GLD vs. DGRO: What’s The Difference?

The SPDR Gold Shares (GLD) and the iShares Core Dividend Growth ETF (DGRO) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and DGRO is a iShares Large Value fund. So, what’s the difference between GLD and DGRO? And which fund is better?

The expense ratio of GLD is 0.32 percentage points higher than DGRO’s (0.4% vs. 0.08%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than DGRO over the past ten years.

In this article, we’ll compare GLD vs. DGRO. We’ll look at fund composition and portfolio growth, as well as at their risk metrics and performance. Moreover, I’ll also discuss GLD’s and DGRO’s holdings, industry exposure, and annual returns and examine how these affect their overall returns.

Summary

GLD DGRO
Name SPDR Gold Shares iShares Core Dividend Growth ETF
Category N/A Large Value
Issuer SPDR State Street Global Advisors iShares
AUM 59.26B 20B
Avg. Return 5.81% 12.46%
Div. Yield 0.0% 2.04%
Expense Ratio 0.4% 0.08%

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 iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% with an expense ratio of 0.08%.

GLD’s dividend yield is 2.04% lower than that of DGRO (0.0% vs. 2.04%). Also, GLD yielded on average 6.65% less per year over the past decade (5.81% vs. 12.46%). The expense ratio of GLD is 0.32 percentage points higher than DGRO’s (0.4% vs. 0.08%).

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Fund Composition

Industry Exposure

GLD vs. DGRO - Industry Exposure

GLD DGRO
Technology 0.0% 18.98%
Industrials 0.0% 12.52%
Energy 0.0% 0.11%
Communication Services 0.0% 4.53%
Utilities 0.0% 7.34%
Healthcare 0.0% 17.55%
Consumer Defensive 0.0% 10.24%
Real Estate 0.0% 0.0%
Financial Services 0.0% 18.47%
Consumer Cyclical 0.0% 7.42%
Basic Materials 0.0% 2.83%

The SPDR Gold Shares (GLD) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.

GLD’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.

The iShares Core Dividend Growth ETF (DGRO) has the most exposure to the Technology sector at 18.98%. This is followed by Financial Services and Healthcare at 18.47% and 17.55% respectively. Energy (0.11%), Basic Materials (2.83%), and Communication Services (4.53%) only make up 7.47% of the fund’s total assets.

DGRO’s mid-section with moderate exposure is comprised of Utilities, Consumer Cyclical, Consumer Defensive, Industrials, and Healthcare stocks at 7.34%, 7.42%, 10.24%, 12.52%, and 17.55%.

GLD is 18.98% less exposed to the Technology sector than DGRO (0.0% vs 18.98%). GLD’s exposure to Industrials and Energy stocks is 12.52% lower and 0.11% lower respectively (0.0% vs. 12.52% and 0.0% vs. 0.11%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 25.89% less of the fund’s holdings compared to DGRO (0.00% vs. 25.89%).

Holdings

GLD - Holdings

GLD Holdings Weight
Gold Trust 100.0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%
N/A 0%

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%.

DGRO - Holdings

DGRO Holdings Weight
Microsoft Corp 3.29%
Apple Inc 3.26%
Pfizer Inc 2.89%
Johnson & Johnson 2.87%
Procter & Gamble Co 2.79%
Verizon Communications Inc 2.68%
JPMorgan Chase & Co 2.57%
The Home Depot Inc 2.35%
Merck & Co Inc 2.11%
Cisco Systems Inc 1.98%

DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.

Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.

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Risk Analysis

GLD DGRO
Mean Return 0.21 0
R-squared 16.21 0
Std. Deviation 16.58 0
Alpha 3.91 0
Beta 0.48 0
Sharpe Ratio 0.12 0
Treynor Ratio 1.21 0

The SPDR Gold Shares (GLD) has a Sharpe Ratio of 0.12 with a Alpha of 3.91 and a R-squared of 16.21. Its Standard Deviation is 16.58 while GLD’s Beta is 0.48. Furthermore, the fund has a Treynor Ratio of 1.21 and a Mean Return of 0.21.

The iShares Core Dividend Growth ETF (DGRO) has a R-squared of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Standard Deviation is 0 while DGRO’s Beta is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Mean Return of 0.

GLD’s Mean Return is 0.21 points higher than that of DGRO and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than DGRO. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than DGRO’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. DGRO - Annual Returns

Year GLD DGRO
2020 23.68% 9.47%
2019 18.36% 30.02%
2018 -1.54% -2.24%
2017 11.41% 22.84%
2016 8.69% 15.27%
2015 -11.78% -0.62%
2014 -0.58% 0.0%
2013 -28.09% 0.0%
2012 5.26% 0.0%
2011 11.2% 0.0%
2010 27.25% 0.0%

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 2019 was the strongest year for DGRO, returning 30.02% on an annual basis. The poorest year for DGRO in the last ten years was 2018, with a yield of -2.24%. Most years the iShares Core Dividend Growth ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

GLD vs. DGRO - Portfolio Growth

Fund Initial Balance Final Balance CAGR
GLD $10,000 $15,397 5.81%
DGRO $10,000 $19,580 12.46%

A $10,000 investment in GLD would have resulted in a final balance of $15,397. This is a profit of $5,397 over 6 years and amounts to a compound annual growth rate (CAGR) of 5.81%.

With a $10,000 investment in DGRO, the end total would have been $19,580. This equates to a $9,580 profit over 6 years and a compound annual growth rate (CAGR) of 12.46%.

GLD’s CAGR is 6.65 percentage points lower than that of DGRO and as a result, would have yielded $4,183 less on a $10,000 investment. Thus, GLD performed worse than DGRO by 6.65% annually.


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