IAU vs VOO
ishares Gold Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IAU delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | IAU | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $64.2B | $997.4B | |
| Dividend Yield | 0.00% | 1.08% | |
| Holdings | 1 | 509 | |
| YTD Return | +4.38% | +12.25% | |
| 1Y Return | +34.85% | +20.92% | |
| 3Y Return (annualized) | +33.41% | +21.79% | |
| 5Y Return (annualized) | +20.21% | +13.05% | |
| Volatility (annualized) | 17.3% | 14.1% | |
| Max Drawdown | -45.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Jan 21, 2005 | Sep 7, 2010 |
IAU vs VOO Performance
ishares Gold Trust (IAU) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IAU returned +34.85% while VOO returned +20.92%. Year to date, IAU is up 4.38% versus a gain of 12.25% for VOO.
Over three years, IAU compounded at +33.41% per year against +21.79% for VOO; over five years the annualized figures are +20.21% and +13.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +11.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAU has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -45.1% for IAU and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAU charges 0.25% per year while VOO charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, IAU currently yields 0.00% against 1.08% for VOO.
Frequently Asked Questions
Which is cheaper, IAU or VOO?
IAU has an expense ratio of 0.25% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, IAU or VOO?
Over the past year IAU returned +34.85% vs +20.92% for VOO, so IAU leads on 1-year performance. Over the longest common window we track (16 years), IAU annualized +11.26% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, IAU or VOO?
IAU has been the more volatile fund at 17.3% annualized versus 14.1% for VOO. Worst drawdown: IAU -45.1% vs VOO -34.3%.
Should I hold both IAU and VOO?
IAU and VOO have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IAU or VOO?
IAU yields 0.00% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.