The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the iShares S&P 500 Growth ETF (IVW) are both among the Top 100 ETFs. ITOT is a iShares Large Blend fund and IVW is a iShares Large Growth fund. So, what’s the difference between ITOT and IVW? And which fund is better?
The expense ratio of ITOT is 0.15 percentage points lower than IVW’s (0.03% vs. 0.18%). ITOT also has a lower exposure to the technology sector and a higher standard deviation. Overall, ITOT has provided lower returns than IVW over the past ten years.
In this article, we’ll compare ITOT vs. IVW. We’ll look at fund composition and performance, as well as at their industry exposure and annual returns. Moreover, I’ll also discuss ITOT’s and IVW’s risk metrics, holdings, and portfolio growth and examine how these affect their overall returns.
Summary
| ITOT | IVW | |
| Name | iShares Core S&P Total U.S. Stock Market ETF | iShares S&P 500 Growth ETF |
| Category | Large Blend | Large Growth |
| Issuer | iShares | iShares |
| AUM | 41.97B | 35.72B |
| Avg. Return | 14.59% | 16.74% |
| Div. Yield | 1.2% | 0.61% |
| Expense Ratio | 0.03% | 0.18% |
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 iShares S&P 500 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.
ITOT’s dividend yield is 0.59% higher than that of IVW (1.2% vs. 0.61%). Also, ITOT yielded on average 2.15% less per year over the past decade (14.59% vs. 16.74%). The expense ratio of ITOT is 0.15 percentage points lower than IVW’s (0.03% vs. 0.18%).
Fund Composition
Industry Exposure
| ITOT | IVW | |
| Technology | 24.49% | 37.8% |
| Industrials | 9.21% | 5.72% |
| Energy | 2.51% | 0.06% |
| Communication Services | 10.54% | 15.44% |
| Utilities | 2.35% | 0.47% |
| Healthcare | 13.59% | 11.88% |
| Consumer Defensive | 5.79% | 3.84% |
| Real Estate | 3.67% | 1.11% |
| Financial Services | 13.69% | 6.78% |
| Consumer Cyclical | 11.69% | 15.25% |
| Basic Materials | 2.47% | 1.65% |
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 iShares S&P 500 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.
IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.
ITOT is 13.31% less exposed to the Technology sector than IVW (24.49% vs 37.8%). ITOT’s exposure to Financial Services and Healthcare stocks is 6.91% higher and 1.71% higher respectively (13.69% vs. 6.78% and 13.59% vs. 11.88%). In total, Basic Materials, Energy, and Real Estate also make up 5.83% more of the fund’s holdings compared to IVW (8.65% vs. 2.82%).
Holdings
| ITOT Holdings | Weight |
| Apple Inc | 5.07% |
| Microsoft Corp | 4.75% |
| Amazon.com Inc | 3.16% |
| Facebook Inc Class A | 1.89% |
| Alphabet Inc Class A | 1.79% |
| Alphabet Inc Class C | 1.71% |
| Tesla Inc | 1.17% |
| Berkshire Hathaway Inc Class B | 1.17% |
| NVIDIA Corp | 1.08% |
| JPMorgan Chase & Co | 1.02% |
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%.
| IVW Holdings | Weight |
| Apple Inc | 11.46% |
| Microsoft Corp | 10.75% |
| Amazon.com Inc | 7.14% |
| Facebook Inc Class A | 4.28% |
| Alphabet Inc Class A | 4.06% |
| Alphabet Inc Class C | 3.86% |
| Tesla Inc | 2.65% |
| NVIDIA Corp | 2.43% |
| PayPal Holdings Inc | 1.62% |
| Adobe Inc | 1.49% |
IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.
Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.
Risk Analysis
| ITOT | IVW | |
| Mean Return | 1.27 | 1.44 |
| R-squared | 99.4 | 93.82 |
| Std. Deviation | 14.02 | 13.77 |
| Alpha | -0.54 | 2.19 |
| Beta | 1.03 | 0.98 |
| Sharpe Ratio | 1.04 | 1.21 |
| Treynor Ratio | 14.13 | 17.24 |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Alpha of -0.54 with a Mean Return of 1.27 and a Treynor Ratio of 14.13. Its Sharpe Ratio is 1.04 while ITOT’s Beta is 1.03. Furthermore, the fund has a R-squared of 99.4 and a Standard Deviation of 14.02.
The iShares S&P 500 Growth ETF (IVW) has a Sharpe Ratio of 1.21 with a Mean Return of 1.44 and a Beta of 0.98. Its Standard Deviation is 13.77 while IVW’s Alpha is 2.19. Furthermore, the fund has a R-squared of 93.82 and a Treynor Ratio of 17.24.
ITOT’s Mean Return is 0.17 points lower than that of IVW and its R-squared is 5.58 points higher. With a Standard Deviation of 14.02, ITOT is slightly more volatile than IVW. The Alpha and Beta of ITOT are 2.73 points lower and 0.05 points higher than IVW’s Alpha and Beta.
Performance
Annual Returns
| Year | ITOT | IVW |
| 2020 | 20.75% | 33.21% |
| 2019 | 30.87% | 30.91% |
| 2018 | -5.27% | -0.17% |
| 2017 | 21.23% | 27.2% |
| 2016 | 12.59% | 6.74% |
| 2015 | 0.96% | 5.33% |
| 2014 | 13.01% | 14.67% |
| 2013 | 32.67% | 32.48% |
| 2012 | 15.98% | 14.39% |
| 2011 | 1.55% | 4.49% |
| 2010 | 16.15% | 14.84% |
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 2020 was the strongest year for IVW, returning 33.21% on an annual basis. The poorest year for IVW in the last ten years was 2018, with a yield of -0.17%. Most years the iShares S&P 500 Growth ETF has given investors modest returns, such as in 2012, 2014, and 2010, when gains were 14.39%, 14.67%, and 14.84% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| ITOT | $10,000 | $42,310 | 14.59% |
| IVW | $10,000 | $51,915 | 16.74% |
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 IVW, the end total would have been $51,915. This equates to a $41,915 profit over 11 years and a compound annual growth rate (CAGR) of 16.74%.
ITOT’s CAGR is 2.15 percentage points lower than that of IVW and as a result, would have yielded $9,605 less on a $10,000 investment. Thus, ITOT performed worse than IVW by 2.15% annually.
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