Skip to content

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.

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

GLDDGRO
NameSPDR Gold SharesiShares Core Dividend Growth ETF
CategoryN/ALarge Value
IssuerSPDR State Street Global AdvisorsiShares
AUM59.26B20B
Avg. Return5.81%12.46%
Div. Yield0.0%2.04%
Expense Ratio0.4%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%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Industry Exposure

GLD vs. DGRO - Industry Exposure

GLDDGRO
Technology0.0%18.98%
Industrials0.0%12.52%
Energy0.0%0.11%
Communication Services0.0%4.53%
Utilities0.0%7.34%
Healthcare0.0%17.55%
Consumer Defensive0.0%10.24%
Real Estate0.0%0.0%
Financial Services0.0%18.47%
Consumer Cyclical0.0%7.42%
Basic Materials0.0%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 HoldingsWeight
Gold Trust100.0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%

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 HoldingsWeight
Microsoft Corp3.29%
Apple Inc3.26%
Pfizer Inc2.89%
Johnson & Johnson2.87%
Procter & Gamble Co2.79%
Verizon Communications Inc2.68%
JPMorgan Chase & Co2.57%
The Home Depot Inc2.35%
Merck & Co Inc2.11%
Cisco Systems Inc1.98%

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%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

GLDDGRO
Mean Return0.210
R-squared16.210
Std. Deviation16.580
Alpha3.910
Beta0.480
Sharpe Ratio0.120
Treynor Ratio1.210

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.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

GLD vs. DGRO - Annual Returns

YearGLDDGRO
202023.68%9.47%
201918.36%30.02%
2018-1.54%-2.24%
201711.41%22.84%
20168.69%15.27%
2015-11.78%-0.62%
2014-0.58%0.0%
2013-28.09%0.0%
20125.26%0.0%
201111.2%0.0%
201027.25%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

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$15,3975.81%
DGRO$10,000$19,58012.46%

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.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.