The SPDR Gold Shares (GLD) and the Schwab U.S. Large-Cap ETF (SCHX) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and SCHX is a Schwab ETFs Large Blend fund. So, what’s the difference between GLD and SCHX? And which fund is better?
The expense ratio of GLD is 0.37 percentage points higher than SCHX’s (0.4% vs. 0.03%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than SCHX over the past ten years.
In this article, we’ll compare GLD vs. SCHX. We’ll look at fund composition and holdings, as well as at their performance and annual returns. Moreover, I’ll also discuss GLD’s and SCHX’s portfolio growth, risk metrics, and industry exposure and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Schwab U.S. Large-Cap 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 ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.
GLD’s dividend yield is 1.41% lower than that of SCHX (0.0% vs. 1.41%). Also, GLD yielded on average 8.80% less per year over the past decade (5.81% vs. 14.60%). The expense ratio of GLD is 0.37 percentage points higher than SCHX’s (0.4% vs. 0.03%).
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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 ETF (SCHX) has the most exposure to the Technology sector at 25.13%. This is followed by Financial Services and Healthcare at 13.82% and 13.04% respectively. Utilities (2.37%), Energy (2.72%), and Real Estate (3.13%) only make up 8.22% of the fund’s total assets.
SCHX’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.65%, 11.26%, 11.63%, and 13.04%.
GLD is 25.13% less exposed to the Technology sector than SCHX (0.0% vs 25.13%). GLD’s exposure to Industrials and Energy stocks is 8.65% lower and 2.72% lower respectively (0.0% vs. 8.65% and 0.0% vs. 2.72%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 28.58% less of the fund’s holdings compared to SCHX (0.00% vs. 28.58%).
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||2.08%|
|Alphabet Inc A||1.84%|
|Alphabet Inc Class C||1.78%|
|Berkshire Hathaway Inc Class B||1.32%|
|JPMorgan Chase & Co||1.18%|
SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.
Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.
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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 R-squared of 16.21 and a Standard Deviation of 16.58.
The Schwab U.S. Large-Cap ETF (SCHX) has a Sharpe Ratio of 1.03 with a Alpha of -0.14 and a Mean Return of 1.24. Its Treynor Ratio is 14.06 while SCHX’s Standard Deviation is 13.8. Furthermore, the fund has a Beta of 1.02 and a R-squared of 99.83.
GLD’s Mean Return is 1.03 points lower than that of SCHX and its R-squared is 83.62 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than SCHX. The Alpha and Beta of GLD are 4.05 points higher and 0.54 points lower than SCHX’s Alpha and Beta.
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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 SCHX, returning 32.54% on an annual basis. The poorest year for SCHX in the last ten years was 2018, with a yield of -4.52%. Most years the Schwab U.S. Large-Cap ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.33%, 15.88%, and 16.06% 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 SCHX, the end total would have been $36,987. This equates to a $26,987 profit over 10 years and a compound annual growth rate (CAGR) of 14.60%.
GLD’s CAGR is 8.80 percentage points lower than that of SCHX and as a result, would have yielded $24,103 less on a $10,000 investment. Thus, GLD performed worse than SCHX by 8.80% annually.
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