The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between DIA and IWP? And which fund is better?
The expense ratio of DIA is 0.08 percentage points lower than IWP’s (0.16% vs. 0.24%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided lower returns than IWP over the past ten years.
In this article, we’ll compare DIA vs. IWP. We’ll look at industry exposure and fund composition, as well as at their annual returns and portfolio growth. Moreover, I’ll also discuss DIA’s and IWP’s holdings, risk metrics, and performance and examine how these affect their overall returns.
Summary
| DIA | IWP | |
| Name | SPDR Dow Jones Industrial Average ETF Trust | iShares Russell Mid-Cap Growth ETF |
| Category | Large Value | Mid-Cap Growth |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 30.46B | 15.7B |
| Avg. Return | 13.35% | 16.75% |
| Div. Yield | 1.61% | 0.26% |
| Expense Ratio | 0.16% | 0.24% |
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 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%.
DIA’s dividend yield is 1.35% higher than that of IWP (1.61% vs. 0.26%). Also, DIA yielded on average 3.40% less per year over the past decade (13.35% vs. 16.75%). The expense ratio of DIA is 0.08 percentage points lower than IWP’s (0.16% vs. 0.24%).
Fund Composition
Industry Exposure
| DIA | IWP | |
| Technology | 17.32% | 33.88% |
| Industrials | 16.7% | 14.09% |
| Energy | 2.0% | 1.51% |
| Communication Services | 4.42% | 6.32% |
| Utilities | 0.0% | 0.16% |
| Healthcare | 17.92% | 16.79% |
| Consumer Defensive | 6.3% | 2.32% |
| Real Estate | 0.0% | 2.46% |
| Financial Services | 20.68% | 4.52% |
| Consumer Cyclical | 13.44% | 16.09% |
| Basic Materials | 1.21% | 1.86% |
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 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%.
DIA is 16.16% more exposed to the Financial Services sector than IWP (20.68% vs 4.52%). DIA’s exposure to Healthcare and Technology stocks is 1.13% higher and 16.56% lower respectively (17.92% vs. 16.79% and 17.32% vs. 33.88%). In total, Utilities, Basic Materials, and Energy also make up 0.32% less of the fund’s holdings compared to IWP (3.21% vs. 3.53%).
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%.
| 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
| DIA | IWP | |
| Mean Return | 1.13 | 1.27 |
| R-squared | 93.31 | 87.01 |
| Std. Deviation | 13.68 | 16.05 |
| Alpha | -0.94 | -1.03 |
| Beta | 0.97 | 1.1 |
| Sharpe Ratio | 0.94 | 0.91 |
| Treynor Ratio | 13.07 | 12.98 |
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Mean Return of 1.13 with a Beta of 0.97 and a Treynor Ratio of 13.07. Its Standard Deviation is 13.68 while DIA’s Sharpe Ratio is 0.94. Furthermore, the fund has a R-squared of 93.31 and a Alpha of -0.94.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Alpha of -1.03 with a Treynor Ratio of 12.98 and a Sharpe Ratio of 0.91. Its Beta is 1.1 while IWP’s Standard Deviation is 16.05. Furthermore, the fund has a R-squared of 87.01 and a Mean Return of 1.27.
DIA’s Mean Return is 0.14 points lower than that of IWP and its R-squared is 6.30 points higher. With a Standard Deviation of 13.68, DIA is slightly less volatile than IWP. The Alpha and Beta of DIA are 0.09 points higher and 0.13 points lower than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | DIA | IWP |
| 2020 | 9.63% | 35.29% |
| 2019 | 25.09% | 35.14% |
| 2018 | -3.6% | -4.95% |
| 2017 | 27.97% | 24.98% |
| 2016 | 16.28% | 7.15% |
| 2015 | 0.1% | -0.39% |
| 2014 | 9.88% | 11.68% |
| 2013 | 29.41% | 35.44% |
| 2012 | 10.04% | 15.62% |
| 2011 | 8.21% | -1.82% |
| 2010 | 13.87% | 26.1% |
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 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 |
| DIA | $10,000 | $37,965 | 13.35% |
| IWP | $10,000 | $50,191 | 16.75% |
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 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%.
DIA’s CAGR is 3.40 percentage points lower than that of IWP and as a result, would have yielded $12,226 less on a $10,000 investment. Thus, DIA performed worse than IWP by 3.40% annually.
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