their long-term average of 0.27, meaning their price movements have been converging.
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Return for Risk
VSS vs. IAU — Risk / Return Rank
VSS
IAU
VSS vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 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.
| VSS | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.62 | ||
| Sortino ratioReturn per unit of downside risk | +0.85 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.19 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.03 | 0.99 | +1.04 |
| Martin ratioReturn relative to average drawdown | 7.61 | 2.83 | +4.78 |
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Drawdowns
VSS vs. IAU - Drawdown Comparison
The maximum VSS drawdown since its inception was -43.51%, roughly equal to the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VSS and IAU.
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Drawdown Indicators
| VSS | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.51% | -45.14% | +1.63% |
Max Drawdown (1Y)Largest decline over 1 year | -11.62% | -24.40% | +12.78% |
Max Drawdown (3Y)Largest decline over 3 years | -15.73% | -24.40% | +8.67% |
Max Drawdown (5Y)Largest decline over 5 years | -33.93% | -24.40% | -9.53% |
Max Drawdown (10Y)Largest decline over 10 years | -43.51% | -24.40% | -19.11% |
Current DrawdownCurrent decline from peak | -3.05% | -22.03% | +18.98% |
Average DrawdownAverage peak-to-trough decline | -9.63% | -15.97% | +6.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.09% | 8.47% | -5.38% |
Volatility
VSS vs. IAU - Volatility Comparison
The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 6.52%, while iShares Gold Trust (IAU) has a volatility of 7.70%. This indicates that VSS 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.
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Volatility by Period
| VSS | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.52% | 7.70% | -1.18% |
Volatility (6M)Calculated over the trailing 6-month period | 13.55% | 23.94% | -10.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.60% | 27.17% | -11.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.59% | 18.16% | -1.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.30% | 16.02% | +1.28% |
VSS vs. IAU - Expense Ratio Comparison
VSS has a 0.07% 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
VSS vs. IAU - Dividend Comparison
VSS's dividend yield for the trailing twelve months is around 3.08%, 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% |
VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 3.08% | 3.39% | 3.44% | 3.14% | 2.30% | 2.74% | 1.90% | 3.25% | 2.80% | 2.83% | 2.93% | 2.66% |
Frequently Asked Questions
VSS and IAU have a correlation of 0.47, 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 VSS (6.52%). In terms of maximum drawdown, VSS dropped -43.51% vs IAU's -45.14%.
On 10-year performance, IAU leads with 12.31% vs 8.49% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, VSS has been the lower-risk option at 6.52%. 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 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VSS is cheaper with a 0.07% expense ratio, compared with 0.25% for IAU.
VSS has the higher dividend yield at 3.08%, compared with 0.00% for IAU.
VSS is categorized as Foreign Small & Mid Cap Equities, while IAU is Gold. VSS tracks FTSE Global Small Cap ex US Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VSS and 0.25% for IAU.
VSS currently has the higher Sharpe Ratio (1.51 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.
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