The SPDR Gold Shares (GLD) and the Vanguard Total International Stock Index Fund ETF Shares (VXUS) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and VXUS is a Vanguard Foreign Large Blend fund. So, what’s the difference between GLD and VXUS? And which fund is better?
The expense ratio of GLD is 0.32 percentage points higher than VXUS’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 VXUS over the past ten years.
In this article, we’ll compare GLD vs. VXUS. We’ll look at risk metrics and portfolio growth, as well as at their performance and fund composition. Moreover, I’ll also discuss GLD’s and VXUS’s holdings, industry exposure, and annual returns and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Vanguard Total International Stock 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 Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.
GLD’s dividend yield is 2.44% lower than that of VXUS (0.0% vs. 2.44%). Also, GLD yielded on average 2.60% less per year over the past decade (5.81% vs. 8.41%). The expense ratio of GLD is 0.32 percentage points higher than VXUS’s (0.4% vs. 0.08%).
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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 Total International Stock Index Fund ETF Shares (VXUS) has the most exposure to the Financial Services sector at 17.64%. This is followed by Technology and Industrials at 13.07% and 12.94% respectively. Real Estate (3.79%), Energy (4.55%), and Communication Services (7.06%) only make up 15.40% of the fund’s total assets.
VXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 7.83%, 8.37%, 9.19%, 12.64%, and 12.94%.
GLD is 13.07% less exposed to the Technology sector than VXUS (0.0% vs 13.07%). GLD’s exposure to Industrials and Energy stocks is 12.94% lower and 4.55% lower respectively (0.0% vs. 12.94% and 0.0% vs. 4.55%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 34.07% less of the fund’s holdings compared to VXUS (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%.
|Taiwan Semiconductor Manufacturing Co Ltd||1.62%|
|Tencent Holdings Ltd||1.41%|
|Alibaba Group Holding Ltd Ordinary Shares||1.26%|
|Samsung Electronics Co Ltd||1.05%|
|ASML Holding NV||0.86%|
|Roche Holding AG||0.81%|
|Toyota Motor Corp||0.67%|
|LVMH Moet Hennessy Louis Vuitton SE||0.61%|
VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.
ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.
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The SPDR Gold Shares (GLD) has a Standard Deviation of 16.58 with a Treynor Ratio of 1.21 and a Mean Return of 0.21. Its Alpha is 3.91 while GLD’s Beta is 0.48. Furthermore, the fund has a Sharpe Ratio of 0.12 and a R-squared of 16.21.
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a Treynor Ratio of 5.14 with a R-squared of 98.39 and a Alpha of 0.31. Its Standard Deviation is 15.12 while VXUS’s Mean Return is 0.56. Furthermore, the fund has a Beta of 0.99 and a Sharpe Ratio of 0.4.
GLD’s Mean Return is 0.35 points lower than that of VXUS and its R-squared is 82.18 points lower. With a Standard Deviation of 16.58, GLD is slightly more volatile than VXUS. The Alpha and Beta of GLD are 3.60 points higher and 0.51 points lower than VXUS’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 2017 was the strongest year for VXUS, returning 27.52% on an annual basis. The poorest year for VXUS in the last ten years was 2018, with a yield of -14.42%. Most years the Vanguard Total International Stock Index Fund ETF Shares has given investors modest returns, such as in 2010, 2016, and 2020, when gains were 0.0%, 4.72%, and 11.32% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $11,587. This is a profit of $1,587 over 9 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in VXUS, the end total would have been $19,315. This equates to a $9,315 profit over 9 years and a compound annual growth rate (CAGR) of 8.41%.
GLD’s CAGR is 2.60 percentage points lower than that of VXUS and as a result, would have yielded $7,728 less on a $10,000 investment. Thus, GLD performed worse than VXUS by 2.60% annually.
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