The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. ITOT is a iShares Large Blend fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between ITOT and IWP? And which fund is better?
The expense ratio of ITOT is 0.21 percentage points lower than IWP’s (0.03% vs. 0.24%). ITOT also has a lower exposure to the technology sector and a lower standard deviation. Overall, ITOT has provided lower returns than IWP over the past ten years.
In this article, we’ll compare ITOT vs. IWP. We’ll look at holdings and industry exposure, as well as at their portfolio growth and performance. Moreover, I’ll also discuss ITOT’s and IWP’s risk metrics, annual returns, and fund composition and examine how these affect their overall returns.
Summary
| ITOT | IWP | |
| Name | iShares Core S&P Total U.S. Stock Market ETF | iShares Russell Mid-Cap Growth ETF |
| Category | Large Blend | Mid-Cap Growth |
| Issuer | iShares | iShares |
| AUM | 41.97B | 15.7B |
| Avg. Return | 14.59% | 16.75% |
| Div. Yield | 1.2% | 0.26% |
| Expense Ratio | 0.03% | 0.24% |
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 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%.
ITOT’s dividend yield is 0.94% higher than that of IWP (1.2% vs. 0.26%). Also, ITOT yielded on average 2.16% less per year over the past decade (14.59% vs. 16.75%). The expense ratio of ITOT is 0.21 percentage points lower than IWP’s (0.03% vs. 0.24%).
Fund Composition
Industry Exposure
| ITOT | IWP | |
| Technology | 24.49% | 33.88% |
| Industrials | 9.21% | 14.09% |
| Energy | 2.51% | 1.51% |
| Communication Services | 10.54% | 6.32% |
| Utilities | 2.35% | 0.16% |
| Healthcare | 13.59% | 16.79% |
| Consumer Defensive | 5.79% | 2.32% |
| Real Estate | 3.67% | 2.46% |
| Financial Services | 13.69% | 4.52% |
| Consumer Cyclical | 11.69% | 16.09% |
| Basic Materials | 2.47% | 1.86% |
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 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%.
ITOT is 9.39% less exposed to the Technology sector than IWP (24.49% vs 33.88%). ITOT’s exposure to Financial Services and Healthcare stocks is 9.17% higher and 3.20% lower respectively (13.69% vs. 4.52% and 13.59% vs. 16.79%). In total, Basic Materials, Energy, and Real Estate also make up 2.82% more of the fund’s holdings compared to IWP (8.65% vs. 5.83%).
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%.
| IWP Holdings | Weight |
| IDEXX Laboratories Inc | 1.3% |
| DocuSign Inc | 1.3% |
| Roku Inc Class A | 1.29% |
| Match Group Inc | 1.06% |
| Chipotle Mexican Grill Inc | 1.06% |
| Pinterest Inc | 1.05% |
| Veeva Systems Inc Class A | 1.04% |
| Palantir Technologies Inc Ordinary Shares – Class A | 1.04% |
| Lululemon Athletica Inc | 1.01% |
| DexCom Inc | 1.0% |
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%.
Risk Analysis
| ITOT | IWP | |
| Mean Return | 1.27 | 1.27 |
| R-squared | 99.4 | 87.01 |
| Std. Deviation | 14.02 | 16.05 |
| Alpha | -0.54 | -1.03 |
| Beta | 1.03 | 1.1 |
| Sharpe Ratio | 1.04 | 0.91 |
| Treynor Ratio | 14.13 | 12.98 |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Alpha of -0.54 with a Treynor Ratio of 14.13 and a Beta of 1.03. Its R-squared is 99.4 while ITOT’s Standard Deviation is 14.02. Furthermore, the fund has a Sharpe Ratio of 1.04 and a Mean Return of 1.27.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Treynor Ratio of 12.98 with a Beta of 1.1 and a Alpha of -1.03. Its Sharpe Ratio is 0.91 while IWP’s Standard Deviation is 16.05. Furthermore, the fund has a Mean Return of 1.27 and a R-squared of 87.01.
ITOT’s Mean Return is 0.00 points lower than that of IWP and its R-squared is 12.39 points higher. With a Standard Deviation of 14.02, ITOT is slightly less volatile than IWP. The Alpha and Beta of ITOT are 0.49 points higher and 0.07 points lower than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | ITOT | IWP |
| 2020 | 20.75% | 35.29% |
| 2019 | 30.87% | 35.14% |
| 2018 | -5.27% | -4.95% |
| 2017 | 21.23% | 24.98% |
| 2016 | 12.59% | 7.15% |
| 2015 | 0.96% | -0.39% |
| 2014 | 13.01% | 11.68% |
| 2013 | 32.67% | 35.44% |
| 2012 | 15.98% | 15.62% |
| 2011 | 1.55% | -1.82% |
| 2010 | 16.15% | 26.1% |
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 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.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| ITOT | $10,000 | $42,310 | 14.59% |
| IWP | $10,000 | $50,191 | 16.75% |
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 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%.
ITOT’s CAGR is 2.16 percentage points lower than that of IWP and as a result, would have yielded $7,881 less on a $10,000 investment. Thus, ITOT performed worse than IWP by 2.16% annually.
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