The SPDR Gold Shares (GLD) and the Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VEU is a Vanguard Foreign Large Blend fund. So, what’s the difference between GLD and VEU? And which fund is better?
The expense ratio of GLD is 0.32 percentage points higher than VEU’s (0.4% vs. 0.08%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than VEU over the past ten years.
In this article, we’ll compare GLD vs. VEU. We’ll look at annual returns and portfolio growth, as well as at their performance and industry exposure. Moreover, I’ll also discuss GLD’s and VEU’s risk metrics, holdings, and fund composition and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard FTSE All-World ex-US Index Fund ETF Shares|
|Category||N/A||Foreign Large Blend|
|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 FTSE All-World ex-US Index Fund ETF Shares (VEU) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 53.64B total assets under management and has yielded an average annual return of 6.64% over the past 10 years. The fund has a dividend yield of 2.31% with an expense ratio of 0.08%.
GLD’s dividend yield is 2.31% lower than that of VEU (0.0% vs. 2.31%). Also, GLD yielded on average 0.83% less per year over the past decade (5.81% vs. 6.64%). The expense ratio of GLD is 0.32 percentage points higher than VEU’s (0.4% vs. 0.08%).
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 FTSE All-World ex-US Index Fund ETF Shares (VEU) has the most exposure to the Financial Services sector at 18.46%. This is followed by Technology and Consumer Cyclical at 12.94% and 12.57% respectively. Real Estate (3.04%), Energy (4.69%), and Communication Services (7.44%) only make up 15.17% of the fund’s total assets.
VEU’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Healthcare, Industrials, and Consumer Cyclical stocks at 8.17%, 8.28%, 9.34%, 12.19%, and 12.57%.
GLD is 12.94% less exposed to the Technology sector than VEU (0.0% vs 12.94%). GLD’s exposure to Industrials and Energy stocks is 12.19% lower and 4.69% lower respectively (0.0% vs. 12.19% and 0.0% vs. 4.69%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 34.07% less of the fund’s holdings compared to VEU (0.00% vs. 34.07%).
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%.
|Tencent Holdings Ltd||1.57%|
|Alibaba Group Holding Ltd Ordinary Shares||1.4%|
|Taiwan Semiconductor Manufacturing Co Ltd||0.98%|
|ASML Holding NV||0.95%|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||0.91%|
|Roche Holding AG||0.91%|
|Toyota Motor Corp||0.75%|
|LVMH Moet Hennessy Louis Vuitton SE||0.68%|
VEU’s Top Holdings are Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, Taiwan Semiconductor Manufacturing Co Ltd, and ASML Holding NV at 1.57%, 1.4%, 1.22%, 0.98%, and 0.95%.
Taiwan Semiconductor Manufacturing Co Ltd ADR (0.91%), Roche Holding AG (0.91%), and Toyota Motor Corp (0.75%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VEU’s holdings at 0.68% and 0.67%.
The SPDR Gold Shares (GLD) has a Mean Return of 0.21 with a Alpha of 3.91 and a Beta of 0.48. Its R-squared is 16.21 while GLD’s Sharpe Ratio is 0.12. Furthermore, the fund has a Treynor Ratio of 1.21 and a Standard Deviation of 16.58.
The Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU) has a Treynor Ratio of 5.12 with a Standard Deviation of 15.08 and a Beta of 0.99. Its Sharpe Ratio is 0.4 while VEU’s R-squared is 98.44. Furthermore, the fund has a Alpha of 0.28 and a Mean Return of 0.56.
GLD’s Mean Return is 0.35 points lower than that of VEU and its R-squared is 82.23 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than VEU. The Alpha and Beta of GLD are 3.63 points higher and 0.51 points lower than VEU’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 2017 was the strongest year for VEU, returning 27.27% on an annual basis. The poorest year for VEU in the last ten years was 2011, with a yield of -14.25%. Most years the Vanguard FTSE All-World ex-US Index Fund ETF Shares has given investors modest returns, such as in 2016, 2020, and 2010, when gains were 4.77%, 11.39%, and 11.85% 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 VEU, the end total would have been $18,507. This equates to a $8,507 profit over 11 years and a compound annual growth rate (CAGR) of 6.64%.
GLD’s CAGR is 0.83 percentage points lower than that of VEU and as a result, would have yielded $2,112 less on a $10,000 investment. Thus, GLD performed worse than VEU by 0.83% annually.
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