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ITOT vs. DIA: What’s The Difference?

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. ITOT is a iShares Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between ITOT and DIA? And which fund is better?

The expense ratio of ITOT is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%). ITOT also has a higher exposure to the technology sector and a higher standard deviation. Overall, ITOT has provided higher returns than DIA over the past ten years.

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

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Summary

ITOTDIA
NameiShares Core S&P Total U.S. Stock Market ETFSPDR Dow Jones Industrial Average ETF Trust
CategoryLarge BlendLarge Value
IssueriSharesSPDR State Street Global Advisors
AUM41.97B30.46B
Avg. Return14.59%13.35%
Div. Yield1.2%1.61%
Expense Ratio0.03%0.16%

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.

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%.

ITOT’s dividend yield is 0.41% lower than that of DIA (1.2% vs. 1.61%). Also, ITOT yielded on average 1.24% more per year over the past decade (14.59% vs. 13.35%). The expense ratio of ITOT is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%).

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Fund Composition

Industry Exposure

ITOT vs. DIA - Industry Exposure

ITOTDIA
Technology24.49%17.32%
Industrials9.21%16.7%
Energy2.51%2.0%
Communication Services10.54%4.42%
Utilities2.35%0.0%
Healthcare13.59%17.92%
Consumer Defensive5.79%6.3%
Real Estate3.67%0.0%
Financial Services13.69%20.68%
Consumer Cyclical11.69%13.44%
Basic Materials2.47%1.21%

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 24.49%. This is followed by Financial Services and Healthcare at 13.69% and 13.59% respectively. Basic Materials (2.47%), Energy (2.51%), and Real Estate (3.67%) only make up 8.65% of the fund’s total assets.

ITOT’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.79%, 9.21%, 10.54%, 11.69%, and 13.59%.

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%.

ITOT is 7.17% more exposed to the Technology sector than DIA (24.49% vs 17.32%). ITOT’s exposure to Financial Services and Healthcare stocks is 6.99% lower and 4.33% lower respectively (13.69% vs. 20.68% and 13.59% vs. 17.92%). In total, Basic Materials, Energy, and Real Estate also make up 5.44% more of the fund’s holdings compared to DIA (8.65% vs. 3.21%).

Holdings

ITOT - Holdings

ITOT HoldingsWeight
Apple Inc5.07%
Microsoft Corp4.75%
Amazon.com Inc3.16%
Facebook Inc Class A1.89%
Alphabet Inc Class A1.79%
Alphabet Inc Class C1.71%
Tesla Inc1.17%
Berkshire Hathaway Inc Class B1.17%
NVIDIA Corp1.08%
JPMorgan Chase & Co1.02%

ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.

Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.

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%.

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Risk Analysis

ITOTDIA
Mean Return1.271.13
R-squared99.493.31
Std. Deviation14.0213.68
Alpha-0.54-0.94
Beta1.030.97
Sharpe Ratio1.040.94
Treynor Ratio14.1313.07

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Alpha of -0.54 with a R-squared of 99.4 and a Sharpe Ratio of 1.04. Its Treynor Ratio is 14.13 while ITOT’s Standard Deviation is 14.02. Furthermore, the fund has a Beta of 1.03 and a Mean Return of 1.27.

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

ITOT’s Mean Return is 0.14 points higher than that of DIA and its R-squared is 6.09 points higher. With a Standard Deviation of 14.02, ITOT is slightly more volatile than DIA. The Alpha and Beta of ITOT are 0.40 points higher and 0.06 points higher than DIA’s Alpha and Beta.

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Performance

Annual Returns

ITOT vs. DIA - Annual Returns

YearITOTDIA
202020.75%9.63%
201930.87%25.09%
2018-5.27%-3.6%
201721.23%27.97%
201612.59%16.28%
20150.96%0.1%
201413.01%9.88%
201332.67%29.41%
201215.98%10.04%
20111.55%8.21%
201016.15%13.87%

ITOT had its best year in 2013 with an annual return of 32.67%. ITOT’s worst year over the past decade yielded -5.27% and occurred in 2018. In most years the iShares Core S&P Total U.S. Stock Market ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 13.01%, 15.98%, and 16.15% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

ITOT vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
ITOT$10,000$42,31014.59%
DIA$10,000$37,96513.35%

A $10,000 investment in ITOT would have resulted in a final balance of $42,310. This is a profit of $32,310 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.59%.

With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

ITOT’s CAGR is 1.24 percentage points higher than that of DIA and as a result, would have yielded $4,345 more on a $10,000 investment. Thus, ITOT outperformed DIA by 1.24% annually.


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