The SPDR Gold Shares (GLD) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and IUSB is a iShares N/A fund. So, what’s the difference between GLD and IUSB? And which fund is better?
The expense ratio of GLD is 0.34 percentage points higher than IUSB’s (0.4% vs. 0.06%). GLD also has a high exposure to the technology sector while IUSB is mostly comprised of AAA bonds. Overall, GLD has provided higher returns than IUSB over the past ten years.
In this article, we’ll compare GLD vs. IUSB. We’ll look at risk metrics and fund composition, as well as at their performance and portfolio growth. Moreover, I’ll also discuss GLD’s and IUSB’s annual returns, holdings, and industry exposure and examine how these affect their overall returns.
Summary
| GLD | IUSB | |
| Name | SPDR Gold Shares | iShares Core Total USD Bond Market ETF |
| Category | N/A | N/A |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 59.26B | 14.49B |
| Avg. Return | 5.81% | 4.13% |
| Div. Yield | 0.0% | 2.1% |
| Expense Ratio | 0.4% | 0.06% |
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 Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.
GLD’s dividend yield is 2.10% lower than that of IUSB (0.0% vs. 2.1%). Also, GLD yielded on average 1.68% more per year over the past decade (5.81% vs. 4.13%). The expense ratio of GLD is 0.34 percentage points higher than IUSB’s (0.4% vs. 0.06%).
Fund Composition
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%.
| IUSB Bond Sectors | Weight |
| AAA | 58.32% |
| BBB | 16.98% |
| A | 12.27% |
| BB | 4.33% |
| AA | 3.36% |
| B | 2.8% |
| Others | 1.01% |
| Below B | 0.92% |
| US Government | 0.0% |
IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.
Risk Analysis
| GLD | IUSB | |
| 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 Alpha of 3.91 with a Treynor Ratio of 1.21 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 Beta of 0.48 and a R-squared of 16.21.
The iShares Core Total USD Bond Market ETF (IUSB) has a Sharpe Ratio of 0 with a Alpha of 0 and a Mean Return of 0. Its Standard Deviation is 0 while IUSB’s Treynor Ratio is 0. Furthermore, the fund has a R-squared of 0 and a Beta of 0.
GLD’s Mean Return is 0.21 points higher than that of IUSB and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than IUSB. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than IUSB’s Alpha and Beta.
Performance
Annual Returns
| Year | GLD | IUSB |
| 2020 | 23.68% | 7.59% |
| 2019 | 18.36% | 9.26% |
| 2018 | -1.54% | -0.38% |
| 2017 | 11.41% | 4.06% |
| 2016 | 8.69% | 3.78% |
| 2015 | -11.78% | 0.46% |
| 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 IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| GLD | $10,000 | $15,397 | 5.81% |
| IUSB | $10,000 | $12,704 | 4.13% |
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 IUSB, the end total would have been $12,704. This equates to a $2,704 profit over 6 years and a compound annual growth rate (CAGR) of 4.13%.
GLD’s CAGR is 1.68 percentage points higher than that of IUSB and as a result, would have yielded $2,693 more on a $10,000 investment. Thus, GLD outperformed IUSB by 1.68% annually.
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