The SPDR Gold Shares (GLD) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between GLD and BIV? And which fund is better?
The expense ratio of GLD is 0.35 percentage points higher than BIV’s (0.4% vs. 0.05%). GLD also has a high exposure to the technology sector while BIV is mostly comprised of AAA bonds. Overall, GLD has provided higher returns than BIV over the past ten years.
In this article, we’ll compare GLD vs. BIV. We’ll look at fund composition and industry exposure, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss GLD’s and BIV’s holdings, performance, and portfolio growth and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Intermediate-Term Bond Index Fund ETF Shares|
|Issuer||SPDR State Street Global Advisors||Vanguard|
The SPDR Gold Shares (GLD) is a N/A fund that is issued by SPDR State Street Global Advisors. It currently has 59.26B total assets under management and has yielded an average annual return of 5.81% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.4%.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.
GLD’s dividend yield is 2.06% lower than that of BIV (0.0% vs. 2.06%). Also, GLD yielded on average 0.49% more per year over the past decade (5.81% vs. 5.31%). The expense ratio of GLD is 0.35 percentage points higher than BIV’s (0.4% vs. 0.05%).
GLD’s Top Holdings are Gold Trust, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the GLD’s holdings at 0% and 0%.
|BIV Bond Sectors||Weight|
BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.
The SPDR Gold Shares (GLD) has a Standard Deviation of 16.58 with a Treynor Ratio of 1.21 and a Mean Return of 0.21. Its Beta is 0.48 while GLD’s R-squared is 16.21. Furthermore, the fund has a Sharpe Ratio of 0.12 and a Alpha of 3.91.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a R-squared of 95.12 with a Treynor Ratio of 2.72 and a Sharpe Ratio of 0.89. Its Mean Return is 0.35 while BIV’s Beta is 1.33. Furthermore, the fund has a Standard Deviation of 4.09 and a Alpha of -0.07.
GLD’s Mean Return is 0.14 points lower than that of BIV and its R-squared is 78.91 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than BIV. The Alpha and Beta of GLD are 3.98 points higher and 0.85 points lower than BIV’s Alpha and Beta.
GLD had its best year in 2010 with an annual return of 27.25%. GLD’s worst year over the past decade yielded -28.09% and occurred in 2013. In most years the SPDR Gold Shares provided moderate returns such as in 2012, 2016, and 2011 where annual returns amounted to 5.26%, 8.69%, and 11.2% respectively.
The year 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $16,395. This is a profit of $6,395 over 11 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in BIV, the end total would have been $17,492. This equates to a $7,492 profit over 11 years and a compound annual growth rate (CAGR) of 5.31%.
GLD’s CAGR is 0.49 percentage points higher than that of BIV and as a result, would have yielded $1,097 less on a $10,000 investment. Thus, GLD outperformed BIV by 0.49% annually.
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