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DIA vs. VLUE: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares MSCI USA Value Factor ETF (VLUE) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and VLUE is a iShares Large Value fund. So, what’s the difference between DIA and VLUE? And which fund is better?

The expense ratio of DIA is 0.01 percentage points higher than VLUE’s (0.16% vs. 0.15%). DIA also has a higher exposure to the financial services sector and a higher standard deviation. Overall, DIA has provided higher returns than VLUE over the past ten years.

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

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Summary

DIAVLUE
NameSPDR Dow Jones Industrial Average ETF TrustiShares MSCI USA Value Factor ETF
CategoryLarge ValueLarge Value
IssuerSPDR State Street Global AdvisorsiShares
AUM30.46B15.95B
Avg. Return13.35%8.91%
Div. Yield1.61%1.89%
Expense Ratio0.16%0.15%

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 USA Value Factor ETF (VLUE) is a Large Value fund that is issued by iShares. It currently has 15.95B total assets under management and has yielded an average annual return of 8.91% over the past 10 years. The fund has a dividend yield of 1.89% with an expense ratio of 0.15%.

DIA’s dividend yield is 0.28% lower than that of VLUE (1.61% vs. 1.89%). Also, DIA yielded on average 4.44% more per year over the past decade (13.35% vs. 8.91%). The expense ratio of DIA is 0.01 percentage points higher than VLUE’s (0.16% vs. 0.15%).

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Fund Composition

Industry Exposure

DIA vs. VLUE - Industry Exposure

DIAVLUE
Technology17.32%26.89%
Industrials16.7%9.14%
Energy2.0%2.42%
Communication Services4.42%10.39%
Utilities0.0%2.68%
Healthcare17.92%14.31%
Consumer Defensive6.3%7.22%
Real Estate0.0%3.19%
Financial Services20.68%10.96%
Consumer Cyclical13.44%10.66%
Basic Materials1.21%2.14%

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 USA Value Factor ETF (VLUE) has the most exposure to the Technology sector at 26.89%. This is followed by Healthcare and Financial Services at 14.31% and 10.96% respectively. Energy (2.42%), Utilities (2.68%), and Real Estate (3.19%) only make up 8.29% of the fund’s total assets.

VLUE’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Financial Services stocks at 7.22%, 9.14%, 10.39%, 10.66%, and 10.96%.

DIA is 9.72% more exposed to the Financial Services sector than VLUE (20.68% vs 10.96%). DIA’s exposure to Healthcare and Technology stocks is 3.61% higher and 9.57% lower respectively (17.92% vs. 14.31% and 17.32% vs. 26.89%). In total, Utilities, Basic Materials, and Energy also make up 4.03% less of the fund’s holdings compared to VLUE (3.21% vs. 7.24%).

Holdings

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

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%.

VLUE - Holdings

VLUE HoldingsWeight
AT&T Inc7.13%
Intel Corp6.14%
General Motors Co3.19%
Micron Technology Inc3.14%
Cisco Systems Inc3.05%
International Business Machines Corp2.76%
Target Corp2.38%
Citigroup Inc2.32%
Ford Motor Co2.23%
Pfizer Inc2.17%

VLUE’s Top Holdings are AT&T Inc, Intel Corp, General Motors Co, Micron Technology Inc, and Cisco Systems Inc at 7.13%, 6.14%, 3.19%, 3.14%, and 3.05%.

International Business Machines Corp (2.76%), Target Corp (2.38%), and Citigroup Inc (2.32%) have a slightly smaller but still significant weight. Ford Motor Co and Pfizer Inc are also represented in the VLUE’s holdings at 2.23% and 2.17%.

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Risk Analysis

DIAVLUE
Mean Return1.130
R-squared93.310
Std. Deviation13.680
Alpha-0.940
Beta0.970
Sharpe Ratio0.940
Treynor Ratio13.070

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a Alpha of -0.94 and a Mean Return of 1.13. Its Treynor Ratio is 13.07 while DIA’s R-squared is 93.31. Furthermore, the fund has a Sharpe Ratio of 0.94 and a Standard Deviation of 13.68.

The iShares MSCI USA Value Factor ETF (VLUE) has a Treynor Ratio of 0 with a Alpha of 0 and a Sharpe Ratio of 0. Its Mean Return is 0 while VLUE’s R-squared is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.

DIA’s Mean Return is 1.13 points higher than that of VLUE and its R-squared is 93.31 points higher. With a Standard Deviation of 13.68, DIA is slightly more volatile than VLUE. The Alpha and Beta of DIA are 0.94 points lower and 0.97 points higher than VLUE’s Alpha and Beta.

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Performance

Annual Returns

DIA vs. VLUE - Annual Returns

YearDIAVLUE
20209.63%-0.32%
201925.09%27.47%
2018-3.6%-11.18%
201727.97%21.97%
201616.28%15.68%
20150.1%-3.54%
20149.88%12.29%
201329.41%0.0%
201210.04%0.0%
20118.21%0.0%
201013.87%0.0%

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 VLUE, returning 27.47% on an annual basis. The poorest year for VLUE in the last ten years was 2018, with a yield of -11.18%. Most years the iShares MSCI USA Value Factor ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.

Portfolio Growth

DIA vs. VLUE - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
DIA$10,000$21,63613.35%
VLUE$10,000$17,2478.91%

A $10,000 investment in DIA would have resulted in a final balance of $21,636. This is a profit of $11,636 over 7 years and amounts to a compound annual growth rate (CAGR) of 13.35%.

With a $10,000 investment in VLUE, the end total would have been $17,247. This equates to a $7,247 profit over 7 years and a compound annual growth rate (CAGR) of 8.91%.

DIA’s CAGR is 4.44 percentage points higher than that of VLUE and as a result, would have yielded $4,389 more on a $10,000 investment. Thus, DIA outperformed VLUE by 4.44% annually.


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