The Invesco QQQ Trust (QQQ) and the SPDR Gold Shares (GLD) are both among the Top 100 ETFs. QQQ is a Invesco Large Growth fund and GLD is a SPDR State Street Global Advisors N/A fund. So, what’s the difference between QQQ and GLD? And which fund is better?
The expense ratio of QQQ is 0.20 percentage points lower than GLD’s (0.2% vs. 0.4%). QQQ also has a higher exposure to the technology sector and a lower standard deviation. Overall, QQQ has provided higher returns than GLD over the past ten years.
In this article, we’ll compare QQQ vs. GLD. We’ll look at portfolio growth and risk metrics, as well as at their fund composition and performance. Moreover, I’ll also discuss QQQ’s and GLD’s holdings, industry exposure, and annual returns and examine how these affect their overall returns.
Summary
| QQQ | GLD | |
| Name | Invesco QQQ Trust | SPDR Gold Shares |
| Category | Large Growth | N/A |
| Issuer | Invesco | SPDR State Street Global Advisors |
| AUM | 174.51B | 59.26B |
| Avg. Return | 21.27% | 5.81% |
| Div. Yield | 0.49% | 0.0% |
| Expense Ratio | 0.2% | 0.4% |
The Invesco QQQ Trust (QQQ) is a Large Growth fund that is issued by Invesco. It currently has 174.51B total assets under management and has yielded an average annual return of 21.27% over the past 10 years. The fund has a dividend yield of 0.49% with an expense ratio of 0.2%.
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%.
QQQ’s dividend yield is 0.49% higher than that of GLD (0.49% vs. 0.0%). Also, QQQ yielded on average 15.46% more per year over the past decade (21.27% vs. 5.81%). The expense ratio of QQQ is 0.20 percentage points lower than GLD’s (0.2% vs. 0.4%).
Fund Composition
Industry Exposure
| QQQ | GLD | |
| Technology | 45.46% | 0.0% |
| Industrials | 2.61% | 0.0% |
| Energy | 0.0% | 0.0% |
| Communication Services | 19.55% | 0.0% |
| Utilities | 0.89% | 0.0% |
| Healthcare | 7.04% | 0.0% |
| Consumer Defensive | 4.68% | 0.0% |
| Real Estate | 0.0% | 0.0% |
| Financial Services | 2.51% | 0.0% |
| Consumer Cyclical | 17.27% | 0.0% |
| Basic Materials | 0.0% | 0.0% |
The Invesco QQQ Trust (QQQ) has the most exposure to the Technology sector at 45.46%. This is followed by Communication Services and Consumer Cyclical at 19.55% and 17.27% respectively. Real Estate (0.0%), Energy (0.0%), and Utilities (0.89%) only make up 0.89% of the fund’s total assets.
QQQ’s mid-section with moderate exposure is comprised of Financial Services, Industrials, Consumer Defensive, Healthcare, and Consumer Cyclical stocks at 2.51%, 2.61%, 4.68%, 7.04%, and 17.27%.
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%.
QQQ is 45.46% more exposed to the Technology sector than GLD (45.46% vs 0.0%). QQQ’s exposure to Communication Services and Consumer Cyclical stocks is 19.55% higher and 17.27% higher respectively (19.55% vs. 0.0% and 17.27% vs. 0.0%). In total, Real Estate, Energy, and Utilities also make up 0.89% more of the fund’s holdings compared to GLD (0.89% vs. 0.00%).
Holdings
| QQQ Holdings | Weight |
| Apple Inc | 11.0% |
| Microsoft Corp | 9.82% |
| Amazon.com Inc | 8.35% |
| Facebook Inc Class A | 4.01% |
| Facebook Inc A | 4.01% |
| Alphabet Inc Class C | 3.9% |
| Tesla Inc | 3.9% |
| NVIDIA Corp | 3.65% |
| Alphabet Inc Class A | 3.53% |
| Alphabet Inc A | 3.53% |
QQQ’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Facebook Inc A at 11.0%, 9.82%, 8.35%, 4.01%, and 4.01%.
Alphabet Inc Class C (3.9%), Tesla Inc (3.9%), and NVIDIA Corp (3.65%) have a slightly smaller but still significant weight. Alphabet Inc Class A and Alphabet Inc A are also represented in the QQQ’s holdings at 3.53% and 3.53%.
| 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%.
Performance
Annual Returns
| Year | QQQ | GLD |
| 2020 | 48.6% | 23.68% |
| 2019 | 39.12% | 18.36% |
| 2018 | -0.14% | -1.54% |
| 2017 | 32.7% | 11.41% |
| 2016 | 7.01% | 8.69% |
| 2015 | 9.54% | -11.78% |
| 2014 | 19.12% | -0.58% |
| 2013 | 36.6% | -28.09% |
| 2012 | 18.09% | 5.26% |
| 2011 | 3.44% | 11.2% |
| 2010 | 19.89% | 27.25% |
QQQ had its best year in 2020 with an annual return of 48.6%. QQQ’s worst year over the past decade yielded -0.14% and occurred in 2018. In most years the Invesco QQQ Trust provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 18.09%, 19.12%, and 19.89% 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 |
| QQQ | $10,000 | $76,522 | 21.27% |
| GLD | $10,000 | $16,395 | 5.81% |
A $10,000 investment in QQQ would have resulted in a final balance of $76,522. This is a profit of $66,522 over 11 years and amounts to a compound annual growth rate (CAGR) of 21.27%.
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%.
QQQ’s CAGR is 15.46 percentage points higher than that of GLD and as a result, would have yielded $60,127 more on a $10,000 investment. Thus, QQQ outperformed GLD by 15.46% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
