The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and VBK is a Vanguard Small Growth fund. So, what’s the difference between DIA and VBK? And which fund is better?
The expense ratio of DIA is 0.09 percentage points higher than VBK’s (0.16% vs. 0.07%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided lower returns than VBK over the past ten years.
In this article, we’ll compare DIA vs. VBK. We’ll look at fund composition and annual returns, as well as at their risk metrics and performance. Moreover, I’ll also discuss DIA’s and VBK’s holdings, industry exposure, and portfolio growth and examine how these affect their overall returns.
Summary
| DIA | VBK | |
| Name | SPDR Dow Jones Industrial Average ETF Trust | Vanguard Small-Cap Growth Index Fund ETF Shares |
| Category | Large Value | Small Growth |
| Issuer | SPDR State Street Global Advisors | Vanguard |
| AUM | 30.46B | 37.89B |
| Avg. Return | 13.35% | 16.53% |
| Div. Yield | 1.61% | 0.45% |
| Expense Ratio | 0.16% | 0.07% |
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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) is a Small Growth fund that is issued by Vanguard. It currently has 37.89B total assets under management and has yielded an average annual return of 16.53% over the past 10 years. The fund has a dividend yield of 0.45% with an expense ratio of 0.07%.
DIA’s dividend yield is 1.16% higher than that of VBK (1.61% vs. 0.45%). Also, DIA yielded on average 3.17% less per year over the past decade (13.35% vs. 16.53%). The expense ratio of DIA is 0.09 percentage points higher than VBK’s (0.16% vs. 0.07%).
Fund Composition
Industry Exposure
| DIA | VBK | |
| Technology | 17.32% | 27.87% |
| Industrials | 16.7% | 13.19% |
| Energy | 2.0% | 1.77% |
| Communication Services | 4.42% | 3.24% |
| Utilities | 0.0% | 0.32% |
| Healthcare | 17.92% | 23.24% |
| Consumer Defensive | 6.3% | 3.83% |
| Real Estate | 0.0% | 7.87% |
| Financial Services | 20.68% | 4.05% |
| Consumer Cyclical | 13.44% | 12.13% |
| Basic Materials | 1.21% | 2.49% |
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 Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has the most exposure to the Technology sector at 27.87%. This is followed by Healthcare and Industrials at 23.24% and 13.19% respectively. Energy (1.77%), Basic Materials (2.49%), and Communication Services (3.24%) only make up 7.50% of the fund’s total assets.
VBK’s mid-section with moderate exposure is comprised of Consumer Defensive, Financial Services, Real Estate, Consumer Cyclical, and Industrials stocks at 3.83%, 4.05%, 7.87%, 12.13%, and 13.19%.
DIA is 16.63% more exposed to the Financial Services sector than VBK (20.68% vs 4.05%). DIA’s exposure to Healthcare and Technology stocks is 5.32% lower and 10.55% lower respectively (17.92% vs. 23.24% and 17.32% vs. 27.87%). In total, Utilities, Basic Materials, and Energy also make up 1.37% less of the fund’s holdings compared to VBK (3.21% vs. 4.58%).
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%.
| VBK Holdings | Weight |
| Charles River Laboratories International Inc | 0.78% |
| Pool Corp | 0.73% |
| Bio-Techne Corp | 0.73% |
| Avantor Inc | 0.73% |
| PerkinElmer Inc | 0.72% |
| Entegris Inc | 0.7% |
| PTC Inc | 0.62% |
| Fair Isaac Corp | 0.57% |
| Bill.com Holdings Inc Ordinary Shares | 0.56% |
| Avalara Inc | 0.55% |
VBK’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.78%, 0.73%, 0.73%, 0.73%, and 0.72%.
Entegris Inc (0.7%), PTC Inc (0.62%), and Fair Isaac Corp (0.57%) have a slightly smaller but still significant weight. Bill.com Holdings Inc Ordinary Shares and Avalara Inc are also represented in the VBK’s holdings at 0.56% and 0.55%.
Risk Analysis
| DIA | VBK | |
| Mean Return | 1.13 | 1.22 |
| R-squared | 93.31 | 80.56 |
| Std. Deviation | 13.68 | 17.95 |
| Alpha | -0.94 | -2.81 |
| Beta | 0.97 | 1.18 |
| Sharpe Ratio | 0.94 | 0.78 |
| Treynor Ratio | 13.07 | 11.18 |
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Sharpe Ratio of 0.94 with a Beta of 0.97 and a Alpha of -0.94. Its R-squared is 93.31 while DIA’s Standard Deviation is 13.68. Furthermore, the fund has a Treynor Ratio of 13.07 and a Mean Return of 1.13.
The Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) has a Mean Return of 1.22 with a R-squared of 80.56 and a Standard Deviation of 17.95. Its Treynor Ratio is 11.18 while VBK’s Alpha is -2.81. Furthermore, the fund has a Beta of 1.18 and a Sharpe Ratio of 0.78.
DIA’s Mean Return is 0.09 points lower than that of VBK and its R-squared is 12.75 points higher. With a Standard Deviation of 13.68, DIA is slightly less volatile than VBK. The Alpha and Beta of DIA are 1.87 points higher and 0.21 points lower than VBK’s Alpha and Beta.
Performance
Annual Returns
| Year | DIA | VBK |
| 2020 | 9.63% | 35.29% |
| 2019 | 25.09% | 32.75% |
| 2018 | -3.6% | -5.68% |
| 2017 | 27.97% | 21.9% |
| 2016 | 16.28% | 10.74% |
| 2015 | 0.1% | -2.51% |
| 2014 | 9.88% | 4.02% |
| 2013 | 29.41% | 38.18% |
| 2012 | 10.04% | 17.67% |
| 2011 | 8.21% | -1.43% |
| 2010 | 13.87% | 30.87% |
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 VBK, returning 38.18% on an annual basis. The poorest year for VBK in the last ten years was 2018, with a yield of -5.68%. Most years the Vanguard Small-Cap Growth Index Fund ETF Shares has given investors modest returns, such as in 2016, 2012, and 2017, when gains were 10.74%, 17.67%, and 21.9% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| DIA | $10,000 | $37,965 | 13.35% |
| VBK | $10,000 | $48,639 | 16.53% |
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 VBK, the end total would have been $48,639. This equates to a $38,639 profit over 11 years and a compound annual growth rate (CAGR) of 16.53%.
DIA’s CAGR is 3.17 percentage points lower than that of VBK and as a result, would have yielded $10,674 less on a $10,000 investment. Thus, DIA performed worse than VBK by 3.17% annually.
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