The SPDR Gold Shares (GLD) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between GLD and EFV? And which fund is better?
The expense ratio of GLD is 0.01 percentage points higher than EFV’s (0.4% vs. 0.39%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided higher returns than EFV over the past ten years.
In this article, we’ll compare GLD vs. EFV. We’ll look at fund composition and industry exposure, as well as at their annual returns and risk metrics. Moreover, I’ll also discuss GLD’s and EFV’s portfolio growth, performance, and holdings and examine how these affect their overall returns.
Summary
| GLD | EFV | |
| Name | SPDR Gold Shares | iShares MSCI EAFE Value ETF |
| Category | N/A | Foreign Large Value |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 59.26B | 14.37B |
| Avg. Return | 5.81% | 3.99% |
| Div. Yield | 0.0% | 2.94% |
| Expense Ratio | 0.4% | 0.39% |
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 MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
GLD’s dividend yield is 2.94% lower than that of EFV (0.0% vs. 2.94%). Also, GLD yielded on average 1.81% more per year over the past decade (5.81% vs. 3.99%). The expense ratio of GLD is 0.01 percentage points higher than EFV’s (0.4% vs. 0.39%).
Fund Composition
Industry Exposure
| GLD | EFV | |
| Technology | 0.0% | 2.98% |
| Industrials | 0.0% | 11.6% |
| Energy | 0.0% | 6.6% |
| Communication Services | 0.0% | 6.46% |
| Utilities | 0.0% | 6.14% |
| Healthcare | 0.0% | 9.19% |
| Consumer Defensive | 0.0% | 6.82% |
| Real Estate | 0.0% | 5.06% |
| Financial Services | 0.0% | 26.55% |
| Consumer Cyclical | 0.0% | 9.0% |
| Basic Materials | 0.0% | 9.59% |
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 MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
GLD is 2.98% less exposed to the Technology sector than EFV (0.0% vs 2.98%). GLD’s exposure to Industrials and Energy stocks is 11.60% lower and 6.60% lower respectively (0.0% vs. 11.6% and 0.0% vs. 6.6%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 40.61% less of the fund’s holdings compared to EFV (0.00% vs. 40.61%).
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%.
| EFV Holdings | Weight |
| Novartis AG | 2.41% |
| Toyota Motor Corp | 2.21% |
| Commonwealth Bank of Australia | 1.59% |
| Siemens AG | 1.45% |
| Sanofi SA | 1.42% |
| HSBC Holdings PLC | 1.4% |
| TotalEnergies SE | 1.35% |
| Allianz SE | 1.23% |
| GlaxoSmithKline PLC | 1.18% |
| Rio Tinto PLC | 1.1% |
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
Risk Analysis
| GLD | EFV | |
| Mean Return | 0.21 | 0.42 |
| R-squared | 16.21 | 92.15 |
| Std. Deviation | 16.58 | 16.53 |
| Alpha | 3.91 | -1.77 |
| Beta | 0.48 | 1.05 |
| Sharpe Ratio | 0.12 | 0.26 |
| Treynor Ratio | 1.21 | 2.92 |
The SPDR Gold Shares (GLD) has a R-squared of 16.21 with a Alpha of 3.91 and a Sharpe Ratio of 0.12. Its Standard Deviation is 16.58 while GLD’s Mean Return is 0.21. Furthermore, the fund has a Treynor Ratio of 1.21 and a Beta of 0.48.
The iShares MSCI EAFE Value ETF (EFV) has a Standard Deviation of 16.53 with a Treynor Ratio of 2.92 and a Alpha of -1.77. Its Sharpe Ratio is 0.26 while EFV’s R-squared is 92.15. Furthermore, the fund has a Mean Return of 0.42 and a Beta of 1.05.
GLD’s Mean Return is 0.21 points lower than that of EFV and its R-squared is 75.94 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than EFV. The Alpha and Beta of GLD are 5.68 points higher and 0.57 points lower than EFV’s Alpha and Beta.
Performance
Annual Returns
| Year | GLD | EFV |
| 2020 | 23.68% | -2.78% |
| 2019 | 18.36% | 15.97% |
| 2018 | -1.54% | -14.88% |
| 2017 | 11.41% | 21.22% |
| 2016 | 8.69% | 4.87% |
| 2015 | -11.78% | -5.89% |
| 2014 | -0.58% | -5.65% |
| 2013 | -28.09% | 22.61% |
| 2012 | 5.26% | 17.52% |
| 2011 | 11.2% | -12.24% |
| 2010 | 27.25% | 3.18% |
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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| GLD | $10,000 | $16,395 | 5.81% |
| EFV | $10,000 | $14,134 | 3.99% |
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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.
GLD’s CAGR is 1.81 percentage points higher than that of EFV and as a result, would have yielded $2,261 more on a $10,000 investment. Thus, GLD outperformed EFV by 1.81% annually.
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