The SPDR Gold Shares (GLD) and the Vanguard Mid-Cap Index Fund ETF Shares (VO) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VO is a Vanguard Mid-Cap Blend fund. So, what’s the difference between GLD and VO? And which fund is better?
The expense ratio of GLD is 0.36 percentage points higher than VO’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 VO over the past ten years.
In this article, we’ll compare GLD vs. VO. We’ll look at annual returns and industry exposure, as well as at their fund composition and performance. Moreover, I’ll also discuss GLD’s and VO’s risk metrics, holdings, and portfolio growth and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Mid-Cap 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 Mid-Cap Index Fund ETF Shares (VO) is a Mid-Cap Blend fund that is issued by Vanguard. It currently has 154.08B total assets under management and has yielded an average annual return of 14.34% over the past 10 years. The fund has a dividend yield of 1.23% with an expense ratio of 0.04%.
GLD’s dividend yield is 1.23% lower than that of VO (0.0% vs. 1.23%). Also, GLD yielded on average 8.53% less per year over the past decade (5.81% vs. 14.34%). The expense ratio of GLD is 0.36 percentage points higher than VO’s (0.4% vs. 0.04%).
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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 Mid-Cap Index Fund ETF Shares (VO) has the most exposure to the Technology sector at 22.01%. This is followed by Healthcare and Consumer Cyclical at 13.03% and 12.12% respectively. Basic Materials (3.36%), Energy (3.82%), and Utilities (5.12%) only make up 12.30% of the fund’s total assets.
VO’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Financial Services, Industrials, and Consumer Cyclical stocks at 5.61%, 8.67%, 11.08%, 11.92%, and 12.12%.
GLD is 22.01% less exposed to the Technology sector than VO (0.0% vs 22.01%). GLD’s exposure to Industrials and Energy stocks is 11.92% lower and 3.82% lower respectively (0.0% vs. 11.92% and 0.0% vs. 3.82%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 31.87% less of the fund’s holdings compared to VO (0.00% vs. 31.87%).
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%.
|IDEXX Laboratories Inc||0.78%|
|Marvell Technology Inc||0.68%|
|IQVIA Holdings Inc||0.68%|
|Chipotle Mexican Grill Inc||0.63%|
|Veeva Systems Inc Class A||0.62%|
|Digital Realty Trust Inc||0.62%|
|Carrier Global Corp Ordinary Shares||0.61%|
VO’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Marvell Technology Inc, IQVIA Holdings Inc, and Chipotle Mexican Grill Inc at 0.78%, 0.75%, 0.68%, 0.68%, and 0.63%.
Veeva Systems Inc Class A (0.62%), Digital Realty Trust Inc (0.62%), and Centene Corp (0.62%) have a slightly smaller but still significant weight. Aptiv PLC and Carrier Global Corp Ordinary Shares are also represented in the VO’s holdings at 0.62% and 0.61%.
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The SPDR Gold Shares (GLD) has a Standard Deviation of 16.58 with a R-squared of 16.21 and a Beta of 0.48. Its Treynor Ratio is 1.21 while GLD’s Sharpe Ratio is 0.12. Furthermore, the fund has a Mean Return of 0.21 and a Alpha of 3.91.
The Vanguard Mid-Cap Index Fund ETF Shares (VO) has a Treynor Ratio of 11.32 with a Alpha of -2.71 and a Beta of 1.11. Its R-squared is 92.22 while VO’s Mean Return is 1.14. Furthermore, the fund has a Sharpe Ratio of 0.83 and a Standard Deviation of 15.65.
GLD’s Mean Return is 0.93 points lower than that of VO and its R-squared is 76.01 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than VO. The Alpha and Beta of GLD are 6.62 points higher and 0.63 points lower than VO’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 VO, returning 35.15% on an annual basis. The poorest year for VO in the last ten years was 2018, with a yield of -9.21%. Most years the Vanguard Mid-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2012, and 2020, when gains were 13.76%, 15.98%, and 18.22% 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 VO, the end total would have been $40,404. This equates to a $30,404 profit over 11 years and a compound annual growth rate (CAGR) of 14.34%.
GLD’s CAGR is 8.53 percentage points lower than that of VO and as a result, would have yielded $24,009 less on a $10,000 investment. Thus, GLD performed worse than VO by 8.53% annually.
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