The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares MSCI ACWI ETF (ACWI) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and ACWI is a iShares N/A fund. So, what’s the difference between DIA and ACWI? And which fund is better?
The expense ratio of DIA is 0.16 percentage points lower than ACWI’s (0.16% vs. 0.32%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided higher returns than ACWI over the past ten years.
In this article, we’ll compare DIA vs. ACWI. We’ll look at portfolio growth and holdings, as well as at their annual returns and fund composition. Moreover, I’ll also discuss DIA’s and ACWI’s risk metrics, performance, and industry exposure and examine how these affect their overall returns.
Summary
| DIA | ACWI | |
| Name | SPDR Dow Jones Industrial Average ETF Trust | iShares MSCI ACWI ETF |
| Category | Large Value | N/A |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 30.46B | 16.85B |
| Avg. Return | 13.35% | 10.21% |
| Div. Yield | 1.61% | 1.39% |
| Expense Ratio | 0.16% | 0.32% |
The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.
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%.
DIA’s dividend yield is 0.22% higher than that of ACWI (1.61% vs. 1.39%). Also, DIA yielded on average 3.14% more per year over the past decade (13.35% vs. 10.21%). The expense ratio of DIA is 0.16 percentage points lower than ACWI’s (0.16% vs. 0.32%).
Fund Composition
Industry Exposure
| DIA | ACWI | |
| Technology | 17.32% | 20.41% |
| Industrials | 16.7% | 9.65% |
| Energy | 2.0% | 3.48% |
| Communication Services | 4.42% | 9.87% |
| Utilities | 0.0% | 2.61% |
| Healthcare | 17.92% | 11.74% |
| Consumer Defensive | 6.3% | 7.15% |
| Real Estate | 0.0% | 2.75% |
| Financial Services | 20.68% | 15.58% |
| Consumer Cyclical | 13.44% | 12.01% |
| Basic Materials | 1.21% | 4.73% |
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.
DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.
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%.
DIA is 5.10% more exposed to the Financial Services sector than ACWI (20.68% vs 15.58%). DIA’s exposure to Healthcare and Technology stocks is 6.18% higher and 3.09% lower respectively (17.92% vs. 11.74% and 17.32% vs. 20.41%). In total, Utilities, Basic Materials, and Energy also make up 7.61% less of the fund’s holdings compared to ACWI (3.21% vs. 10.82%).
Holdings
| DIA Holdings | Weight |
| UnitedHealth Group Inc | 7.63% |
| Goldman Sachs Group Inc | 7.23% |
| The Home Depot Inc | 6.07% |
| Microsoft Corp | 5.16% |
| Salesforce.com Inc | 4.65% |
| Amgen Inc | 4.64% |
| Boeing Co | 4.56% |
| Visa Inc Class A | 4.45% |
| McDonald’s Corp | 4.4% |
| Honeywell International Inc | 4.18% |
DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.
Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.
| 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%.
Risk Analysis
| DIA | ACWI | |
| Mean Return | 1.13 | 0.89 |
| R-squared | 93.31 | 99.96 |
| Std. Deviation | 13.68 | 14.05 |
| Alpha | -0.94 | 0.15 |
| Beta | 0.97 | 1 |
| Sharpe Ratio | 0.94 | 0.71 |
| Treynor Ratio | 13.07 | 9.45 |
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a Alpha of -0.94 and a R-squared of 93.31. Its Sharpe Ratio is 0.94 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Standard Deviation of 13.68 and a Treynor Ratio of 13.07.
The iShares MSCI ACWI ETF (ACWI) has a Mean Return of 0.89 with a Standard Deviation of 14.05 and a R-squared of 99.96. Its Beta is 1 while ACWI’s Sharpe Ratio is 0.71. Furthermore, the fund has a Alpha of 0.15 and a Treynor Ratio of 9.45.
DIA’s Mean Return is 0.24 points higher than that of ACWI and its R-squared is 6.65 points lower. With a Standard Deviation of 13.68, DIA is slightly less volatile than ACWI. The Alpha and Beta of DIA are 1.09 points lower and 0.03 points lower than ACWI’s Alpha and Beta.
Performance
Annual Returns
| Year | DIA | ACWI |
| 2020 | 9.63% | 16.38% |
| 2019 | 25.09% | 26.7% |
| 2018 | -3.6% | -9.15% |
| 2017 | 27.97% | 24.35% |
| 2016 | 16.28% | 8.22% |
| 2015 | 0.1% | -2.39% |
| 2014 | 9.88% | 4.64% |
| 2013 | 29.41% | 22.91% |
| 2012 | 10.04% | 15.99% |
| 2011 | 8.21% | -7.6% |
| 2010 | 13.87% | 12.31% |
DIA had its best year in 2013 with an annual return of 29.41%. DIA’s worst year over the past decade yielded -3.6% and occurred in 2018. In most years the SPDR Dow Jones Industrial Average ETF Trust provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 9.88%, 10.04%, and 13.87% respectively.
The year 2019 was the strongest year for ACWI, returning 26.7% on an annual basis. The poorest year for ACWI in the last ten years was 2018, with a yield of -9.15%. Most years the iShares MSCI ACWI ETF has given investors modest returns, such as in 2016, 2010, and 2012, when gains were 8.22%, 12.31%, and 15.99% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| DIA | $10,000 | $37,965 | 13.35% |
| ACWI | $10,000 | $27,241 | 10.21% |
A $10,000 investment in DIA would have resulted in a final balance of $37,965. This is a profit of $27,965 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.35%.
With a $10,000 investment in ACWI, the end total would have been $27,241. This equates to a $17,241 profit over 11 years and a compound annual growth rate (CAGR) of 10.21%.
DIA’s CAGR is 3.14 percentage points higher than that of ACWI and as a result, would have yielded $10,724 more on a $10,000 investment. Thus, DIA outperformed ACWI by 3.14% annually.
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