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GLD vs. DIA: What’s The Difference?

The SPDR Gold Shares (GLD) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between GLD and DIA? And which fund is better?

The expense ratio of GLD is 0.24 percentage points higher than DIA’s (0.4% vs. 0.16%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than DIA over the past ten years.

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

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Summary

GLDDIA
NameSPDR Gold SharesSPDR Dow Jones Industrial Average ETF Trust
CategoryN/ALarge Value
IssuerSPDR State Street Global AdvisorsSPDR State Street Global Advisors
AUM59.26B30.46B
Avg. Return5.81%13.35%
Div. Yield0.0%1.61%
Expense Ratio0.4%0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

GLD’s dividend yield is 1.61% lower than that of DIA (0.0% vs. 1.61%). Also, GLD yielded on average 7.55% less per year over the past decade (5.81% vs. 13.35%). The expense ratio of GLD is 0.24 percentage points higher than DIA’s (0.4% vs. 0.16%).

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Fund Composition

Industry Exposure

GLD vs. DIA - Industry Exposure

GLDDIA
Technology0.0%17.32%
Industrials0.0%16.7%
Energy0.0%2.0%
Communication Services0.0%4.42%
Utilities0.0%0.0%
Healthcare0.0%17.92%
Consumer Defensive0.0%6.3%
Real Estate0.0%0.0%
Financial Services0.0%20.68%
Consumer Cyclical0.0%13.44%
Basic Materials0.0%1.21%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

GLD is 17.32% less exposed to the Technology sector than DIA (0.0% vs 17.32%). GLD’s exposure to Industrials and Energy stocks is 16.70% lower and 2.00% lower respectively (0.0% vs. 16.7% and 0.0% vs. 2.0%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 34.12% less of the fund’s holdings compared to DIA (0.00% vs. 34.12%).

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%.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

GLDDIA
Mean Return0.211.13
R-squared16.2193.31
Std. Deviation16.5813.68
Alpha3.91-0.94
Beta0.480.97
Sharpe Ratio0.120.94
Treynor Ratio1.2113.07

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

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Treynor Ratio of 13.07 with a Sharpe Ratio of 0.94 and a Alpha of -0.94. Its Beta is 0.97 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Standard Deviation of 13.68 and a R-squared of 93.31.

GLD’s Mean Return is 0.92 points lower than that of DIA and its R-squared is 77.10 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than DIA. The Alpha and Beta of GLD are 4.85 points higher and 0.49 points lower than DIA’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. DIA - Annual Returns

YearGLDDIA
202023.68%9.63%
201918.36%25.09%
2018-1.54%-3.6%
201711.41%27.97%
20168.69%16.28%
2015-11.78%0.1%
2014-0.58%9.88%
2013-28.09%29.41%
20125.26%10.04%
201111.2%8.21%
201027.25%13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

GLD vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$16,3955.81%
DIA$10,000$37,96513.35%

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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

GLD’s CAGR is 7.55 percentage points lower than that of DIA and as a result, would have yielded $21,570 less on a $10,000 investment. Thus, GLD performed worse than DIA by 7.55% annually.


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