The iShares Core S&P Small-Cap ETF (IJR) and the SPDR Gold Shares (GLD) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and GLD is a SPDR State Street Global Advisors N/A fund. So, what’s the difference between IJR and GLD? And which fund is better?
The expense ratio of IJR is 0.34 percentage points lower than GLD’s (0.06% vs. 0.4%). IJR also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJR has provided higher returns than GLD over the past ten years.
In this article, we’ll compare IJR vs. GLD. We’ll look at annual returns and industry exposure, as well as at their portfolio growth and risk metrics. Moreover, I’ll also discuss IJR’s and GLD’s holdings, fund composition, and performance and examine how these affect their overall returns.
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Summary
| IJR | GLD | |
| Name | iShares Core S&P Small-Cap ETF | SPDR Gold Shares |
| Category | Small Blend | N/A |
| Issuer | iShares | SPDR State Street Global Advisors |
| AUM | 68.64B | 59.26B |
| Avg. Return | 13.97% | 5.81% |
| Div. Yield | 0.96% | 0.0% |
| Expense Ratio | 0.06% | 0.4% |
The iShares Core S&P Small-Cap ETF (IJR) is a Small Blend fund that is issued by iShares. It currently has 68.64B total assets under management and has yielded an average annual return of 13.97% over the past 10 years. The fund has a dividend yield of 0.96% with an expense ratio of 0.06%.
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%.
IJR’s dividend yield is 0.96% higher than that of GLD (0.96% vs. 0.0%). Also, IJR yielded on average 8.16% more per year over the past decade (13.97% vs. 5.81%). The expense ratio of IJR is 0.34 percentage points lower than GLD’s (0.06% vs. 0.4%).
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Fund Composition
Industry Exposure
| IJR | GLD | |
| Technology | 14.32% | 0.0% |
| Industrials | 17.31% | 0.0% |
| Energy | 4.0% | 0.0% |
| Communication Services | 2.59% | 0.0% |
| Utilities | 1.8% | 0.0% |
| Healthcare | 11.55% | 0.0% |
| Consumer Defensive | 4.01% | 0.0% |
| Real Estate | 9.55% | 0.0% |
| Financial Services | 15.91% | 0.0% |
| Consumer Cyclical | 13.61% | 0.0% |
| Basic Materials | 5.34% | 0.0% |
The iShares Core S&P Small-Cap ETF (IJR) has the most exposure to the Industrials sector at 17.31%. This is followed by Financial Services and Technology at 15.91% and 14.32% respectively. Communication Services (2.59%), Energy (4.0%), and Consumer Defensive (4.01%) only make up 10.60% of the fund’s total assets.
IJR’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Consumer Cyclical, and Technology stocks at 5.34%, 9.55%, 11.55%, 13.61%, and 14.32%.
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%.
IJR is 17.31% more exposed to the Industrials sector than GLD (17.31% vs 0.0%). IJR’s exposure to Financial Services and Technology stocks is 15.91% higher and 14.32% higher respectively (15.91% vs. 0.0% and 14.32% vs. 0.0%). In total, Communication Services, Energy, and Consumer Defensive also make up 10.60% more of the fund’s holdings compared to GLD (10.60% vs. 0.00%).
Holdings
| IJR Holdings | Weight |
| BlackRock Cash Funds Treasury SL Agency | 1.08% |
| GameStop Corp Class A | 0.86% |
| Omnicell Inc | 0.61% |
| Stamps.com Inc | 0.58% |
| Saia Inc | 0.57% |
| Power Integrations Inc | 0.57% |
| Exponent Inc | 0.54% |
| NeoGenomics Inc | 0.53% |
| Chart Industries Inc | 0.53% |
| Macy’s Inc | 0.51% |
IJR’s Top Holdings are BlackRock Cash Funds Treasury SL Agency, GameStop Corp Class A, Omnicell Inc, Stamps.com Inc, and Saia Inc at 1.08%, 0.86%, 0.61%, 0.58%, and 0.57%.
Power Integrations Inc (0.57%), Exponent Inc (0.54%), and NeoGenomics Inc (0.53%) have a slightly smaller but still significant weight. Chart Industries Inc and Macy’s Inc are also represented in the IJR’s holdings at 0.53% and 0.51%.
| GLD Holdings | Weight |
| Gold Trust | 100.0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
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%.
Risk Analysis
| IJR | GLD | |
| Mean Return | 1.21 | 0.21 |
| R-squared | 76.03 | 16.21 |
| Std. Deviation | 18.68 | 16.58 |
| Alpha | -3.7 | 3.91 |
| Beta | 1.2 | 0.48 |
| Sharpe Ratio | 0.74 | 0.12 |
| Treynor Ratio | 10.77 | 1.21 |
The iShares Core S&P Small-Cap ETF (IJR) has a Sharpe Ratio of 0.74 with a R-squared of 76.03 and a Alpha of -3.7. Its Standard Deviation is 18.68 while IJR’s Beta is 1.2. Furthermore, the fund has a Treynor Ratio of 10.77 and a Mean Return of 1.21.
The SPDR Gold Shares (GLD) has a Beta of 0.48 with a R-squared of 16.21 and a Mean Return of 0.21. Its Standard Deviation is 16.58 while GLD’s Alpha is 3.91. Furthermore, the fund has a Treynor Ratio of 1.21 and a Sharpe Ratio of 0.12.
IJR’s Mean Return is 1.00 points higher than that of GLD and its R-squared is 59.82 points higher. With a Standard Deviation of 18.68, IJR is slightly more volatile than GLD. The Alpha and Beta of IJR are 7.61 points lower and 0.72 points higher than GLD’s Alpha and Beta.
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Performance
Annual Returns
| Year | IJR | GLD |
| 2020 | 11.24% | 23.68% |
| 2019 | 22.79% | 18.36% |
| 2018 | -8.43% | -1.54% |
| 2017 | 13.2% | 11.41% |
| 2016 | 26.49% | 8.69% |
| 2015 | -2.0% | -11.78% |
| 2014 | 5.67% | -0.58% |
| 2013 | 41.36% | -28.09% |
| 2012 | 16.28% | 5.26% |
| 2011 | 0.9% | 11.2% |
| 2010 | 26.14% | 27.25% |
IJR had its best year in 2013 with an annual return of 41.36%. IJR’s worst year over the past decade yielded -8.43% and occurred in 2018. In most years the iShares Core S&P Small-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 11.24%, 13.2%, and 16.28% respectively.
The year 2010 was the strongest year for GLD, returning 27.25% on an annual basis. The poorest year for GLD in the last ten years was 2013, with a yield of -28.09%. Most years the SPDR Gold Shares has given investors modest returns, such as in 2012, 2016, and 2011, when gains were 5.26%, 8.69%, and 11.2% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJR | $10,000 | $38,800 | 13.97% |
| GLD | $10,000 | $16,395 | 5.81% |
A $10,000 investment in IJR would have resulted in a final balance of $38,800. This is a profit of $28,800 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.97%.
With a $10,000 investment in GLD, the end total would have been $16,395. This equates to a $6,395 profit over 11 years and a compound annual growth rate (CAGR) of 5.81%.
IJR’s CAGR is 8.16 percentage points higher than that of GLD and as a result, would have yielded $22,405 more on a $10,000 investment. Thus, IJR outperformed GLD by 8.16% annually.
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