GLD vs. MDY: What’s The Difference?

The SPDR Gold Shares (GLD) and the SPDR S&P MIDCAP 400 ETF Trust (MDY) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund. So, what’s the difference between GLD and MDY? And which fund is better?

The expense ratio of GLD is 0.17 percentage points higher than MDY’s (0.4% vs. 0.23%). GLD also has a lower exposure to the technology sector and a lower standard deviation. Overall, GLD has provided lower returns than MDY over the past ten years.

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

Summary

GLD MDY
Name SPDR Gold Shares SPDR S&P MIDCAP 400 ETF Trust
Category N/A Mid-Cap Blend
Issuer SPDR State Street Global Advisors SPDR State Street Global Advisors
AUM 59.26B 21.31B
Avg. Return 5.81% 13.29%
Div. Yield 0.0% 0.94%
Expense Ratio 0.4% 0.23%

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 SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.

GLD’s dividend yield is 0.94% lower than that of MDY (0.0% vs. 0.94%). Also, GLD yielded on average 7.48% less per year over the past decade (5.81% vs. 13.29%). The expense ratio of GLD is 0.17 percentage points higher than MDY’s (0.4% vs. 0.23%).

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Fund Composition

Industry Exposure

GLD vs. MDY - Industry Exposure

GLD MDY
Technology 0.0% 14.74%
Industrials 0.0% 17.88%
Energy 0.0% 2.52%
Communication Services 0.0% 1.63%
Utilities 0.0% 2.84%
Healthcare 0.0% 11.17%
Consumer Defensive 0.0% 4.2%
Real Estate 0.0% 9.66%
Financial Services 0.0% 15.2%
Consumer Cyclical 0.0% 14.89%
Basic Materials 0.0% 5.27%

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 SPDR S&P MIDCAP 400 ETF Trust (MDY) has the most exposure to the Industrials sector at 17.88%. This is followed by Financial Services and Consumer Cyclical at 15.2% and 14.89% respectively. Energy (2.52%), Utilities (2.84%), and Consumer Defensive (4.2%) only make up 9.56% of the fund’s total assets.

MDY’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Consumer Cyclical stocks at 5.27%, 9.66%, 11.17%, 14.74%, and 14.89%.

GLD is 14.74% less exposed to the Technology sector than MDY (0.0% vs 14.74%). GLD’s exposure to Industrials and Energy stocks is 17.88% lower and 2.52% lower respectively (0.0% vs. 17.88% and 0.0% vs. 2.52%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 39.75% less of the fund’s holdings compared to MDY (0.00% vs. 39.75%).

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%.

MDY - Holdings

MDY Holdings Weight
Bio-Techne Corp 0.75%
Molina Healthcare Inc 0.63%
Cognex Corp 0.63%
Fair Isaac Corp 0.62%
XPO Logistics Inc 0.61%
SolarEdge Technologies Inc 0.61%
Signature Bank 0.6%
Graco Inc 0.55%
Camden Property Trust 0.55%
FactSet Research Systems Inc 0.54%

MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.

SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.

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Risk Analysis

GLD MDY
Mean Return 0.21 1.08
R-squared 16.21 86.66
Std. Deviation 16.58 16.83
Alpha 3.91 -4.1
Beta 0.48 1.15
Sharpe Ratio 0.12 0.73
Treynor Ratio 1.21 9.97

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

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Treynor Ratio of 9.97 with a R-squared of 86.66 and a Sharpe Ratio of 0.73. Its Standard Deviation is 16.83 while MDY’s Mean Return is 1.08. Furthermore, the fund has a Beta of 1.15 and a Alpha of -4.1.

GLD’s Mean Return is 0.87 points lower than that of MDY and its R-squared is 70.45 points lower. With a Standard Deviation of 16.58, GLD is slightly less volatile than MDY. The Alpha and Beta of GLD are 8.01 points higher and 0.67 points lower than MDY’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. MDY - Annual Returns

Year GLD MDY
2020 23.68% 13.51%
2019 18.36% 25.86%
2018 -1.54% -11.28%
2017 11.41% 15.89%
2016 8.69% 20.33%
2015 -11.78% -2.4%
2014 -0.58% 9.42%
2013 -28.09% 33.08%
2012 5.26% 17.58%
2011 11.2% -1.99%
2010 27.25% 26.17%

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 MDY, returning 33.08% on an annual basis. The poorest year for MDY in the last ten years was 2018, with a yield of -11.28%. Most years the SPDR S&P MIDCAP 400 ETF Trust has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.51%, 15.89%, and 17.58% respectively.

Portfolio Growth

GLD vs. MDY - Portfolio Growth

Fund Initial Balance Final Balance CAGR
GLD $10,000 $16,395 5.81%
MDY $10,000 $36,524 13.29%

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 MDY, the end total would have been $36,524. This equates to a $26,524 profit over 11 years and a compound annual growth rate (CAGR) of 13.29%.

GLD’s CAGR is 7.48 percentage points lower than that of MDY and as a result, would have yielded $20,129 less on a $10,000 investment. Thus, GLD performed worse than MDY by 7.48% annually.


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