ETF Versus

IAU vs IEFA

iShares Gold Trust vs iShares Core MSCI EAFE ETF

Last updated: 2026-04-02

IAU iShares

iShares Gold Trust (IAU) is an exchange-traded fund issued by iShares 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: $68.7B ER: 0.25% Yield: 0.00% Since: Jan 21, 2005
IEFA iShares

iShares Core MSCI EAFE ETF (IEFA) is an exchange-traded fund issued by iShares that provides exposure to equities in developed international markets outside the U.S.. It charges a low expense ratio of 0.07%. The fund offers an attractive dividend yield of 3.46%. Launched in 2012, the fund has a 14-year track record.

AUM: $164.3B ER: 0.07% Yield: 3.46% Since: Oct 18, 2012

Quick Verdict

IEFA is significantly cheaper at 0.07% vs 0.25% expense ratio, saving you approximately $355 per $10,000 invested over 10 years. Over the past year, IAU has significantly outperformed with a 52.4% return vs 21.2%. Income investors may prefer IEFA for its higher yield (3.5% vs 0.0%).

Key Metrics

Metric IAU IEFA
Expense Ratio 0.25% 0.07%
Dividend Yield 0.0% 3.5%
Fund Family iShares iShares
Category Gold International Developed

Performance Chart

Indexed to 100 at start (5-year comparison)

70 116 162 208 254 300 2021-04 2022-06 2023-09 2024-12 2026-04
IAU +172.6%
IEFA +24.0%

Performance Comparison

Period IAU IEFA Difference
1 Month -10.66% -4.68% -5.98%
3 Months +9.96% +1.73% +8.23%
6 Months +22.48% +3.46% +19.02%
YTD +9.96% +1.73% +8.23%
1 Year +52.36% +21.19% +31.17%
3 Years +138.19% +36.36% +101.83%
5 Years +172.58% +23.97% +148.61%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IAU Fees IEFA Fees You Save
$10.000 10 years $495 $140 $355
$10.000 20 years $2.111 $600 $1.511
$10.000 30 years $6.758 $1.938 $4.820
$50.000 10 years $2.473 $698 $1.775
$50.000 30 years $33.792 $9.692 $24.100
$100.000 30 years $67.584 $19.383 $48.200

Risk Metrics

Based on 5 years of daily returns

Metric IAU IEFA
Annualized Volatility 17.7% 16.6%
Max Drawdown -20.9% -33.1%
Sharpe Ratio 0.97 0.07

Dividend Comparison

Metric IAU IEFA
Annual Dividend (per share) $0.00 $3.18
Dividend Yield 0.00% 3.46%
Distribution Frequency None Semi-Annual or Annual

Top Holdings

IEFA Top Holdings

NameWeight
ASML Holding N.V.!ams/ASML2.18%
AstraZeneca PLC!lon/AZN1.25%
Novartis AG!swx/NOVN1.21%
Roche Holding AG!swx/ROP1.17%
HSBC Holdings plc!lon/HSBA1.16%
Shell plc!lon/SHEL1.12%
Nestlé S.A.!swx/NESN1.05%
Toyota Motor Corporation!tyo/72030.85%
Commonwealth Bank of Australia!asx/CBA0.85%
Mitsubishi UFJ Financial Group, Inc.!tyo/83060.81%

Which One Should You Choose?

Choose IEFA 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.

Choose IEFA if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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