VTV vs. IAU

Last updated Jun 9, 2026

VTV (Vanguard Value ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VTV is a Large Cap Value Equities fund tracking the CRSP US Large Cap Value Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VTV returned 12.42%/yr vs 12.71%/yr for IAU. At a 0.07 correlation, their price movements are largely independent. VTV charges 0.04%/yr vs 0.25%/yr for IAU.

Performance

VTV vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Value ETF (VTV) 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, VTV achieves a 11.91% return, which is significantly higher than IAU's 0.26% return. Both investments have delivered pretty close results over the past 10 years, with VTV having a 12.42% annualized return and IAU not far ahead at 12.71%.

VTV

• 1D: 0.25%
• 1M: 2.67%
• YTD: 11.91%
• 6M: 13.41%
• 1Y: 25.49%
• 3Y*: 17.72%
• 5Y*: 11.30%
• 10Y*: 12.42%

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)

VTV vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTV Vanguard Value ETF	11.91%	15.27%	15.95%	9.32%	-2.09%	26.53%	2.33%	25.66%	-5.47%	17.15%
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 VTV and IAU is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (10Y) Calculated over the trailing 10-year period	0.05
Correlation (All Time) Calculated using the full available price history since Jan 28, 2005	0.07

The correlation between VTV and IAU shifts across timeframes, from 0.05 (10 years) to 0.22 (1 year), reflecting how their relationship changes across market environments.

VTV vs. IAU - Sectors Allocation Comparison

Sectors	VTV	IAU
Financial Services	22.3%	-
Healthcare	14.5%	-
Industrials	14.0%	-
Technology	13.4%	-
Consumer Defensive	9.4%	-
Energy	8.1%	-
Utilities	5.2%	-
Consumer Cyclical	4.0%	-
Communication Services	3.3%	-
Basic Materials	3.1%	-
Real Estate	2.8%	100.0%

Return for Risk

VTV vs. IAU — Risk / Return Rank

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

VTV

VTV Risk / Return Rank: 84
VTV Sharpe Ratio Rank: 85
VTV Sortino Ratio Rank: 87
VTV Omega Ratio Rank: 83
VTV Calmar Ratio Rank: 83
VTV Martin Ratio Rank: 83

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.

VTV vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Value ETF (VTV) 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.

	VTV	IAU	Difference
Sharpe ratio: Return per unit of total volatility	2.52	1.14	+1.38
Sortino ratio: Return per unit of downside risk	3.58	1.52	+2.05
Omega ratio: Gain probability vs. loss probability	1.45	1.23	+0.22
Calmar ratio: Return relative to maximum drawdown	4.03	1.52	+2.51
Martin ratio: Return relative to average drawdown	15.20	3.80	+11.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTV vs. IAU - Sharpe Ratio Comparison

The current VTV Sharpe Ratio is 2.52, which is higher than the IAU Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VTV 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

	VTV	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.52	1.14	+1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.82	0.99	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.80	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.61	-0.10

Drawdowns

VTV vs. IAU - Drawdown Comparison

The maximum VTV drawdown since its inception was -59.27%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VTV and IAU.

Drawdown Indicators

	VTV	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-59.27%	-45.14%	-14.13%
Max Drawdown (1Y) Largest decline over 1 year	-6.35%	-20.04%	+13.69%
Max Drawdown (3Y) Largest decline over 3 years	-14.52%	-20.04%	+5.52%
Max Drawdown (5Y) Largest decline over 5 years	-17.04%	-20.93%	+3.89%
Max Drawdown (10Y) Largest decline over 10 years	-36.78%	-21.82%	-14.96%
Current Drawdown Current decline from peak	-1.11%	-19.88%	+18.77%
Average Drawdown Average peak-to-trough decline	-7.87%	-15.97%	+8.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.68%	7.99%	-6.31%

Volatility

VTV vs. IAU - Volatility Comparison

The current volatility for Vanguard Value ETF (VTV) is 2.65%, while iShares Gold Trust (IAU) has a volatility of 5.64%. This indicates that VTV 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

	VTV	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	5.64%	-2.99%
Volatility (6M) Calculated over the trailing 6-month period	7.67%	23.33%	-15.66%
Volatility (1Y) Calculated over the trailing 1-year period	10.18%	26.68%	-16.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.89%	18.02%	-4.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.68%	15.94%	+0.74%

VTV vs. IAU - Expense Ratio Comparison

VTV 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

VTV vs. IAU - Dividend Comparison

VTV's dividend yield for the trailing twelve months is around 1.87%, 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%
VTV Vanguard Value ETF	1.87%	2.05%	2.31%	2.46%	2.52%	2.15%	2.56%	2.50%	2.73%	2.29%	2.44%	2.60%

Frequently Asked Questions

Can I hold both VTV and IAU in my portfolio?

VTV and IAU have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTV or IAU?

IAU has higher volatility (5.64%) compared to VTV (2.65%). In terms of maximum drawdown, VTV dropped -59.27% vs IAU's -45.14%.

Which ETF is better, VTV or IAU?

On 10-year performance, IAU leads with 12.71% vs 12.42% for VTV. On fees, VTV is cheaper at 0.04% per year. On volatility, VTV has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTV or IAU?

Over the 10-year period, IAU has performed better with a 12.71% return vs 12.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTV or IAU?

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

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

VTV has the higher dividend yield at 1.87%, compared with 0.00% for IAU.

What is the main difference between VTV and IAU?

VTV is categorized as Large Cap Value Equities, while IAU is Gold. VTV tracks CRSP US Large Cap Value Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VTV and 0.25% for IAU.

Which has better risk-adjusted returns?

VTV currently has the higher Sharpe Ratio (2.52 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.