DIA vs. VV: What’s The Difference?

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Vanguard Large-Cap Index Fund ETF Shares (VV) are both among the Top 100 ETFs. DIA is a SPDR State Street Global Advisors Large Value fund and VV is a Vanguard Large Blend fund. So, what’s the difference between DIA and VV? And which fund is better?

The expense ratio of DIA is 0.12 percentage points higher than VV’s (0.16% vs. 0.04%). DIA also has a higher exposure to the financial services sector and a lower standard deviation. Overall, DIA has provided lower returns than VV over the past 11 years.

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

Summary

DIA VV
Name SPDR Dow Jones Industrial Average ETF Trust Vanguard Large-Cap Index Fund ETF Shares
Category Large Value Large Blend
Issuer SPDR State Street Global Advisors Vanguard
AUM 30.46B 37.65B
Avg. Return 13.35% 14.75%
Div. Yield 1.61% 1.26%
Expense Ratio 0.16% 0.04%

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 Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.

DIA’s dividend yield is 0.35% higher than that of VV (1.61% vs. 1.26%). Also, DIA yielded on average 1.39% less per year over the past decade (13.35% vs. 14.75%). The expense ratio of DIA is 0.12 percentage points higher than VV’s (0.16% vs. 0.04%).

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Fund Composition

Industry Exposure

DIA vs. VV - Industry Exposure

DIA VV
Technology 17.32% 25.38%
Industrials 16.7% 8.39%
Energy 2.0% 2.62%
Communication Services 4.42% 11.68%
Utilities 0.0% 2.35%
Healthcare 17.92% 13.22%
Consumer Defensive 6.3% 6.06%
Real Estate 0.0% 2.7%
Financial Services 20.68% 13.82%
Consumer Cyclical 13.44% 11.65%
Basic Materials 1.21% 2.13%

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 Large-Cap Index Fund ETF Shares (VV) has the most exposure to the Technology sector at 25.38%. This is followed by Financial Services and Healthcare at 13.82% and 13.22% respectively. Utilities (2.35%), Energy (2.62%), and Real Estate (2.7%) only make up 7.67% of the fund’s total assets.

VV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Consumer Cyclical, Communication Services, and Healthcare stocks at 6.06%, 8.39%, 11.65%, 11.68%, and 13.22%.

DIA is 6.86% more exposed to the Financial Services sector than VV (20.68% vs 13.82%). DIA’s exposure to Healthcare and Technology stocks is 4.70% higher and 8.06% lower respectively (17.92% vs. 13.22% and 17.32% vs. 25.38%). In total, Utilities, Basic Materials, and Energy also make up 3.89% less of the fund’s holdings compared to VV (3.21% vs. 7.10%).

Holdings

DIA - 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%.

VV - Holdings

VV Holdings Weight
Apple Inc 5.7%
Microsoft Corp 5.35%
Amazon.com Inc 3.87%
Facebook Inc Class A 2.19%
Alphabet Inc Class A 1.93%
Alphabet Inc Class C 1.81%
Tesla Inc 1.37%
Berkshire Hathaway Inc Class B 1.3%
NVIDIA Corp 1.24%
JPMorgan Chase & Co 1.24%

VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.

Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.

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Risk Analysis

DIA VV
Mean Return 1.13 1.24
R-squared 93.31 99.86
Std. Deviation 13.68 13.75
Alpha -0.94 -0.08
Beta 0.97 1.01
Sharpe Ratio 0.94 1.04
Treynor Ratio 13.07 14.14

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

The Vanguard Large-Cap Index Fund ETF Shares (VV) has a Beta of 1.01 with a Sharpe Ratio of 1.04 and a R-squared of 99.86. Its Treynor Ratio is 14.14 while VV’s Alpha is -0.08. Furthermore, the fund has a Mean Return of 1.24 and a Standard Deviation of 13.75.

DIA’s Mean Return is 0.11 points lower than that of VV and its R-squared is 6.55 points lower. With a Standard Deviation of 13.68, DIA is slightly less volatile than VV. The Alpha and Beta of DIA are 0.86 points lower and 0.04 points lower than VV’s Alpha and Beta.

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Performance

Annual Returns

DIA vs. VV - Annual Returns

Year DIA VV
2020 9.63% 20.99%
2019 25.09% 31.39%
2018 -3.6% -4.44%
2017 27.97% 22.03%
2016 16.28% 11.65%
2015 0.1% 1.07%
2014 9.88% 13.39%
2013 29.41% 32.65%
2012 10.04% 16.09%
2011 8.21% 1.58%
2010 13.87% 15.81%

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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.

Portfolio Growth

DIA vs. VV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
DIA $10,000 $37,965 13.35%
VV $10,000 $42,970 14.75%

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 VV, the end total would have been $42,970. This equates to a $32,970 profit over 11 years and a compound annual growth rate (CAGR) of 14.75%.

DIA’s CAGR is 1.39 percentage points lower than that of VV and as a result, would have yielded $5,005 less on a $10,000 investment. Thus, DIA performed worse than VV by 1.39% annually.


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