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GLD vs. IVW: What’s The Difference?

The SPDR Gold Shares (GLD) and the iShares S&P 500 Growth ETF (IVW) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and IVW is a iShares Large Growth fund. So, what’s the difference between GLD and IVW? And which fund is better?

The expense ratio of GLD is 0.22 percentage points higher than IVW’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 IVW over the past ten years.

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

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Summary

GLDIVW
NameSPDR Gold SharesiShares S&P 500 Growth ETF
CategoryN/ALarge Growth
IssuerSPDR State Street Global AdvisorsiShares
AUM59.26B35.72B
Avg. Return5.81%16.74%
Div. Yield0.0%0.61%
Expense Ratio0.4%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 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.

GLD’s dividend yield is 0.61% lower than that of IVW (0.0% vs. 0.61%). Also, GLD yielded on average 10.93% less per year over the past decade (5.81% vs. 16.74%). The expense ratio of GLD is 0.22 percentage points higher than IVW’s (0.4% vs. 0.18%).

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Fund Composition

Industry Exposure

GLD vs. IVW - Industry Exposure

GLDIVW
Technology0.0%37.8%
Industrials0.0%5.72%
Energy0.0%0.06%
Communication Services0.0%15.44%
Utilities0.0%0.47%
Healthcare0.0%11.88%
Consumer Defensive0.0%3.84%
Real Estate0.0%1.11%
Financial Services0.0%6.78%
Consumer Cyclical0.0%15.25%
Basic Materials0.0%1.65%

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 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.

IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.

GLD is 37.80% less exposed to the Technology sector than IVW (0.0% vs 37.8%). GLD’s exposure to Industrials and Energy stocks is 5.72% lower and 0.06% lower respectively (0.0% vs. 5.72% and 0.0% vs. 0.06%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 23.14% less of the fund’s holdings compared to IVW (0.00% vs. 23.14%).

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%.

IVW - Holdings

IVW HoldingsWeight
Apple Inc11.46%
Microsoft Corp10.75%
Amazon.com Inc7.14%
Facebook Inc Class A4.28%
Alphabet Inc Class A4.06%
Alphabet Inc Class C3.86%
Tesla Inc2.65%
NVIDIA Corp2.43%
PayPal Holdings Inc1.62%
Adobe Inc1.49%

IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.

Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.

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Risk Analysis

GLDIVW
Mean Return0.211.44
R-squared16.2193.82
Std. Deviation16.5813.77
Alpha3.912.19
Beta0.480.98
Sharpe Ratio0.121.21
Treynor Ratio1.2117.24

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

The iShares S&P 500 Growth ETF (IVW) has a R-squared of 93.82 with a Mean Return of 1.44 and a Treynor Ratio of 17.24. Its Alpha is 2.19 while IVW’s Sharpe Ratio is 1.21. Furthermore, the fund has a Standard Deviation of 13.77 and a Beta of 0.98.

GLD’s Mean Return is 1.23 points lower than that of IVW and its R-squared is 77.61 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than IVW. The Alpha and Beta of GLD are 1.72 points higher and 0.50 points lower than IVW’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. IVW - Annual Returns

YearGLDIVW
202023.68%33.21%
201918.36%30.91%
2018-1.54%-0.17%
201711.41%27.2%
20168.69%6.74%
2015-11.78%5.33%
2014-0.58%14.67%
2013-28.09%32.48%
20125.26%14.39%
201111.2%4.49%
201027.25%14.84%

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 2020 was the strongest year for IVW, returning 33.21% on an annual basis. The poorest year for IVW in the last ten years was 2018, with a yield of -0.17%. Most years the iShares S&P 500 Growth ETF has given investors modest returns, such as in 2012, 2014, and 2010, when gains were 14.39%, 14.67%, and 14.84% respectively.

Portfolio Growth

GLD vs. IVW - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$16,3955.81%
IVW$10,000$51,91516.74%

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 IVW, the end total would have been $51,915. This equates to a $41,915 profit over 11 years and a compound annual growth rate (CAGR) of 16.74%.

GLD’s CAGR is 10.93 percentage points lower than that of IVW and as a result, would have yielded $35,520 less on a $10,000 investment. Thus, GLD performed worse than IVW by 10.93% annually.


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