The iShares MSCI ACWI ETF (ACWI) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. ACWI is a iShares N/A fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between ACWI and IWP? And which fund is better?
The expense ratio of ACWI is 0.08 percentage points higher than IWP’s (0.32% vs. 0.24%). ACWI also has a lower exposure to the technology sector and a lower standard deviation. Overall, ACWI has provided lower returns than IWP over the past 11 years.
In this article, we’ll compare ACWI vs. IWP. We’ll look at industry exposure and portfolio growth, as well as at their fund composition and performance. Moreover, I’ll also discuss ACWI’s and IWP’s risk metrics, annual returns, and holdings and examine how these affect their overall returns.
Summary
| ACWI | IWP | |
| Name | iShares MSCI ACWI ETF | iShares Russell Mid-Cap Growth ETF |
| Category | N/A | Mid-Cap Growth |
| Issuer | iShares | iShares |
| AUM | 16.85B | 15.7B |
| Avg. Return | 10.21% | 16.75% |
| Div. Yield | 1.39% | 0.26% |
| Expense Ratio | 0.32% | 0.24% |
The iShares MSCI ACWI ETF (ACWI) is a N/A fund that is issued by iShares. It currently has 16.85B total assets under management and has yielded an average annual return of 10.21% over the past 10 years. The fund has a dividend yield of 1.39% with an expense ratio of 0.32%.
The iShares Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.
ACWI’s dividend yield is 1.13% higher than that of IWP (1.39% vs. 0.26%). Also, ACWI yielded on average 6.53% less per year over the past decade (10.21% vs. 16.75%). The expense ratio of ACWI is 0.08 percentage points higher than IWP’s (0.32% vs. 0.24%).
Fund Composition
Industry Exposure
| ACWI | IWP | |
| Technology | 20.41% | 33.88% |
| Industrials | 9.65% | 14.09% |
| Energy | 3.48% | 1.51% |
| Communication Services | 9.87% | 6.32% |
| Utilities | 2.61% | 0.16% |
| Healthcare | 11.74% | 16.79% |
| Consumer Defensive | 7.15% | 2.32% |
| Real Estate | 2.75% | 2.46% |
| Financial Services | 15.58% | 4.52% |
| Consumer Cyclical | 12.01% | 16.09% |
| Basic Materials | 4.73% | 1.86% |
The iShares MSCI ACWI ETF (ACWI) has the most exposure to the Technology sector at 20.41%. This is followed by Financial Services and Consumer Cyclical at 15.58% and 12.01% respectively. Real Estate (2.75%), Energy (3.48%), and Basic Materials (4.73%) only make up 10.96% of the fund’s total assets.
ACWI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Healthcare, and Consumer Cyclical stocks at 7.15%, 9.65%, 9.87%, 11.74%, and 12.01%.
The iShares Russell Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.
IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.
ACWI is 13.47% less exposed to the Technology sector than IWP (20.41% vs 33.88%). ACWI’s exposure to Financial Services and Consumer Cyclical stocks is 11.06% higher and 4.08% lower respectively (15.58% vs. 4.52% and 12.01% vs. 16.09%). In total, Real Estate, Energy, and Basic Materials also make up 5.13% more of the fund’s holdings compared to IWP (10.96% vs. 5.83%).
Holdings
| ACWI Holdings | Weight |
| Apple Inc | 3.44% |
| Microsoft Corp | 2.91% |
| Amazon.com Inc | 2.21% |
| Facebook Inc A | 1.25% |
| Alphabet Inc Class C | 1.12% |
| Alphabet Inc A | 1.09% |
| Taiwan Semiconductor Manufacturing Co Ltd | 0.79% |
| Tesla Inc | 0.78% |
| NVIDIA Corp | 0.74% |
| JPMorgan Chase & Co | 0.71% |
ACWI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc Class C at 3.44%, 2.91%, 2.21%, 1.25%, and 1.12%.
Alphabet Inc A (1.09%), Taiwan Semiconductor Manufacturing Co Ltd (0.79%), and Tesla Inc (0.78%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ACWI’s holdings at 0.74% and 0.71%.
| IWP Holdings | Weight |
| IDEXX Laboratories Inc | 1.3% |
| DocuSign Inc | 1.3% |
| Roku Inc Class A | 1.29% |
| Match Group Inc | 1.06% |
| Chipotle Mexican Grill Inc | 1.06% |
| Pinterest Inc | 1.05% |
| Veeva Systems Inc Class A | 1.04% |
| Palantir Technologies Inc Ordinary Shares – Class A | 1.04% |
| Lululemon Athletica Inc | 1.01% |
| DexCom Inc | 1.0% |
IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.
Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.
Risk Analysis
| ACWI | IWP | |
| Mean Return | 0.89 | 1.27 |
| R-squared | 99.96 | 87.01 |
| Std. Deviation | 14.05 | 16.05 |
| Alpha | 0.15 | -1.03 |
| Beta | 1 | 1.1 |
| Sharpe Ratio | 0.71 | 0.91 |
| Treynor Ratio | 9.45 | 12.98 |
The iShares MSCI ACWI ETF (ACWI) has a Beta of 1 with a Alpha of 0.15 and a Sharpe Ratio of 0.71. Its Standard Deviation is 14.05 while ACWI’s Mean Return is 0.89. Furthermore, the fund has a Treynor Ratio of 9.45 and a R-squared of 99.96.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Beta of 1.1 with a Mean Return of 1.27 and a Treynor Ratio of 12.98. Its Alpha is -1.03 while IWP’s Sharpe Ratio is 0.91. Furthermore, the fund has a R-squared of 87.01 and a Standard Deviation of 16.05.
ACWI’s Mean Return is 0.38 points lower than that of IWP and its R-squared is 12.95 points higher. With a Standard Deviation of 14.05, ACWI is slightly less volatile than IWP. The Alpha and Beta of ACWI are 1.18 points higher and 0.10 points lower than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | ACWI | IWP |
| 2020 | 16.38% | 35.29% |
| 2019 | 26.7% | 35.14% |
| 2018 | -9.15% | -4.95% |
| 2017 | 24.35% | 24.98% |
| 2016 | 8.22% | 7.15% |
| 2015 | -2.39% | -0.39% |
| 2014 | 4.64% | 11.68% |
| 2013 | 22.91% | 35.44% |
| 2012 | 15.99% | 15.62% |
| 2011 | -7.6% | -1.82% |
| 2010 | 12.31% | 26.1% |
ACWI had its best year in 2019 with an annual return of 26.7%. ACWI’s worst year over the past decade yielded -9.15% and occurred in 2018. In most years the iShares MSCI ACWI ETF provided moderate returns such as in 2016, 2010, and 2012 where annual returns amounted to 8.22%, 12.31%, and 15.99% respectively.
The year 2013 was the strongest year for IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| ACWI | $10,000 | $27,241 | 10.21% |
| IWP | $10,000 | $50,191 | 16.75% |
A $10,000 investment in ACWI would have resulted in a final balance of $27,241. This is a profit of $17,241 over 11 years and amounts to a compound annual growth rate (CAGR) of 10.21%.
With a $10,000 investment in IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.
ACWI’s CAGR is 6.53 percentage points lower than that of IWP and as a result, would have yielded $22,950 less on a $10,000 investment. Thus, ACWI performed worse than IWP by 6.53% annually.
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