The SPDR Gold Shares (GLD) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and BNDX is a Vanguard N/A fund. So, what’s the difference between GLD and BNDX? And which fund is better?
The expense ratio of GLD is 0.32 percentage points higher than BNDX’s (0.4% vs. 0.08%). GLD also has a high exposure to the technology sector while BNDX is mostly comprised of A bonds. Overall, GLD has provided higher returns than BNDX over the past ten years.
In this article, we’ll compare GLD vs. BNDX. We’ll look at annual returns and holdings, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss GLD’s and BNDX’s risk metrics, industry exposure, and performance and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Total International 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 Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.
GLD’s dividend yield is 0.94% lower than that of BNDX (0.0% vs. 0.94%). Also, GLD yielded on average 1.18% more per year over the past decade (5.81% vs. 4.63%). The expense ratio of GLD is 0.32 percentage points higher than BNDX’s (0.4% vs. 0.08%).
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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%.
|BNDX Bond Sectors||Weight|
BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), B (0.0%), and BB (0.0%) rated bonds.
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The SPDR Gold Shares (GLD) has a Treynor Ratio of 1.21 with a Alpha of 3.91 and a Mean Return of 0.21. Its R-squared is 16.21 while GLD’s Beta is 0.48. Furthermore, the fund has a Sharpe Ratio of 0.12 and a Standard Deviation of 16.58.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Mean Return of 0 and a Alpha of 0. Its Standard Deviation is 0 while BNDX’s Treynor Ratio is 0. Furthermore, the fund has a R-squared of 0 and a Beta of 0.
GLD’s Mean Return is 0.21 points higher than that of BNDX and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than BNDX. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than BNDX’s Alpha and Beta.
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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 2014 was the strongest year for BNDX, returning 8.83% on an annual basis. The poorest year for BNDX in the last ten years was 2013, with a yield of 0.0%. Most years the Vanguard Total International Bond Index Fund ETF Shares has given investors modest returns, such as in 2015, 2017, and 2018, when gains were 1.08%, 2.4%, and 2.94% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $15,308. This is a profit of $5,308 over 7 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in BNDX, the end total would have been $13,695. This equates to a $3,695 profit over 7 years and a compound annual growth rate (CAGR) of 4.63%.
GLD’s CAGR is 1.18 percentage points higher than that of BNDX and as a result, would have yielded $1,613 more on a $10,000 investment. Thus, GLD outperformed BNDX by 1.18% annually.
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