GLD vs. IWN: What’s The Difference?

The SPDR Gold Shares (GLD) and the iShares Russell 2000 Value ETF (IWN) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and IWN is a iShares Small Value fund. So, what’s the difference between GLD and IWN? And which fund is better?

The expense ratio of GLD is 0.16 percentage points higher than IWN’s (0.4% vs. 0.24%). GLD also has a lower exposure to the technology sector and a lower standard deviation. Overall, GLD has provided lower returns than IWN over the past ten years.

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

Summary

GLD IWN
Name SPDR Gold Shares iShares Russell 2000 Value ETF
Category N/A Small Value
Issuer SPDR State Street Global Advisors iShares
AUM 59.26B 15.48B
Avg. Return 5.81% 10.96%
Div. Yield 0.0% 1.26%
Expense Ratio 0.4% 0.24%

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 Russell 2000 Value ETF (IWN) is a Small Value fund that is issued by iShares. It currently has 15.48B total assets under management and has yielded an average annual return of 10.96% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.24%.

GLD’s dividend yield is 1.26% lower than that of IWN (0.0% vs. 1.26%). Also, GLD yielded on average 5.16% less per year over the past decade (5.81% vs. 10.96%). The expense ratio of GLD is 0.16 percentage points higher than IWN’s (0.4% vs. 0.24%).

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Fund Composition

Industry Exposure

GLD vs. IWN - Industry Exposure

GLD IWN
Technology 0.0% 6.02%
Industrials 0.0% 14.58%
Energy 0.0% 5.84%
Communication Services 0.0% 4.17%
Utilities 0.0% 4.69%
Healthcare 0.0% 10.94%
Consumer Defensive 0.0% 3.77%
Real Estate 0.0% 14.36%
Financial Services 0.0% 22.97%
Consumer Cyclical 0.0% 8.39%
Basic Materials 0.0% 4.29%

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 Russell 2000 Value ETF (IWN) has the most exposure to the Financial Services sector at 22.97%. This is followed by Industrials and Real Estate at 14.58% and 14.36% respectively. Communication Services (4.17%), Basic Materials (4.29%), and Utilities (4.69%) only make up 13.15% of the fund’s total assets.

IWN’s mid-section with moderate exposure is comprised of Energy, Technology, Consumer Cyclical, Healthcare, and Real Estate stocks at 5.84%, 6.02%, 8.39%, 10.94%, and 14.36%.

GLD is 6.02% less exposed to the Technology sector than IWN (0.0% vs 6.02%). GLD’s exposure to Industrials and Energy stocks is 14.58% lower and 5.84% lower respectively (0.0% vs. 14.58% and 0.0% vs. 5.84%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 45.72% less of the fund’s holdings compared to IWN (0.00% vs. 45.72%).

Holdings

GLD - 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%.

IWN - Holdings

IWN Holdings Weight
AMC Entertainment Holdings Inc Class A 1.06%
Tenet Healthcare Corp 0.47%
Stag Industrial Inc 0.47%
Ovintiv Inc 0.45%
EMCOR Group Inc 0.42%
Valley National Bancorp 0.37%
Chesapeake Energy Corp Ordinary Shares – New 0.37%
Agree Realty Corp 0.36%
Macy’s Inc 0.35%
Essent Group Ltd 0.35%

IWN’s Top Holdings are AMC Entertainment Holdings Inc Class A, Tenet Healthcare Corp, Stag Industrial Inc, Ovintiv Inc, and EMCOR Group Inc at 1.06%, 0.47%, 0.47%, 0.45%, and 0.42%.

Valley National Bancorp (0.37%), Chesapeake Energy Corp Ordinary Shares – New (0.37%), and Agree Realty Corp (0.36%) have a slightly smaller but still significant weight. Macy’s Inc and Essent Group Ltd are also represented in the IWN’s holdings at 0.35% and 0.35%.

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Risk Analysis

GLD IWN
Mean Return 0.21 1.01
R-squared 16.21 72.64
Std. Deviation 16.58 19.28
Alpha 3.91 -6.32
Beta 0.48 1.21
Sharpe Ratio 0.12 0.59
Treynor Ratio 1.21 8.3

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

The iShares Russell 2000 Value ETF (IWN) has a Beta of 1.21 with a Standard Deviation of 19.28 and a R-squared of 72.64. Its Mean Return is 1.01 while IWN’s Alpha is -6.32. Furthermore, the fund has a Treynor Ratio of 8.3 and a Sharpe Ratio of 0.59.

GLD’s Mean Return is 0.80 points lower than that of IWN and its R-squared is 56.43 points lower. With a Standard Deviation of 16.58, GLD is slightly less volatile than IWN. The Alpha and Beta of GLD are 10.23 points higher and 0.73 points lower than IWN’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. IWN - Annual Returns

Year GLD IWN
2020 23.68% 4.5%
2019 18.36% 22.17%
2018 -1.54% -12.94%
2017 11.41% 7.73%
2016 8.69% 31.64%
2015 -11.78% -7.53%
2014 -0.58% 4.13%
2013 -28.09% 34.3%
2012 5.26% 17.92%
2011 11.2% -5.64%
2010 27.25% 24.29%

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 IWN, returning 34.3% on an annual basis. The poorest year for IWN in the last ten years was 2018, with a yield of -12.94%. Most years the iShares Russell 2000 Value ETF has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 4.5%, 7.73%, and 17.92% respectively.

Portfolio Growth

GLD vs. IWN - Portfolio Growth

Fund Initial Balance Final Balance CAGR
GLD $10,000 $16,395 5.81%
IWN $10,000 $28,189 10.96%

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 IWN, the end total would have been $28,189. This equates to a $18,189 profit over 11 years and a compound annual growth rate (CAGR) of 10.96%.

GLD’s CAGR is 5.16 percentage points lower than that of IWN and as a result, would have yielded $11,794 less on a $10,000 investment. Thus, GLD performed worse than IWN by 5.16% annually.


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