IAU vs VTI
ishares Gold Trust vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IAU delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IAU | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $64.2B | $666.9B | |
| Dividend Yield | 0.00% | 1.07% | |
| Holdings | 1 | 3,543 | |
| YTD Return | +6.41% | +13.14% | |
| 1Y Return | +37.98% | +22.35% | |
| 3Y Return (annualized) | +34.19% | +21.83% | |
| 5Y Return (annualized) | +20.41% | +12.01% | |
| Volatility (annualized) | 17.4% | 15.3% | |
| Max Drawdown | -45.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Jan 21, 2005 | May 24, 2001 |
IAU vs VTI Performance
ishares Gold Trust (IAU) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IAU returned +37.98% while VTI returned +22.35%. Year to date, IAU is up 6.41% versus a gain of 13.14% for VTI.
Over three years, IAU compounded at +34.19% per year against +21.83% for VTI; over five years the annualized figures are +20.41% and +12.01% respectively. Across the full 22-year window we track, IAU has the edge at +11.36% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAU has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAU charges 0.25% per year while VTI 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 1.07% for VTI.
Frequently Asked Questions
Which is cheaper, IAU or VTI?
IAU has an expense ratio of 0.25% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, IAU or VTI?
Over the past year IAU returned +37.98% vs +22.35% for VTI, so IAU leads on 1-year performance. Over the longest common window we track (22 years), IAU annualized +11.36% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IAU or VTI?
IAU has been the more volatile fund at 17.4% annualized versus 15.3% for VTI. Worst drawdown: IAU -45.1% vs VTI -56.6%.
Should I hold both IAU and VTI?
IAU and VTI have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IAU or VTI?
IAU yields 0.00% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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