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GLD vs. IWP: What’s The Difference?

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

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

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

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Summary

GLDIWP
NameSPDR Gold SharesiShares Russell Mid-Cap Growth ETF
CategoryN/AMid-Cap Growth
IssuerSPDR State Street Global AdvisorsiShares
AUM59.26B15.7B
Avg. Return5.81%16.75%
Div. Yield0.0%0.26%
Expense Ratio0.4%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 Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

GLD’s dividend yield is 0.26% lower than that of IWP (0.0% vs. 0.26%). Also, GLD yielded on average 10.94% less per year over the past decade (5.81% vs. 16.75%). The expense ratio of GLD is 0.16 percentage points higher than IWP’s (0.4% vs. 0.24%).

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Fund Composition

Industry Exposure

GLD vs. IWP - Industry Exposure

GLDIWP
Technology0.0%33.88%
Industrials0.0%14.09%
Energy0.0%1.51%
Communication Services0.0%6.32%
Utilities0.0%0.16%
Healthcare0.0%16.79%
Consumer Defensive0.0%2.32%
Real Estate0.0%2.46%
Financial Services0.0%4.52%
Consumer Cyclical0.0%16.09%
Basic Materials0.0%1.86%

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 Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.

IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.

GLD is 33.88% less exposed to the Technology sector than IWP (0.0% vs 33.88%). GLD’s exposure to Industrials and Energy stocks is 14.09% lower and 1.51% lower respectively (0.0% vs. 14.09% and 0.0% vs. 1.51%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 23.07% less of the fund’s holdings compared to IWP (0.00% vs. 23.07%).

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%.

IWP - Holdings

IWP HoldingsWeight
IDEXX Laboratories Inc1.3%
DocuSign Inc1.3%
Roku Inc Class A1.29%
Match Group Inc1.06%
Chipotle Mexican Grill Inc1.06%
Pinterest Inc1.05%
Veeva Systems Inc Class A1.04%
Palantir Technologies Inc Ordinary Shares – Class A1.04%
Lululemon Athletica Inc1.01%
DexCom Inc1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

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Risk Analysis

GLDIWP
Mean Return0.211.27
R-squared16.2187.01
Std. Deviation16.5816.05
Alpha3.91-1.03
Beta0.481.1
Sharpe Ratio0.120.91
Treynor Ratio1.2112.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Sharpe Ratio of 0.91 with a Alpha of -1.03 and a Mean Return of 1.27. Its Standard Deviation is 16.05 while IWP’s Treynor Ratio is 12.98. Furthermore, the fund has a Beta of 1.1 and a R-squared of 87.01.

GLD’s Mean Return is 1.06 points lower than that of IWP and its R-squared is 70.80 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than IWP. The Alpha and Beta of GLD are 4.94 points higher and 0.62 points lower than IWP’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. IWP - Annual Returns

YearGLDIWP
202023.68%35.29%
201918.36%35.14%
2018-1.54%-4.95%
201711.41%24.98%
20168.69%7.15%
2015-11.78%-0.39%
2014-0.58%11.68%
2013-28.09%35.44%
20125.26%15.62%
201111.2%-1.82%
201027.25%26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

GLD vs. IWP - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$16,3955.81%
IWP$10,000$50,19116.75%

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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.

GLD’s CAGR is 10.94 percentage points lower than that of IWP and as a result, would have yielded $33,796 less on a $10,000 investment. Thus, GLD performed worse than IWP by 10.94% annually.


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