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IVE vs. IUSB: What’s The Difference?

The iShares S&P 500 Value ETF (IVE) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. IVE is a iShares Large Value fund and IUSB is a iShares N/A fund. So, what’s the difference between IVE and IUSB? And which fund is better?

The expense ratio of IVE is 0.12 percentage points higher than IUSB’s (0.18% vs. 0.06%). IVE also has a high exposure to the financial services sector while IUSB is mostly comprised of AAA bonds. Overall, IVE has provided higher returns than IUSB over the past 6 years.

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

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Summary

IVEIUSB
NameiShares S&P 500 Value ETFiShares Core Total USD Bond Market ETF
CategoryLarge ValueN/A
IssueriSharesiShares
AUM22.4B14.49B
Avg. Return11.68%4.13%
Div. Yield1.88%2.1%
Expense Ratio0.18%0.06%

The iShares S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

The iShares Core Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.

IVE’s dividend yield is 0.22% lower than that of IUSB (1.88% vs. 2.1%). Also, IVE yielded on average 7.56% more per year over the past decade (11.68% vs. 4.13%). The expense ratio of IVE is 0.12 percentage points higher than IUSB’s (0.18% vs. 0.06%).

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Fund Composition

Holdings

IVE - Holdings

IVE HoldingsWeight
Berkshire Hathaway Inc Class B3.05%
JPMorgan Chase & Co2.65%
The Walt Disney Co1.85%
Bank of America Corp1.67%
Johnson & Johnson1.57%
Exxon Mobil Corp1.41%
Pfizer Inc1.38%
Cisco Systems Inc1.35%
Verizon Communications Inc1.33%
Intel Corp1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

IUSB - Holdings

IUSB Bond SectorsWeight
AAA58.32%
BBB16.98%
A12.27%
BB4.33%
AA3.36%
B2.8%
Others1.01%
Below B0.92%
US Government0.0%

IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.

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Risk Analysis

IVEIUSB
Mean Return1.050
R-squared92.080
Std. Deviation14.30
Alpha-2.90
Beta1.010
Sharpe Ratio0.830
Treynor Ratio11.410

The iShares S&P 500 Value ETF (IVE) has a Alpha of -2.9 with a Treynor Ratio of 11.41 and a Sharpe Ratio of 0.83. Its Mean Return is 1.05 while IVE’s R-squared is 92.08. Furthermore, the fund has a Standard Deviation of 14.3 and a Beta of 1.01.

The iShares Core Total USD Bond Market ETF (IUSB) has a Mean Return of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Sharpe Ratio is 0 while IUSB’s R-squared is 0. Furthermore, the fund has a Standard Deviation of 0 and a Beta of 0.

IVE’s Mean Return is 1.05 points higher than that of IUSB and its R-squared is 92.08 points higher. With a Standard Deviation of 14.3, IVE is slightly more volatile than IUSB. The Alpha and Beta of IVE are 2.90 points lower and 1.01 points higher than IUSB’s Alpha and Beta.

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Performance

Annual Returns

IVE vs. IUSB - Annual Returns

YearIVEIUSB
20201.24%7.59%
201931.71%9.26%
2018-9.09%-0.38%
201715.19%4.06%
201617.17%3.78%
2015-3.24%0.46%
201412.14%0.0%
201331.69%0.0%
201217.45%0.0%
2011-0.63%0.0%
201014.9%0.0%

IVE had its best year in 2019 with an annual return of 31.71%. IVE’s worst year over the past decade yielded -9.09% and occurred in 2018. In most years the iShares S&P 500 Value ETF provided moderate returns such as in 2014, 2010, and 2017 where annual returns amounted to 12.14%, 14.9%, and 15.19% respectively.

The year 2019 was the strongest year for IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.

Portfolio Growth

IVE vs. IUSB - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVE$10,000$15,83111.68%
IUSB$10,000$12,7044.13%

A $10,000 investment in IVE would have resulted in a final balance of $15,831. This is a profit of $5,831 over 6 years and amounts to a compound annual growth rate (CAGR) of 11.68%.

With a $10,000 investment in IUSB, the end total would have been $12,704. This equates to a $2,704 profit over 6 years and a compound annual growth rate (CAGR) of 4.13%.

IVE’s CAGR is 7.56 percentage points higher than that of IUSB and as a result, would have yielded $3,127 more on a $10,000 investment. Thus, IVE outperformed IUSB by 7.56% annually.


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