The SPDR Gold Shares (GLD) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VBK is a Vanguard Small Growth fund. So, what’s the difference between GLD and VBK? And which fund is better?
The expense ratio of GLD is 0.33 percentage points higher than VBK’s (0.4% vs. 0.07%). GLD also has a lower exposure to the technology sector and a lower standard deviation. Overall, GLD has provided lower returns than VBK over the past ten years.
In this article, we’ll compare GLD vs. VBK. We’ll look at fund composition and performance, as well as at their risk metrics and holdings. Moreover, I’ll also discuss GLD’s and VBK’s industry exposure, annual returns, and portfolio growth and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Small-Cap Growth Index Fund ETF Shares|
|Issuer||SPDR State Street Global Advisors||Vanguard|
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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.
GLD’s dividend yield is 0.45% lower than that of VBK (0.0% vs. 0.45%). Also, GLD yielded on average 10.72% less per year over the past decade (5.81% vs. 16.53%). The expense ratio of GLD is 0.33 percentage points higher than VBK’s (0.4% vs. 0.07%).
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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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has the most exposure to the Technology sector at 27.87%. This is followed by Healthcare and Industrials at 23.24% and 13.19% respectively. Energy (1.77%), Basic Materials (2.49%), and Communication Services (3.24%) only make up 7.50% of the fund’s total assets.
VBK’s mid-section with moderate exposure is comprised of Consumer Defensive, Financial Services, Real Estate, Consumer Cyclical, and Industrials stocks at 3.83%, 4.05%, 7.87%, 12.13%, and 13.19%.
GLD is 27.87% less exposed to the Technology sector than VBK (0.0% vs 27.87%). GLD’s exposure to Industrials and Energy stocks is 13.19% lower and 1.77% lower respectively (0.0% vs. 13.19% and 0.0% vs. 1.77%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 24.05% less of the fund’s holdings compared to VBK (0.00% vs. 24.05%).
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%.
|Charles River Laboratories International Inc||0.78%|
|Fair Isaac Corp||0.57%|
|Bill.com Holdings Inc Ordinary Shares||0.56%|
VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.
Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.
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The SPDR Gold Shares (GLD) has a Mean Return of 0.21 with a Alpha of 3.91 and a Treynor Ratio of 1.21. Its R-squared is 16.21 while GLD’s Standard Deviation is 16.58. Furthermore, the fund has a Beta of 0.48 and a Sharpe Ratio of 0.12.
The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a Alpha of -2.81 with a Beta of 1.18 and a Standard Deviation of 17.95. Its Sharpe Ratio is 0.78 while VBK’s Mean Return is 1.22. Furthermore, the fund has a R-squared of 80.56 and a Treynor Ratio of 11.18.
GLD’s Mean Return is 1.01 points lower than that of VBK and its R-squared is 64.35 points lower. With a Standard Deviation of 16.58, GLD is slightly less volatile than VBK. The Alpha and Beta of GLD are 6.72 points higher and 0.70 points lower than VBK’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 VBK, returning 38.18% on an annual basis. The poorest year for VBK in the last ten years was 2018, with a yield of -5.68%. Most years the Vanguard Small-Cap Growth Index Fund ETF Shares has given investors modest returns, such as in 2016, 2012, and 2017, when gains were 10.74%, 17.67%, and 21.9% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 VBK, the end total would have been $48,639. This equates to a $38,639 profit over 11 years and a compound annual growth rate (CAGR) of 16.53%.
GLD’s CAGR is 10.72 percentage points lower than that of VBK and as a result, would have yielded $32,244 less on a $10,000 investment. Thus, GLD performed worse than VBK by 10.72% annually.
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