ETF Versus

IAU vs SHY

iShares Gold Trust vs iShares 1-3 Year Treasury Bond 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
SHY iShares

iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.

AUM: $24.6B ER: 0.15% Yield: 3.76% Since: Jul 22, 2002

Quick Verdict

SHY is significantly cheaper at 0.15% vs 0.25% expense ratio, saving you approximately $197 per $10,000 invested over 10 years. Over the past year, IAU has significantly outperformed with a 52.4% return vs -0.2%. Income investors may prefer SHY for its higher yield (3.8% vs 0.0%).

Key Metrics

Metric IAU SHY
Expense Ratio 0.25% 0.15%
Dividend Yield 0.0% 3.8%
Fund Family iShares iShares
Category Gold US Short-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

90 132 174 216 258 300 2021-04 2022-06 2023-09 2024-12 2026-04
IAU +172.6%
SHY -4.5%

Performance Comparison

Period IAU SHY Difference
1 Month -10.66% -0.59% -10.07%
3 Months +9.96% -0.65% +10.61%
6 Months +22.48% -0.57% +23.05%
YTD +9.96% -0.65% +10.61%
1 Year +52.36% -0.19% +52.55%
3 Years +138.19% +0.29% +137.90%
5 Years +172.58% -4.51% +177.09%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IAU Fees SHY Fees You Save
$10.000 10 years $495 $298 $197
$10.000 20 years $2.111 $1.278 $833
$10.000 30 years $6.758 $4.109 $2.649
$50.000 10 years $2.473 $1.490 $983
$50.000 30 years $33.792 $20.547 $13.245
$100.000 30 years $67.584 $41.094 $26.490

Risk Metrics

Based on 5 years of daily returns

Metric IAU SHY
Annualized Volatility 17.7% 2.1%
Max Drawdown -20.9% -6.7%
Sharpe Ratio 0.97 -2.55

Dividend Comparison

Metric IAU SHY
Annual Dividend (per share) $0.00 $3.10
Dividend Yield 0.00% 3.76%
Distribution Frequency None Monthly

Which One Should You Choose?

Choose SHY 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 SHY if...

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

Related Comparisons