IAU vs. VT - ETF Comparison
IAU - iShares Gold Trust
The iShares Gold Trust is a commodity ETF that tracks the spot price of gold bullion, offering investors a cost-effective way to gain exposure to the precious metal. By holding physical gold bars in a secure vault, the fund provides a convenient and liquid way to invest in gold.
VT - Vanguard Total World Stock ETF
The Vanguard Total World Stock ETF provides broad-based exposure to global equity markets, including the US, developed markets, and emerging economies. With a diversified portfolio of over 9,700 holdings, it offers a one-stop shop for equity exposure, with a focus on large-cap stocks. The fund's market-cap weighting scheme and low expense ratio make it an attractive option for cost-conscious investors seeking long-term growth.
| IAU | VT | |
|---|---|---|
| Fund Name | iShares Gold Trust | Vanguard Total World Stock ETF |
| Fund Provider | BlackRock | Vanguard |
| Index | LBMA Gold Price PM | FTSE Global All Cap Index |
| Asset Class | Commodity | Equity |
| Listing | US-listed | US-listed |
| Expense Ratio | 0.25% | 0.07% |
| Inception Date | 2005-01-21 | 2008-06-24 |
| Number Of Holdings | 1 | 9731 |
| Region | Global | Global |
| Leveraged | Non-leveraged | Non-leveraged |
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Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Performance Analysis
The performance analysis examines historical data to assess the returns of the investment strategy, including key metrics such as Cumulative returns, End of Year (EoY) returns, and risk-adjusted returns like the Sharpe ratio or the Sortino ratio.
Cumulative Returns
End of Year Returns Table
End of Year Returns
Risk Analysis
The risk analysis refers to an assessment of potential negative events that could lead to a loss of capital. Conducting a risk analysis can help in deciding whether an investment should be made. This is done using risk metrics such as drawdowns, volatility and beta which reflect stakeholders' confidence in the consistency of an investment strategy.
Drawdowns
Drawdowns Table
Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.