The SPDR Gold Shares (GLD) and the Schwab U.S. Large-Cap Growth ETF (SCHG) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and SCHG is a Schwab ETFs Large Growth fund. So, what’s the difference between GLD and SCHG? And which fund is better?
The expense ratio of GLD is 0.36 percentage points higher than SCHG’s (0.4% vs. 0.04%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than SCHG over the past ten years.
In this article, we’ll compare GLD vs. SCHG. We’ll look at holdings and fund composition, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss GLD’s and SCHG’s performance, annual returns, and risk metrics and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Schwab U.S. Large-Cap Growth ETF|
|Issuer||SPDR State Street Global Advisors||Schwab ETFs|
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. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.
GLD’s dividend yield is 0.43% lower than that of SCHG (0.0% vs. 0.43%). Also, GLD yielded on average 12.00% less per year over the past decade (5.81% vs. 17.81%). The expense ratio of GLD is 0.36 percentage points higher than SCHG’s (0.4% vs. 0.04%).
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 Schwab U.S. Large-Cap Growth ETF (SCHG) has the most exposure to the Technology sector at 39.21%. This is followed by Communication Services and Consumer Cyclical at 17.07% and 15.01% respectively. Energy (0.2%), Real Estate (1.64%), and Basic Materials (1.68%) only make up 3.52% of the fund’s total assets.
SCHG’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 2.15%, 3.01%, 7.98%, 12.05%, and 15.01%.
GLD is 39.21% less exposed to the Technology sector than SCHG (0.0% vs 39.21%). GLD’s exposure to Industrials and Energy stocks is 3.01% lower and 0.20% lower respectively (0.0% vs. 3.01% and 0.0% vs. 0.2%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 24.63% less of the fund’s holdings compared to SCHG (0.00% vs. 24.63%).
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%.
|Facebook Inc A||4.45%|
|Alphabet Inc A||3.93%|
|Alphabet Inc Class C||3.82%|
|Visa Inc Class A||2.12%|
|UnitedHealth Group Inc||2.02%|
SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.
Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.
The SPDR Gold Shares (GLD) has a R-squared of 16.21 with a Beta of 0.48 and a Standard Deviation of 16.58. Its Sharpe Ratio is 0.12 while GLD’s Alpha is 3.91. Furthermore, the fund has a Mean Return of 0.21 and a Treynor Ratio of 1.21.
The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Treynor Ratio of 16.3 with a Standard Deviation of 14.78 and a Alpha of 1.97. Its Mean Return is 1.46 while SCHG’s Beta is 1.05. Furthermore, the fund has a R-squared of 92.92 and a Sharpe Ratio of 1.14.
GLD’s Mean Return is 1.25 points lower than that of SCHG and its R-squared is 76.71 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than SCHG. The Alpha and Beta of GLD are 1.94 points higher and 0.57 points lower than SCHG’s Alpha and Beta.
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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $12,884. This is a profit of $2,884 over 10 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in SCHG, the end total would have been $47,556. This equates to a $37,556 profit over 10 years and a compound annual growth rate (CAGR) of 17.81%.
GLD’s CAGR is 12.00 percentage points lower than that of SCHG and as a result, would have yielded $34,672 less on a $10,000 investment. Thus, GLD performed worse than SCHG by 12.00% annually.
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