ETF Versus

BND vs IAU

Vanguard Total Bond Market Index Fund vs iShares Gold Trust

Last updated: 2026-04-10

BND Vanguard

Vanguard Total Bond Market Index Fund (BND) is an exchange-traded fund issued by Vanguard that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.92%. Launched in 2007, the fund has a 19-year track record.

AUM: $152.0B ER: 0.03% Yield: 3.92% Since: Apr 3, 2007
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: $73.9B ER: 0.25% Yield: N/A Since: Jan 21, 2005

Quick Verdict

BND 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 50.0% return vs 2.2%.

Key Metrics

Metric BND IAU
Expense Ratio 0.03% 0.25%
Dividend Yield 3.9% N/A
Fund Family Vanguard iShares
Category US Aggregate Bond Gold

Performance Chart

Indexed to 100 at start (5-year comparison)

80 126 172 218 264 310 2021-04 2022-07 2023-10 2025-01 2026-04
BND -13.3%
IAU +171.9%

Performance Comparison

Period BND IAU Difference
1 Month -0.29% -8.01% +7.72%
3 Months -0.73% +3.75% -4.48%
6 Months -1.29% +15.89% -17.18%
YTD -0.49% +10.02% -10.51%
1 Year +2.18% +50.03% -47.85%
3 Years -0.40% +136.21% -136.61%
5 Years -13.25% +171.92% -185.17%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

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

Risk Metrics

Based on 5 years of daily returns

Metric BND IAU
Annualized Volatility 6.0% 17.7%
Max Drawdown -21.7% -20.9%
Sharpe Ratio -1.19 0.97

Dividend Comparison

Metric BND IAU
Annual Dividend (per share) $2.89 $0.00
Dividend Yield 3.92% 0.00%
Distribution Frequency Monthly None

Which One Should You Choose?

Choose BND 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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