The iShares Gold Trust (IAU) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. IAU is a iShares N/A fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between IAU and IWP? And which fund is better?
The expense ratio of IAU is 0.01 percentage points higher than IWP’s (0.25% vs. 0.24%). IAU also has a lower exposure to the technology sector and a higher standard deviation. Overall, IAU has provided lower returns than IWP over the past 11 years.
In this article, we’ll compare IAU vs. IWP. We’ll look at risk metrics and performance, as well as at their holdings and industry exposure. Moreover, I’ll also discuss IAU’s and IWP’s fund composition, annual returns, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Gold Trust||iShares Russell Mid-Cap Growth ETF|
The iShares Gold Trust (IAU) is a N/A fund that is issued by iShares. It currently has 28.61B total assets under management and has yielded an average annual return of 6.03% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.25%.
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%.
IAU’s dividend yield is 0.26% lower than that of IWP (0.0% vs. 0.26%). Also, IAU yielded on average 10.72% less per year over the past decade (6.03% vs. 16.75%). The expense ratio of IAU is 0.01 percentage points higher than IWP’s (0.25% vs. 0.24%).
The iShares Gold Trust (IAU) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
IAU’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
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%.
IAU is 33.88% less exposed to the Technology sector than IWP (0.0% vs 33.88%). IAU’s exposure to Industrials and Energy stocks is 14.09% lower and 1.51% lower respectively (0.0% vs. 14.09% and 0.0% vs. 1.51%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 23.07% less of the fund’s holdings compared to IWP (0.00% vs. 23.07%).
IAU’s Top Holdings are Gold, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the IAU’s holdings at 0% and 0%.
|IDEXX Laboratories Inc||1.3%|
|Roku Inc Class A||1.29%|
|Match Group Inc||1.06%|
|Chipotle Mexican Grill Inc||1.06%|
|Veeva Systems Inc Class A||1.04%|
|Palantir Technologies Inc Ordinary Shares – Class A||1.04%|
|Lululemon Athletica Inc||1.01%|
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%.
The iShares Gold Trust (IAU) has a Beta of 0.48 with a Mean Return of 0.23 and a Alpha of 4.16. Its Treynor Ratio is 1.5 while IAU’s Sharpe Ratio is 0.13. Furthermore, the fund has a Standard Deviation of 16.97 and a R-squared of 16.03.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Sharpe Ratio of 0.91 with a Beta of 1.1 and a Treynor Ratio of 12.98. Its R-squared is 87.01 while IWP’s Alpha is -1.03. Furthermore, the fund has a Mean Return of 1.27 and a Standard Deviation of 16.05.
IAU’s Mean Return is 1.04 points lower than that of IWP and its R-squared is 70.98 points lower. With a Standard Deviation of 16.97, IAU is slightly more volatile than IWP. The Alpha and Beta of IAU are 5.19 points higher and 0.62 points lower than IWP’s Alpha and Beta.
IAU had its best year in 2010 with an annual return of 27.93%. IAU’s worst year over the past decade yielded -27.96% and occurred in 2013. In most years the iShares Gold Trust provided moderate returns such as in 2012, 2011, and 2016 where annual returns amounted to 8.37%, 8.66%, and 8.85% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IAU would have resulted in a final balance of $16,786. This is a profit of $6,786 over 11 years and amounts to a compound annual growth rate (CAGR) of 6.03%.
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%.
IAU’s CAGR is 10.72 percentage points lower than that of IWP and as a result, would have yielded $33,405 less on a $10,000 investment. Thus, IAU performed worse than IWP by 10.72% annually.
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