The SPDR Gold Shares (GLD) and the Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VTIP is a Vanguard Inflation-Protected Bond fund. So, what’s the difference between GLD and VTIP? And which fund is better?
The expense ratio of GLD is 0.35 percentage points higher than VTIP’s (0.4% vs. 0.05%). GLD also has a high exposure to the technology sector while VTIP is mostly comprised of AAA bonds. Overall, GLD has provided higher returns than VTIP over the past ten years.
In this article, we’ll compare GLD vs. VTIP. We’ll look at fund composition and performance, as well as at their risk metrics and portfolio growth. Moreover, I’ll also discuss GLD’s and VTIP’s industry exposure, annual returns, and holdings and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Short-Term Inflation-Protected Securities 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 Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) is a Inflation-Protected Bond fund that is issued by Vanguard. It currently has 50.67B total assets under management and has yielded an average annual return of 1.79% over the past 10 years. The fund has a dividend yield of 1.35% with an expense ratio of 0.05%.
GLD’s dividend yield is 1.35% lower than that of VTIP (0.0% vs. 1.35%). Also, GLD yielded on average 4.01% more per year over the past decade (5.81% vs. 1.79%). The expense ratio of GLD is 0.35 percentage points higher than VTIP’s (0.4% vs. 0.05%).
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%.
|VTIP Bond Sectors||Weight|
VTIP’s Top Bond Sectors are ratings of AAA, Others, Below B, B, and BB at 99.87%, 0.13%, 0.0%, 0.0%, and 0.0%. The fund is less weighted towards BBB (0.0%), A (0.0%), and AA (0.0%) rated bonds.
The SPDR Gold Shares (GLD) has a Beta of 0.48 with a Standard Deviation of 16.58 and a R-squared of 16.21. Its Alpha is 3.91 while GLD’s Mean Return is 0.21. Furthermore, the fund has a Sharpe Ratio of 0.12 and a Treynor Ratio of 1.21.
The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) has a Alpha of 0 with a Sharpe Ratio of 0 and a Treynor Ratio of 0. Its Standard Deviation is 0 while VTIP’s R-squared is 0. Furthermore, the fund has a Beta of 0 and a Mean Return of 0.
GLD’s Mean Return is 0.21 points higher than that of VTIP and its R-squared is 16.21 points higher. With a Standard Deviation of 16.58, GLD is slightly more volatile than VTIP. The Alpha and Beta of GLD are 3.91 points higher and 0.48 points higher than VTIP’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 2020 was the strongest year for VTIP, returning 4.97% on an annual basis. The poorest year for VTIP in the last ten years was 2013, with a yield of -1.55%. Most years the Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares has given investors modest returns, such as in 2011, 2010, and 2018, when gains were 0.0%, 0.0%, and 0.54% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $15,308. This is a profit of $5,308 over 7 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in VTIP, the end total would have been $11,305. This equates to a $1,305 profit over 7 years and a compound annual growth rate (CAGR) of 1.79%.
GLD’s CAGR is 4.01 percentage points higher than that of VTIP and as a result, would have yielded $4,003 more on a $10,000 investment. Thus, GLD outperformed VTIP by 4.01% annually.
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