The SPDR Gold Shares (GLD) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and IVE is a iShares Large Value fund. So, what’s the difference between GLD and IVE? And which fund is better?
The expense ratio of GLD is 0.22 percentage points higher than IVE’s (0.4% vs. 0.18%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than IVE over the past ten years.
In this article, we’ll compare GLD vs. IVE. We’ll look at holdings and annual returns, as well as at their risk metrics and industry exposure. Moreover, I’ll also discuss GLD’s and IVE’s performance, fund composition, and portfolio growth and examine how these affect their overall returns.
Summary
| GLD | IVE | |
| Name | SPDR Gold Shares | iShares S&P 500 Value ETF |
| Category | N/A | Large Value |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 59.26B | 22.4B |
| Avg. Return | 5.81% | 11.68% |
| Div. Yield | 0.0% | 1.88% |
| Expense Ratio | 0.4% | 0.18% |
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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
GLD’s dividend yield is 1.88% lower than that of IVE (0.0% vs. 1.88%). Also, GLD yielded on average 5.88% less per year over the past decade (5.81% vs. 11.68%). The expense ratio of GLD is 0.22 percentage points higher than IVE’s (0.4% vs. 0.18%).
Fund Composition
Industry Exposure
| GLD | IVE | |
| Technology | 0.0% | 9.41% |
| Industrials | 0.0% | 12.19% |
| Energy | 0.0% | 5.43% |
| Communication Services | 0.0% | 6.4% |
| Utilities | 0.0% | 4.82% |
| Healthcare | 0.0% | 15.4% |
| Consumer Defensive | 0.0% | 9.23% |
| Real Estate | 0.0% | 4.38% |
| Financial Services | 0.0% | 22.06% |
| Consumer Cyclical | 0.0% | 7.68% |
| Basic Materials | 0.0% | 2.99% |
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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.
IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.
GLD is 9.41% less exposed to the Technology sector than IVE (0.0% vs 9.41%). GLD’s exposure to Industrials and Energy stocks is 12.19% lower and 5.43% lower respectively (0.0% vs. 12.19% and 0.0% vs. 5.43%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 34.12% less of the fund’s holdings compared to IVE (0.00% vs. 34.12%).
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%.
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
Risk Analysis
| GLD | IVE | |
| Mean Return | 0.21 | 1.05 |
| R-squared | 16.21 | 92.08 |
| Std. Deviation | 16.58 | 14.3 |
| Alpha | 3.91 | -2.9 |
| Beta | 0.48 | 1.01 |
| Sharpe Ratio | 0.12 | 0.83 |
| Treynor Ratio | 1.21 | 11.41 |
The SPDR Gold Shares (GLD) has a Treynor Ratio of 1.21 with a Beta of 0.48 and a Standard Deviation of 16.58. Its Alpha is 3.91 while GLD’s R-squared is 16.21. Furthermore, the fund has a Mean Return of 0.21 and a Sharpe Ratio of 0.12.
The iShares S&P 500 Value ETF (IVE) has a Alpha of -2.9 with a Mean Return of 1.05 and a Sharpe Ratio of 0.83. Its R-squared is 92.08 while IVE’s Treynor Ratio is 11.41. Furthermore, the fund has a Beta of 1.01 and a Standard Deviation of 14.3.
GLD’s Mean Return is 0.84 points lower than that of IVE and its R-squared is 75.87 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than IVE. The Alpha and Beta of GLD are 6.81 points higher and 0.53 points lower than IVE’s Alpha and Beta.
Performance
Annual Returns
| Year | GLD | IVE |
| 2020 | 23.68% | 1.24% |
| 2019 | 18.36% | 31.71% |
| 2018 | -1.54% | -9.09% |
| 2017 | 11.41% | 15.19% |
| 2016 | 8.69% | 17.17% |
| 2015 | -11.78% | -3.24% |
| 2014 | -0.58% | 12.14% |
| 2013 | -28.09% | 31.69% |
| 2012 | 5.26% | 17.45% |
| 2011 | 11.2% | -0.63% |
| 2010 | 27.25% | 14.9% |
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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| GLD | $10,000 | $16,395 | 5.81% |
| IVE | $10,000 | $31,350 | 11.68% |
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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.
GLD’s CAGR is 5.88 percentage points lower than that of IVE and as a result, would have yielded $14,955 less on a $10,000 investment. Thus, GLD performed worse than IVE by 5.88% annually.
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