VXF vs. IAU

Last updated Jun 9, 2026

VXF (Vanguard Extended Market ETF) and IAU (iShares Gold Trust) are both exchange-traded funds - VXF is a Mid Cap Blend Equities fund tracking the S&P Completion Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, VXF returned 11.95%/yr vs 12.71%/yr for IAU. At a 0.09 correlation, their price movements are largely independent. VXF charges 0.05%/yr vs 0.25%/yr for IAU.

Performance

VXF vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Extended Market ETF (VXF) 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, VXF achieves a 12.01% return, which is significantly higher than IAU's 0.26% return. Over the past 10 years, VXF has underperformed IAU with an annualized return of 11.95%, while IAU has yielded a comparatively higher 12.71% annualized return.

VXF

• 1D: 0.69%
• 1M: 1.74%
• YTD: 12.01%
• 6M: 10.46%
• 1Y: 25.27%
• 3Y*: 18.65%
• 5Y*: 5.93%
• 10Y*: 11.95%

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)

VXF vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXF Vanguard Extended Market ETF	12.01%	11.40%	16.89%	25.51%	-26.52%	12.31%	32.45%	27.96%	-9.34%	18.06%
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 VXF and IAU is 0.21, 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	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.07
Correlation (All Time) Calculated using the full available price history since Jan 28, 2005	0.09

The correlation between VXF and IAU shifts across timeframes, from 0.07 (10 years) to 0.21 (1 year), reflecting how their relationship changes across market environments.

VXF vs. IAU - Sectors Allocation Comparison

Sectors	VXF	IAU
Technology	19.8%	-
Industrials	19.3%	-
Financial Services	14.6%	-
Healthcare	13.3%	-
Consumer Cyclical	9.7%	-
Real Estate	6.0%	100.0%
Energy	5.1%	-
Basic Materials	4.2%	-
Communication Services	3.3%	-
Consumer Defensive	2.7%	-
Utilities	2.0%	-

Return for Risk

VXF vs. IAU — Risk / Return Rank

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

VXF

VXF Risk / Return Rank: 49
VXF Sharpe Ratio Rank: 46
VXF Sortino Ratio Rank: 46
VXF Omega Ratio Rank: 43
VXF Calmar Ratio Rank: 55
VXF Martin Ratio Rank: 56

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.

VXF vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Extended Market ETF (VXF) 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.

	VXF	IAU	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.14	+0.31
Sortino ratio: Return per unit of downside risk	2.04	1.52	+0.52
Omega ratio: Gain probability vs. loss probability	1.25	1.23	+0.02
Calmar ratio: Return relative to maximum drawdown	2.49	1.52	+0.97
Martin ratio: Return relative to average drawdown	8.77	3.80	+4.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VXF vs. IAU - Sharpe Ratio Comparison

The current VXF Sharpe Ratio is 1.45, which is comparable to the IAU Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VXF 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

	VXF	IAU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.45	1.14	+0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.99	-0.72
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.80	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.61	-0.16

Drawdowns

VXF vs. IAU - Drawdown Comparison

The maximum VXF drawdown since its inception was -58.03%, which is greater than IAU's maximum drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for VXF and IAU.

Drawdown Indicators

	VXF	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-58.03%	-45.14%	-12.89%
Max Drawdown (1Y) Largest decline over 1 year	-10.21%	-20.04%	+9.83%
Max Drawdown (3Y) Largest decline over 3 years	-26.92%	-20.04%	-6.88%
Max Drawdown (5Y) Largest decline over 5 years	-36.39%	-20.93%	-15.46%
Max Drawdown (10Y) Largest decline over 10 years	-41.72%	-21.82%	-19.90%
Current Drawdown Current decline from peak	-2.66%	-19.88%	+17.22%
Average Drawdown Average peak-to-trough decline	-9.55%	-15.97%	+6.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	7.99%	-5.10%

Volatility

VXF vs. IAU - Volatility Comparison

Vanguard Extended Market ETF (VXF) and iShares Gold Trust (IAU) have volatilities of 5.70% and 5.64%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VXF	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.70%	5.64%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	12.90%	23.33%	-10.43%
Volatility (1Y) Calculated over the trailing 1-year period	17.55%	26.68%	-9.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.38%	18.02%	+4.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.32%	15.94%	+6.38%

VXF vs. IAU - Expense Ratio Comparison

VXF has a 0.05% 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

VXF vs. IAU - Dividend Comparison

VXF's dividend yield for the trailing twelve months is around 1.04%, 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%
VXF Vanguard Extended Market ETF	1.04%	1.14%	1.09%	1.27%	1.15%	1.13%	1.07%	1.30%	1.66%	1.25%	1.43%	1.35%

Frequently Asked Questions

Can I hold both VXF and IAU in my portfolio?

VXF and IAU have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VXF or IAU?

VXF has higher volatility (5.70%) compared to IAU (5.64%). In terms of maximum drawdown, VXF dropped -58.03% vs IAU's -45.14%.

Which ETF is better, VXF or IAU?

On 10-year performance, IAU leads with 12.71% vs 11.95% for VXF. On fees, VXF is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VXF or IAU?

Over the 10-year period, IAU has performed better with a 12.71% return vs 11.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VXF or IAU?

VXF is cheaper with a 0.05% expense ratio, compared with 0.25% for IAU.

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

VXF has the higher dividend yield at 1.04%, compared with 0.00% for IAU.

What is the main difference between VXF and IAU?

VXF is categorized as Mid Cap Blend Equities, while IAU is Gold. VXF tracks S&P Completion Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VXF and 0.25% for IAU.

Which has better risk-adjusted returns?

VXF currently has the higher Sharpe Ratio (1.45 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.