The SPDR Gold Shares (GLD) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and RSP is a Invesco Large Blend fund. So, what’s the difference between GLD and RSP? And which fund is better?
The expense ratio of GLD is 0.20 percentage points higher than RSP’s (0.4% vs. 0.2%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than RSP over the past ten years.
In this article, we’ll compare GLD vs. RSP. We’ll look at performance and fund composition, as well as at their industry exposure and holdings. Moreover, I’ll also discuss GLD’s and RSP’s portfolio growth, annual returns, and risk metrics and examine how these affect their overall returns.
Summary
| GLD | RSP | |
| Name | SPDR Gold Shares | Invesco S&P 500 Equal Weight ETF |
| Category | N/A | Large Blend |
| Issuer | SPDR State Street Global Advisors | Invesco |
| AUM | 59.26B | 28.62B |
| Avg. Return | 5.81% | 13.79% |
| Div. Yield | 0.0% | 1.31% |
| Expense Ratio | 0.4% | 0.2% |
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 Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
GLD’s dividend yield is 1.31% lower than that of RSP (0.0% vs. 1.31%). Also, GLD yielded on average 7.98% less per year over the past decade (5.81% vs. 13.79%). The expense ratio of GLD is 0.20 percentage points higher than RSP’s (0.4% vs. 0.2%).
Fund Composition
Industry Exposure
| GLD | RSP | |
| Technology | 0.0% | 14.73% |
| Industrials | 0.0% | 14.62% |
| Energy | 0.0% | 3.9% |
| Communication Services | 0.0% | 4.31% |
| Utilities | 0.0% | 5.58% |
| Healthcare | 0.0% | 13.69% |
| Consumer Defensive | 0.0% | 6.86% |
| Real Estate | 0.0% | 5.84% |
| Financial Services | 0.0% | 13.43% |
| Consumer Cyclical | 0.0% | 13.01% |
| Basic Materials | 0.0% | 4.04% |
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 Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.
RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.
GLD is 14.73% less exposed to the Technology sector than RSP (0.0% vs 14.73%). GLD’s exposure to Industrials and Energy stocks is 14.62% lower and 3.90% lower respectively (0.0% vs. 14.62% and 0.0% vs. 3.9%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 32.28% less of the fund’s holdings compared to RSP (0.00% vs. 32.28%).
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%.
| RSP Holdings | Weight |
| Chipotle Mexican Grill Inc | 0.27% |
| Nike Inc Class B | 0.25% |
| MSCI Inc | 0.25% |
| Monolithic Power Systems Inc | 0.25% |
| Enphase Energy Inc | 0.25% |
| Advanced Micro Devices Inc | 0.25% |
| ResMed Inc | 0.24% |
| PerkinElmer Inc | 0.24% |
| IDEXX Laboratories Inc | 0.24% |
| Danaher Corp | 0.24% |
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
Risk Analysis
| GLD | RSP | |
| Mean Return | 0.21 | 1.19 |
| R-squared | 16.21 | 94.47 |
| Std. Deviation | 16.58 | 15.36 |
| Alpha | 3.91 | -2.45 |
| Beta | 0.48 | 1.1 |
| Sharpe Ratio | 0.12 | 0.89 |
| Treynor Ratio | 1.21 | 12.12 |
The SPDR Gold Shares (GLD) has a Treynor Ratio of 1.21 with a Beta of 0.48 and a Alpha of 3.91. Its Mean Return is 0.21 while GLD’s Sharpe Ratio is 0.12. Furthermore, the fund has a Standard Deviation of 16.58 and a R-squared of 16.21.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Beta of 1.1 with a Alpha of -2.45 and a Sharpe Ratio of 0.89. Its Treynor Ratio is 12.12 while RSP’s Mean Return is 1.19. Furthermore, the fund has a R-squared of 94.47 and a Standard Deviation of 15.36.
GLD’s Mean Return is 0.98 points lower than that of RSP and its R-squared is 78.26 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than RSP. The Alpha and Beta of GLD are 6.36 points higher and 0.62 points lower than RSP’s Alpha and Beta.
Performance
Annual Returns
| Year | GLD | RSP |
| 2020 | 23.68% | 12.75% |
| 2019 | 18.36% | 28.94% |
| 2018 | -1.54% | -7.77% |
| 2017 | 11.41% | 18.52% |
| 2016 | 8.69% | 14.34% |
| 2015 | -11.78% | -2.57% |
| 2014 | -0.58% | 14.02% |
| 2013 | -28.09% | 35.6% |
| 2012 | 5.26% | 17.04% |
| 2011 | 11.2% | -0.5% |
| 2010 | 27.25% | 21.3% |
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 RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| GLD | $10,000 | $16,395 | 5.81% |
| RSP | $10,000 | $38,664 | 13.79% |
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 RSP, the end total would have been $38,664. This equates to a $28,664 profit over 11 years and a compound annual growth rate (CAGR) of 13.79%.
GLD’s CAGR is 7.98 percentage points lower than that of RSP and as a result, would have yielded $22,269 less on a $10,000 investment. Thus, GLD performed worse than RSP by 7.98% annually.
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