The SPDR Gold Shares (GLD) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and ITOT is a iShares Large Blend fund. So, what’s the difference between GLD and ITOT? And which fund is better?
The expense ratio of GLD is 0.37 percentage points higher than ITOT’s (0.4% vs. 0.03%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than ITOT over the past ten years.
In this article, we’ll compare GLD vs. ITOT. We’ll look at fund composition and holdings, as well as at their annual returns and performance. Moreover, I’ll also discuss GLD’s and ITOT’s portfolio growth, risk metrics, and industry exposure and examine how these affect their overall returns.
|Name||SPDR Gold Shares||iShares Core S&P Total U.S. Stock Market ETF|
|Issuer||SPDR State Street Global Advisors||iShares|
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 S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.
GLD’s dividend yield is 1.20% lower than that of ITOT (0.0% vs. 1.2%). Also, GLD yielded on average 8.78% less per year over the past decade (5.81% vs. 14.59%). The expense ratio of GLD is 0.37 percentage points higher than ITOT’s (0.4% vs. 0.03%).
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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 S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 24.49%. This is followed by Financial Services and Healthcare at 13.69% and 13.59% respectively. Basic Materials (2.47%), Energy (2.51%), and Real Estate (3.67%) only make up 8.65% of the fund’s total assets.
ITOT’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.79%, 9.21%, 10.54%, 11.69%, and 13.59%.
GLD is 24.49% less exposed to the Technology sector than ITOT (0.0% vs 24.49%). GLD’s exposure to Industrials and Energy stocks is 9.21% lower and 2.51% lower respectively (0.0% vs. 9.21% and 0.0% vs. 2.51%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 29.05% less of the fund’s holdings compared to ITOT (0.00% vs. 29.05%).
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%.
|Facebook Inc Class A||1.89%|
|Alphabet Inc Class A||1.79%|
|Alphabet Inc Class C||1.71%|
|Berkshire Hathaway Inc Class B||1.17%|
|JPMorgan Chase & Co||1.02%|
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.
Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.
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The SPDR Gold Shares (GLD) has a Standard Deviation of 16.58 with a Beta of 0.48 and a Treynor Ratio of 1.21. Its Mean Return is 0.21 while GLD’s Sharpe Ratio is 0.12. Furthermore, the fund has a R-squared of 16.21 and a Alpha of 3.91.
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Treynor Ratio of 14.13 with a R-squared of 99.4 and a Mean Return of 1.27. Its Alpha is -0.54 while ITOT’s Beta is 1.03. Furthermore, the fund has a Standard Deviation of 14.02 and a Sharpe Ratio of 1.04.
GLD’s Mean Return is 1.06 points lower than that of ITOT and its R-squared is 83.19 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than ITOT. The Alpha and Beta of GLD are 4.45 points higher and 0.55 points lower than ITOT’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 2013 was the strongest year for ITOT, returning 32.67% on an annual basis. The poorest year for ITOT in the last ten years was 2018, with a yield of -5.27%. Most years the iShares Core S&P Total U.S. Stock Market ETF has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 13.01%, 15.98%, and 16.15% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 ITOT, the end total would have been $42,310. This equates to a $32,310 profit over 11 years and a compound annual growth rate (CAGR) of 14.59%.
GLD’s CAGR is 8.78 percentage points lower than that of ITOT and as a result, would have yielded $25,915 less on a $10,000 investment. Thus, GLD performed worse than ITOT by 8.78% annually.
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