What if you invested monthly in a Gold ETF (IAU) for 20 years?
See how a 20-year monthly investment into IAU, a low-cost gold ETF that tracks the spot price of gold, would have looked using real data. Even gold, often called a safe haven, went through multi-year underwater periods.
Investment conditions
Asset · Gold ETF (IAU)
Method · Recurring monthly investment
Period · 2006-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-28.8%
Largest drop from peak
Longest loss period
3months
Months in loss: 6
Recovery period
34months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $53,556 → Final value $157,378 (+193.9%), Maximum drawdown (MDD) -28.8%
Why this period and asset
IAU is an ETF that tracks the spot price of gold, similar to the well-known GLD but often cited as a lower-cost alternative with a smaller expense ratio. Gold is seen as a safe haven during crises and inflation, but it pays no interest or dividend, so gains and losses come only from price changes. This 20-year window includes both the strong post-2008 rise and the sharp decline around 2013 that left gold weak for several years. In short, even gold can go through long underwater periods.
Interpreting the result
Gold is often called a safe haven, but the maximum drawdown, underwater period, and recovery time on the results screen show it can endure multi-year declines and stagnation. Gold often moves differently from stocks, which some rely on for diversification, but it pays no interest or dividend, so simply holding it produces no cash flow. Monthly investing smooths your average cost by spreading out timing but does not remove losses.
Caveats & limits
Gold pays no interest or dividend and relies on price appreciation, and despite its safe-haven image it can have long underwater periods. As a foreign asset, exchange rates affect won-denominated returns, and expense ratios, trading costs, and capital-gains taxes lower performance. Past performance does not guarantee the future, and this page does not recommend buying.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
What is the difference between IAU and GLD?
Both are ETFs that track the spot price of gold, so their basic nature is similar. However, IAU is often cited as a lower-cost alternative with a smaller expense ratio. Over a long monthly plan, that fee difference can affect cumulative results.
Since gold is a safe haven, is there no loss?
Gold is called a safe haven in the sense that it has no credit risk, but its price still swings widely. The underwater period on the results screen shows that gold too can stay below your invested amount or its peak for several years.
Does gold pay interest or dividends?
No. Holding gold produces no interest or dividend, and gains and losses come only from price changes. In fact, the ETF's expense ratio is an ongoing cost.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.