VTV vs. GLD: What’s The Difference?

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

The expense ratio of VTV is 0.36 percentage points lower than GLD’s (0.04% vs. 0.4%). VTV also has a higher exposure to the financial services sector and a lower standard deviation. Overall, VTV has provided higher returns than GLD over the past ten years.

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

Summary

VTV GLD
Name Vanguard Value Index Fund ETF Shares SPDR Gold Shares
Category Large Value N/A
Issuer Vanguard SPDR State Street Global Advisors
AUM 125.77B 59.26B
Avg. Return 12.07% 5.81%
Div. Yield 2.15% 0.0%
Expense Ratio 0.04% 0.4%

The Vanguard Value Index Fund ETF Shares (VTV) is a Large Value fund that is issued by Vanguard. It currently has 125.77B total assets under management and has yielded an average annual return of 12.07% over the past 10 years. The fund has a dividend yield of 2.15% with an expense ratio of 0.04%.

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%.

VTV’s dividend yield is 2.15% higher than that of GLD (2.15% vs. 0.0%). Also, VTV yielded on average 6.27% more per year over the past decade (12.07% vs. 5.81%). The expense ratio of VTV is 0.36 percentage points lower than GLD’s (0.04% vs. 0.4%).

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Fund Composition

Industry Exposure

VTV vs. GLD - Industry Exposure

VTV GLD
Technology 7.86% 0.0%
Industrials 12.61% 0.0%
Energy 5.59% 0.0%
Communication Services 5.49% 0.0%
Utilities 5.37% 0.0%
Healthcare 19.84% 0.0%
Consumer Defensive 10.72% 0.0%
Real Estate 3.01% 0.0%
Financial Services 22.81% 0.0%
Consumer Cyclical 3.79% 0.0%
Basic Materials 2.91% 0.0%

The Vanguard Value Index Fund ETF Shares (VTV) has the most exposure to the Financial Services sector at 22.81%. This is followed by Healthcare and Industrials at 19.84% and 12.61% respectively. Real Estate (3.01%), Consumer Cyclical (3.79%), and Utilities (5.37%) only make up 12.17% of the fund’s total assets.

VTV’s mid-section with moderate exposure is comprised of Communication Services, Energy, Technology, Consumer Defensive, and Industrials stocks at 5.49%, 5.59%, 7.86%, 10.72%, and 12.61%.

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%.

VTV is 22.81% more exposed to the Financial Services sector than GLD (22.81% vs 0.0%). VTV’s exposure to Healthcare and Industrials stocks is 19.84% higher and 12.61% higher respectively (19.84% vs. 0.0% and 12.61% vs. 0.0%). In total, Real Estate, Consumer Cyclical, and Utilities also make up 12.17% more of the fund’s holdings compared to GLD (12.17% vs. 0.00%).

Holdings

VTV - Holdings

VTV Holdings Weight
Berkshire Hathaway Inc Class B 2.98%
JPMorgan Chase & Co 2.82%
Johnson & Johnson 2.6%
UnitedHealth Group Inc 2.27%
Procter & Gamble Co 1.98%
Bank of America Corp 1.91%
Exxon Mobil Corp 1.6%
Comcast Corp Class A 1.57%
Intel Corp 1.36%
Verizon Communications Inc 1.32%

VTV’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.98%, 2.82%, 2.6%, 2.27%, and 1.98%.

Bank of America Corp (1.91%), Exxon Mobil Corp (1.6%), and Comcast Corp Class A (1.57%) have a slightly smaller but still significant weight. Intel Corp and Verizon Communications Inc are also represented in the VTV’s holdings at 1.36% and 1.32%.

GLD - Holdings

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%.

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Risk Analysis

VTV GLD
Mean Return 1.05 0.21
R-squared 92.61 16.21
Std. Deviation 13.78 16.58
Alpha -1.92 3.91
Beta 0.98 0.48
Sharpe Ratio 0.87 0.12
Treynor Ratio 11.94 1.21

The Vanguard Value Index Fund ETF Shares (VTV) has a Sharpe Ratio of 0.87 with a Alpha of -1.92 and a Treynor Ratio of 11.94. Its Beta is 0.98 while VTV’s R-squared is 92.61. Furthermore, the fund has a Standard Deviation of 13.78 and a Mean Return of 1.05.

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

VTV’s Mean Return is 0.84 points higher than that of GLD and its R-squared is 76.40 points higher. With a Standard Deviation of 13.78, VTV is slightly less volatile than GLD. The Alpha and Beta of VTV are 5.83 points lower and 0.50 points higher than GLD’s Alpha and Beta.

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Performance

Annual Returns

VTV vs. GLD - Annual Returns

Year VTV GLD
2020 2.23% 23.68%
2019 25.85% 18.36%
2018 -5.39% -1.54%
2017 17.12% 11.41%
2016 16.88% 8.69%
2015 -0.89% -11.78%
2014 13.19% -0.58%
2013 33.03% -28.09%
2012 15.19% 5.26%
2011 1.16% 11.2%
2010 14.45% 27.25%

VTV had its best year in 2013 with an annual return of 33.03%. VTV’s worst year over the past decade yielded -5.39% and occurred in 2018. In most years the Vanguard Value Index Fund ETF Shares provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.19%, 14.45%, and 15.19% 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

VTV vs. GLD - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VTV $10,000 $33,163 12.07%
GLD $10,000 $16,395 5.81%

A $10,000 investment in VTV would have resulted in a final balance of $33,163. This is a profit of $23,163 over 11 years and amounts to a compound annual growth rate (CAGR) of 12.07%.

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%.

VTV’s CAGR is 6.27 percentage points higher than that of GLD and as a result, would have yielded $16,768 more on a $10,000 investment. Thus, VTV outperformed GLD by 6.27% annually.


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