VUG vs. IAU
VUG (Vanguard Growth ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VUG returned 17.16%/yr vs 11.47%/yr for IAU. Their 0.07 correlation means their historical movements had little consistent relationship. VUG charges 0.03%/yr vs 0.25%/yr for IAU.
Performance
VUG vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, VUG achieves a 3.87% return, which is significantly higher than IAU's -4.77% return. Over the past 10 years, VUG has outperformed IAU with an annualized return of 17.16%, while IAU has yielded a comparatively lower 11.47% annualized return.
VUG
- 1D
- 2.68%
- 1M
- -2.17%
- 6M
- 4.45%
- YTD
- 3.87%
- 1Y
- 11.65%
- 3Y*
- 20.62%
- 5Y*
- 11.92%
- 10Y*
- 17.16%
- ALL TIME*
- 12.03%
IAU
- 1D
- 1.66%
- 1M
- 2.37%
- 6M
- -23.89%
- YTD
- -4.77%
- 1Y
- 25.45%
- 3Y*
- 27.61%
- 5Y*
- 17.47%
- 10Y*
- 11.47%
- ALL TIME*
- 10.79%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $356.82M | $368.90M | $473.90M | |
| $577.14M | $666.77M | $652.71M |
VUG vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VUG Vanguard Growth ETF | 3.87% | 19.40% | 32.69% | 46.83% | -33.16% | 27.35% | 40.25% | 37.03% | -3.32% | 27.72% |
IAU iShares Gold Trust | -4.77% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between VUG and IAU is 0.27, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.27 |
Correlation (3Y) Balances recent behavior with more history. | 0.13 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.10 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.08 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2005 | 0.07 |
Over the past year, VUG and IAU have become more correlated (0.27) than their long-term average of 0.07, meaning their price movements have been converging.
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Return for Risk
VUG vs. IAU — Risk / Return Rank
VUG
IAU
VUG vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.
| VUG | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.26 | ||
| Sortino ratioReturn per unit of downside risk | -0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.19 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.71 | 0.97 | -0.26 |
| Martin ratioReturn relative to average drawdown | 2.25 | 2.12 | +0.13 |
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Drawdowns
VUG vs. IAU - Drawdown Comparison
The maximum VUG drawdown since its inception was -50.68%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VUG and IAU.
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Drawdown Indicators
| VUG | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.68% | -45.14% | -5.54% |
Max Drawdown (1Y)Largest decline over 1 year | -16.53% | -26.36% | +9.83% |
Max Drawdown (3Y)Largest decline over 3 years | -22.85% | -26.36% | +3.51% |
Max Drawdown (5Y)Largest decline over 5 years | -35.61% | -26.36% | -9.25% |
Max Drawdown (10Y)Largest decline over 10 years | -35.61% | -26.36% | -9.25% |
Current DrawdownCurrent decline from peak | -6.56% | -23.89% | +17.33% |
Average DrawdownAverage peak-to-trough decline | -7.08% | -16.02% | +8.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.19% | 12.05% | -6.86% |
Volatility
VUG vs. IAU - Volatility Comparison
The current volatility for Vanguard Growth ETF (VUG) is 5.45%, while iShares Gold Trust (IAU) has a volatility of 6.18%. This indicates that VUG 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
| VUG | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.45% | 6.18% | -0.73% |
Volatility (6M)Calculated over the trailing 6-month period | 14.23% | 23.32% | -9.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.71% | 27.94% | -10.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.50% | 18.42% | +4.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.55% | 16.07% | +5.48% |
VUG vs. IAU - Expense Ratio Comparison
VUG 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
VUG vs. IAU - Dividend Comparison
VUG's dividend yield for the trailing twelve months is around 0.40%, 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% |
VUG Vanguard Growth ETF | 0.40% | 0.41% | 0.47% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% |
Frequently Asked Questions
VUG and IAU have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (6.18%) compared to VUG (5.45%). In terms of maximum drawdown, VUG dropped -50.68% vs IAU's -45.14%.
On 10-year performance, VUG leads with 17.16% vs 11.47% for IAU. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 5.45%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VUG has performed better with a 17.16% return vs 11.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VUG is cheaper with a 0.03% expense ratio, compared with 0.25% for IAU.
VUG has the higher dividend yield at 0.40%, compared with 0.00% for IAU.
VUG is categorized as Large Cap Growth Equities, while IAU is Gold. VUG tracks CRSP US Large Cap Growth Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VUG and 0.25% for IAU.
IAU currently has the higher Sharpe Ratio (0.92 vs 0.66), 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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