GLD vs. MTUM: What’s The Difference?

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

The expense ratio of GLD is 0.25 percentage points higher than MTUM’s (0.4% vs. 0.15%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than MTUM over the past ten years.

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

Summary

GLD MTUM
Name SPDR Gold Shares iShares MSCI USA Momentum Factor ETF
Category N/A Large Growth
Issuer SPDR State Street Global Advisors iShares
AUM 59.26B 14.53B
Avg. Return 5.81% 17.37%
Div. Yield 0.0% 0.44%
Expense Ratio 0.4% 0.15%

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 MSCI USA Momentum Factor ETF (MTUM) is a Large Growth fund that is issued by iShares. It currently has 14.53B total assets under management and has yielded an average annual return of 17.37% over the past 10 years. The fund has a dividend yield of 0.44% with an expense ratio of 0.15%.

GLD’s dividend yield is 0.44% lower than that of MTUM (0.0% vs. 0.44%). Also, GLD yielded on average 11.56% less per year over the past decade (5.81% vs. 17.37%). The expense ratio of GLD is 0.25 percentage points higher than MTUM’s (0.4% vs. 0.15%).

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Fund Composition

Industry Exposure

GLD vs. MTUM - Industry Exposure

GLD MTUM
Technology 0.0% 15.24%
Industrials 0.0% 12.47%
Energy 0.0% 1.77%
Communication Services 0.0% 13.18%
Utilities 0.0% 0.19%
Healthcare 0.0% 6.41%
Consumer Defensive 0.0% 2.88%
Real Estate 0.0% 0.43%
Financial Services 0.0% 34.32%
Consumer Cyclical 0.0% 9.96%
Basic Materials 0.0% 3.15%

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 MSCI USA Momentum Factor ETF (MTUM) has the most exposure to the Financial Services sector at 34.32%. This is followed by Technology and Communication Services at 15.24% and 13.18% respectively. Real Estate (0.43%), Energy (1.77%), and Consumer Defensive (2.88%) only make up 5.08% of the fund’s total assets.

MTUM’s mid-section with moderate exposure is comprised of Basic Materials, Healthcare, Consumer Cyclical, Industrials, and Communication Services stocks at 3.15%, 6.41%, 9.96%, 12.47%, and 13.18%.

GLD is 15.24% less exposed to the Technology sector than MTUM (0.0% vs 15.24%). GLD’s exposure to Industrials and Energy stocks is 12.47% lower and 1.77% lower respectively (0.0% vs. 12.47% and 0.0% vs. 1.77%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 44.71% less of the fund’s holdings compared to MTUM (0.00% vs. 44.71%).

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%.

MTUM - Holdings

MTUM Holdings Weight
Tesla Inc 5.63%
The Walt Disney Co 4.39%
JPMorgan Chase & Co 4.35%
Berkshire Hathaway Inc Class B 4.34%
Bank of America Corp 3.81%
PayPal Holdings Inc 3.76%
Wells Fargo & Co 3.05%
Applied Materials Inc 3.05%
Moderna Inc 2.89%
Alphabet Inc Class C 2.84%

MTUM’s Top Holdings are Tesla Inc, The Walt Disney Co, JPMorgan Chase & Co, Berkshire Hathaway Inc Class B, and Bank of America Corp at 5.63%, 4.39%, 4.35%, 4.34%, and 3.81%.

PayPal Holdings Inc (3.76%), Wells Fargo & Co (3.05%), and Applied Materials Inc (3.05%) have a slightly smaller but still significant weight. Moderna Inc and Alphabet Inc Class C are also represented in the MTUM’s holdings at 2.89% and 2.84%.

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Risk Analysis

GLD MTUM
Mean Return 0.21 0
R-squared 16.21 0
Std. Deviation 16.58 0
Alpha 3.91 0
Beta 0.48 0
Sharpe Ratio 0.12 0
Treynor Ratio 1.21 0

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

The iShares MSCI USA Momentum Factor ETF (MTUM) has a Standard Deviation of 0 with a Sharpe Ratio of 0 and a R-squared of 0. Its Mean Return is 0 while MTUM’s Treynor Ratio is 0. Furthermore, the fund has a Beta of 0 and a Alpha of 0.

GLD’s Mean Return is 0.21 points higher than that of MTUM and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than MTUM. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than MTUM’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. MTUM - Annual Returns

Year GLD MTUM
2020 23.68% 29.69%
2019 18.36% 27.57%
2018 -1.54% -1.77%
2017 11.41% 37.6%
2016 8.69% 4.89%
2015 -11.78% 9.12%
2014 -0.58% 14.48%
2013 -28.09% 0.0%
2012 5.26% 0.0%
2011 11.2% 0.0%
2010 27.25% 0.0%

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 2017 was the strongest year for MTUM, returning 37.6% on an annual basis. The poorest year for MTUM in the last ten years was 2018, with a yield of -1.77%. Most years the iShares MSCI USA Momentum Factor ETF has given investors modest returns, such as in 2010, 2016, and 2015, when gains were 0.0%, 4.89%, and 9.12% respectively.

Portfolio Growth

GLD vs. MTUM - Portfolio Growth

Fund Initial Balance Final Balance CAGR
GLD $10,000 $15,308 5.81%
MTUM $10,000 $29,301 17.37%

A $10,000 investment in GLD would have resulted in a final balance of $15,308. This is a profit of $5,308 over 7 years and amounts to a compound annual growth rate (CAGR) of 5.81%.

With a $10,000 investment in MTUM, the end total would have been $29,301. This equates to a $19,301 profit over 7 years and a compound annual growth rate (CAGR) of 17.37%.

GLD’s CAGR is 11.56 percentage points lower than that of MTUM and as a result, would have yielded $13,993 less on a $10,000 investment. Thus, GLD performed worse than MTUM by 11.56% annually.


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