ETF Versus

IAU vs VB

iShares Gold Trust vs Vanguard Small-Cap Index Fund ETF Shares

Last updated: 2026-04-09

IAU

iShares Gold Trust (IAU) is an exchange-traded fund that provides exposure to gold securities. It charges a moderate expense ratio of 0.25%. Launched in 2005, the fund has a 21-year track record.

AUM: $73.9B ER: 0.25% Yield: N/A Since: Jan 21, 2005
VB

Vanguard Small-Cap Index Fund ETF Shares (VB) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.28%. Launched in 2004, the fund has a 22-year track record.

AUM: $73.4B ER: 0.03% Yield: 1.28% Since: Jan 26, 2004

Quick Verdict

VB is significantly cheaper at 0.03% vs 0.25% expense ratio, saving you approximately $435 per $10,000 invested over 10 years. Over the past year, IAU has significantly outperformed with a 51.5% return vs 25.2%.

Key Metrics

Metric IAU VB
Expense Ratio 0.25% 0.03%
Dividend Yield N/A 1.3%
Fund Family N/A N/A
Category Gold US Small Cap

Performance Chart

Indexed to 100 at start (5-year comparison)

75 121 167 213 259 305 2021-04 2022-07 2023-10 2024-12 2026-04
IAU +166.3%
VB +21.8%

Performance Comparison

Period IAU VB Difference
1 Month -9.60% -0.41% -9.19%
3 Months +4.21% -2.30% +6.51%
6 Months +14.25% +4.94% +9.31%
YTD +8.46% +1.53% +6.93%
1 Year +51.52% +25.24% +26.28%
3 Years +134.21% +42.10% +92.11%
5 Years +168.06% +21.70% +146.36%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IAU Fees VB Fees You Save
$10,000 10 years $495 $60 $435
$10,000 20 years $2,111 $258 $1,853
$10,000 30 years $6,758 $835 $5,923
$50,000 10 years $2,473 $299 $2,173
$50,000 30 years $33,792 $4,176 $29,616
$100,000 30 years $67,584 $8,352 $59,232

Risk Metrics

Based on 5 years of daily returns

Metric IAU VB
Annualized Volatility 17.7% 20.8%
Max Drawdown -20.9% -28.8%
Sharpe Ratio 0.95 0.08

Dividend Comparison

Metric IAU VB
Annual Dividend (per share) $0.00 $3.50
Dividend Yield 0.00% 1.32%
Distribution Frequency None Quarterly

Top Holdings

VB Top Holdings

NameWeight
Sandisk CorporationSNDK1.21%
Comfort Systems USA, Inc.FIX0.65%
Lumentum Holdings Inc.LITE0.64%
Ciena CorporationCIEN0.64%
Coherent Corp.COHR0.53%
Rocket Lab CorporationRKLB0.48%
NRG Energy, Inc.NRG0.44%
Bloom Energy CorporationBE0.43%
EMCOR Group, Inc.EME0.42%

Which One Should You Choose?

Choose VB if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IAU if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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