Skip to content

GLD vs. SCHD: What’s The Difference?

The SPDR Gold Shares (GLD) and the Schwab U.S. Dividend Equity ETF (SCHD) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and SCHD is a Schwab ETFs Large Value fund. So, what’s the difference between GLD and SCHD? And which fund is better?

The expense ratio of GLD is 0.34 percentage points higher than SCHD’s (0.4% vs. 0.06%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than SCHD over the past ten years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

GLDSCHD
NameSPDR Gold SharesSchwab U.S. Dividend Equity ETF
CategoryN/ALarge Value
IssuerSPDR State Street Global AdvisorsSchwab ETFs
AUM59.26B26B
Avg. Return5.81%14.80%
Div. Yield0.0%2.89%
Expense Ratio0.4%0.06%

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 Schwab U.S. Dividend Equity ETF (SCHD) is a Large Value fund that is issued by Schwab ETFs. It currently has 26B total assets under management and has yielded an average annual return of 14.80% over the past 10 years. The fund has a dividend yield of 2.89% with an expense ratio of 0.06%.

GLD’s dividend yield is 2.89% lower than that of SCHD (0.0% vs. 2.89%). Also, GLD yielded on average 9.00% less per year over the past decade (5.81% vs. 14.80%). The expense ratio of GLD is 0.34 percentage points higher than SCHD’s (0.4% vs. 0.06%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Industry Exposure

GLD vs. SCHD - Industry Exposure

GLDSCHD
Technology0.0%16.26%
Industrials0.0%18.05%
Energy0.0%1.87%
Communication Services0.0%4.96%
Utilities0.0%0.0%
Healthcare0.0%12.64%
Consumer Defensive0.0%14.04%
Real Estate0.0%0.0%
Financial Services0.0%21.69%
Consumer Cyclical0.0%8.36%
Basic Materials0.0%2.13%

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 Schwab U.S. Dividend Equity ETF (SCHD) has the most exposure to the Financial Services sector at 21.69%. This is followed by Industrials and Technology at 18.05% and 16.26% respectively. Utilities (0.0%), Energy (1.87%), and Basic Materials (2.13%) only make up 4.00% of the fund’s total assets.

SCHD’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Healthcare, Consumer Defensive, and Technology stocks at 4.96%, 8.36%, 12.64%, 14.04%, and 16.26%.

GLD is 16.26% less exposed to the Technology sector than SCHD (0.0% vs 16.26%). GLD’s exposure to Industrials and Energy stocks is 18.05% lower and 1.87% lower respectively (0.0% vs. 18.05% and 0.0% vs. 1.87%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 30.05% less of the fund’s holdings compared to SCHD (0.00% vs. 30.05%).

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%.

SCHD - Holdings

SCHD HoldingsWeight
Merck & Co Inc4.24%
The Home Depot Inc4.19%
Texas Instruments Inc4.16%
Broadcom Inc4.15%
Amgen Inc4.11%
PepsiCo Inc4.09%
BlackRock Inc4.05%
Pfizer Inc3.97%
Verizon Communications Inc3.96%
Cisco Systems Inc3.96%

SCHD’s Top Holdings are Merck & Co Inc, The Home Depot Inc, Texas Instruments Inc, Broadcom Inc, and Amgen Inc at 4.24%, 4.19%, 4.16%, 4.15%, and 4.11%.

PepsiCo Inc (4.09%), BlackRock Inc (4.05%), and Pfizer Inc (3.97%) have a slightly smaller but still significant weight. Verizon Communications Inc and Cisco Systems Inc are also represented in the SCHD’s holdings at 3.96% and 3.96%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

GLDSCHD
Mean Return0.210
R-squared16.210
Std. Deviation16.580
Alpha3.910
Beta0.480
Sharpe Ratio0.120
Treynor Ratio1.210

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

The Schwab U.S. Dividend Equity ETF (SCHD) has a Standard Deviation of 0 with a Beta of 0 and a R-squared of 0. Its Mean Return is 0 while SCHD’s Treynor Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Sharpe Ratio of 0.

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

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

GLD vs. SCHD - Annual Returns

YearGLDSCHD
202023.68%15.11%
201918.36%27.28%
2018-1.54%-5.46%
201711.41%20.88%
20168.69%16.25%
2015-11.78%-0.21%
2014-0.58%11.66%
2013-28.09%32.9%
20125.26%11.4%
201111.2%0.0%
201027.25%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 2013 was the strongest year for SCHD, returning 32.9% on an annual basis. The poorest year for SCHD in the last ten years was 2018, with a yield of -5.46%. Most years the Schwab U.S. Dividend Equity ETF has given investors modest returns, such as in 2012, 2014, and 2020, when gains were 11.4%, 11.66%, and 15.11% respectively.

Portfolio Growth

GLD vs. SCHD - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$11,0075.81%
SCHD$10,000$28,82314.80%

A $10,000 investment in GLD would have resulted in a final balance of $11,007. This is a profit of $1,007 over 8 years and amounts to a compound annual growth rate (CAGR) of 5.81%.

With a $10,000 investment in SCHD, the end total would have been $28,823. This equates to a $18,823 profit over 8 years and a compound annual growth rate (CAGR) of 14.80%.

GLD’s CAGR is 9.00 percentage points lower than that of SCHD and as a result, would have yielded $17,816 less on a $10,000 investment. Thus, GLD performed worse than SCHD by 9.00% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.