IAU vs VYM
ishares Gold Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IAU delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IAU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $60.5B | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 2 | 568 | |
| YTD Return | +0.27% | +16.78% | |
| 1Y Return | +29.21% | +24.43% | |
| 3Y Return (annualized) | +31.31% | +18.60% | |
| 5Y Return (annualized) | +19.28% | +12.30% | |
| Volatility (annualized) | 17.2% | 14.6% | |
| Max Drawdown | -45.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Jan 21, 2005 | Nov 10, 2006 |
IAU vs VYM Performance
ishares Gold Trust (IAU) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IAU returned +29.21% while VYM returned +24.43%. Year to date, IAU is up 0.27% versus a gain of 16.78% for VYM.
Over three years, IAU compounded at +31.31% per year against +18.60% for VYM; over five years the annualized figures are +19.28% and +12.30% respectively. Across the full 20-year window we track, IAU has the edge at +11.06% annualized vs +7.11%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAU charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, IAU currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, IAU or VYM?
IAU has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, IAU or VYM?
Over the past year IAU returned +29.21% vs +24.43% for VYM, so IAU leads on 1-year performance. Over the longest common window we track (20 years), IAU annualized +11.06% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IAU or VYM?
IAU has been the more volatile fund at 17.2% annualized versus 14.6% for VYM. Worst drawdown: IAU -45.1% vs VYM -58.8%.
Should I hold both IAU and VYM?
IAU and VYM have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IAU or VYM?
IAU yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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