IAU vs VXUS
ishares Gold Trust vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IAU delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | IAU | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.05% | |
| AUM | $60.5B | $156.5B | |
| Dividend Yield | 0.00% | 2.60% | |
| Holdings | 2 | 8,747 | |
| YTD Return | +1.16% | +14.07% | |
| 1Y Return | +30.62% | +27.24% | |
| 3Y Return (annualized) | +31.58% | +19.27% | |
| 5Y Return (annualized) | +20.17% | +9.14% | |
| Volatility (annualized) | 17.2% | 15.1% | |
| Max Drawdown | -45.1% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Jan 21, 2005 | Jan 26, 2011 |
IAU vs VXUS Performance
ishares Gold Trust (IAU) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IAU returned +30.62% while VXUS returned +27.24%. Year to date, IAU is up 1.16% versus a gain of 14.07% for VXUS.
Over three years, IAU compounded at +31.58% per year against +19.27% for VXUS; over five years the annualized figures are +20.17% and +9.14% respectively. Across the full 16-year window we track, IAU has the edge at +11.11% annualized vs +4.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAU has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAU charges 0.25% per year while VXUS charges 0.05%. On a $10,000 position that is $25 vs $5 annually, a gap of $20 per year that compounds over a long holding period. On income, IAU currently yields 0.00% against 2.60% for VXUS.
Frequently Asked Questions
Which is cheaper, IAU or VXUS?
IAU has an expense ratio of 0.25% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, IAU or VXUS?
Over the past year IAU returned +30.62% vs +27.24% for VXUS, so IAU leads on 1-year performance. Over the longest common window we track (16 years), IAU annualized +11.11% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, IAU or VXUS?
IAU has been the more volatile fund at 17.2% annualized versus 15.1% for VXUS. Worst drawdown: IAU -45.1% vs VXUS -39.9%.
Should I hold both IAU and VXUS?
IAU and VXUS have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IAU or VXUS?
IAU yields 0.00% while VXUS yields 2.60%, so VXUS 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.