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GLD vs. VOE: What’s The Difference?

The SPDR Gold Shares (GLD) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between GLD and VOE? And which fund is better?

The expense ratio of GLD is 0.33 percentage points higher than VOE’s (0.4% vs. 0.07%). GLD also has a lower exposure to the technology sector and a higher standard deviation. Overall, GLD has provided lower returns than VOE over the past ten years.

In this article, we’ll compare GLD vs. VOE. We’ll look at holdings and annual returns, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss GLD’s and VOE’s portfolio growth, industry exposure, and performance and examine how these affect their overall returns.

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Summary

GLDVOE
NameSPDR Gold SharesVanguard Mid-Cap Value Index Fund ETF Shares
CategoryN/AMid-Cap Value
IssuerSPDR State Street Global AdvisorsVanguard
AUM59.26B26.78B
Avg. Return5.81%12.52%
Div. Yield0.0%1.87%
Expense Ratio0.4%0.07%

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 Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.

GLD’s dividend yield is 1.87% lower than that of VOE (0.0% vs. 1.87%). Also, GLD yielded on average 6.72% less per year over the past decade (5.81% vs. 12.52%). The expense ratio of GLD is 0.33 percentage points higher than VOE’s (0.4% vs. 0.07%).

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Fund Composition

Industry Exposure

GLD vs. VOE - Industry Exposure

GLDVOE
Technology0.0%9.85%
Industrials0.0%9.4%
Energy0.0%5.69%
Communication Services0.0%5.27%
Utilities0.0%10.93%
Healthcare0.0%7.04%
Consumer Defensive0.0%4.85%
Real Estate0.0%11.48%
Financial Services0.0%18.26%
Consumer Cyclical0.0%11.8%
Basic Materials0.0%5.44%

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 Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.

VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.

GLD is 9.85% less exposed to the Technology sector than VOE (0.0% vs 9.85%). GLD’s exposure to Industrials and Energy stocks is 9.40% lower and 5.69% lower respectively (0.0% vs. 9.4% and 0.0% vs. 5.69%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 41.54% less of the fund’s holdings compared to VOE (0.00% vs. 41.54%).

Holdings

GLD - Holdings

GLD HoldingsWeight
Gold Trust100.0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%
N/A0%

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%.

VOE - Holdings

VOE HoldingsWeight
Carrier Global Corp Ordinary Shares1.28%
International Flavors & Fragrances Inc1.13%
Motorola Solutions Inc1.12%
Discover Financial Services1.09%
Welltower Inc1.05%
Corteva Inc0.99%
Valero Energy Corp0.97%
Corning Inc0.95%
Willis Towers Watson PLC0.9%
D.R. Horton Inc0.89%

VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.

Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.

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Risk Analysis

GLDVOE
Mean Return0.211.05
R-squared16.2188.76
Std. Deviation16.5815.98
Alpha3.91-3.77
Beta0.481.11
Sharpe Ratio0.120.75
Treynor Ratio1.2110.19

The SPDR Gold Shares (GLD) has a Beta of 0.48 with a R-squared of 16.21 and a Sharpe Ratio of 0.12. Its Mean Return is 0.21 while GLD’s Alpha is 3.91. Furthermore, the fund has a Standard Deviation of 16.58 and a Treynor Ratio of 1.21.

The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Sharpe Ratio of 0.75 with a R-squared of 88.76 and a Beta of 1.11. Its Mean Return is 1.05 while VOE’s Treynor Ratio is 10.19. Furthermore, the fund has a Standard Deviation of 15.98 and a Alpha of -3.77.

GLD’s Mean Return is 0.84 points lower than that of VOE and its R-squared is 72.55 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than VOE. The Alpha and Beta of GLD are 7.68 points higher and 0.63 points lower than VOE’s Alpha and Beta.

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Performance

Annual Returns

GLD vs. VOE - Annual Returns

YearGLDVOE
202023.68%2.5%
201918.36%27.98%
2018-1.54%-12.41%
201711.41%17.05%
20168.69%15.26%
2015-11.78%-1.8%
2014-0.58%13.98%
2013-28.09%37.65%
20125.26%16.04%
201111.2%-0.32%
201027.25%21.83%

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 VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.

Portfolio Growth

GLD vs. VOE - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
GLD$10,000$16,3955.81%
VOE$10,000$33,65512.52%

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 VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.

GLD’s CAGR is 6.72 percentage points lower than that of VOE and as a result, would have yielded $17,260 less on a $10,000 investment. Thus, GLD performed worse than VOE by 6.72% annually.


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