The iShares S&P 500 Value ETF (IVE) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. IVE is a iShares Large Value fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between IVE and IWP? And which fund is better?

The expense ratio of IVE is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%). IVE also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IVE has provided lower returns than IWP over the past 11 years.

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

Summary

IVEIWP
NameiShares S&P 500 Value ETFiShares Russell Mid-Cap Growth ETF
CategoryLarge ValueMid-Cap Growth
IssueriSharesiShares
AUM22.4B15.7B
Avg. Return11.68%16.75%
Div. Yield1.88%0.26%
Expense Ratio0.18%0.24%

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 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%.

IVE’s dividend yield is 1.62% higher than that of IWP (1.88% vs. 0.26%). Also, IVE yielded on average 5.06% less per year over the past decade (11.68% vs. 16.75%). The expense ratio of IVE is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%).

Fund Composition

Industry Exposure

IVE vs. IWP - Industry Exposure

IVEIWP
Technology9.41%33.88%
Industrials12.19%14.09%
Energy5.43%1.51%
Communication Services6.4%6.32%
Utilities4.82%0.16%
Healthcare15.4%16.79%
Consumer Defensive9.23%2.32%
Real Estate4.38%2.46%
Financial Services22.06%4.52%
Consumer Cyclical7.68%16.09%
Basic Materials2.99%1.86%

The iShares S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

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%.

IVE is 17.54% more exposed to the Financial Services sector than IWP (22.06% vs 4.52%). IVE’s exposure to Healthcare and Industrials stocks is 1.39% lower and 1.90% lower respectively (15.4% vs. 16.79% and 12.19% vs. 14.09%). In total, Real Estate, Utilities, and Energy also make up 10.50% more of the fund’s holdings compared to IWP (14.63% vs. 4.13%).

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%.

IWP - Holdings

IWP HoldingsWeight
IDEXX Laboratories Inc1.3%
DocuSign Inc1.3%
Roku Inc Class A1.29%
Match Group Inc1.06%
Chipotle Mexican Grill Inc1.06%
Pinterest Inc1.05%
Veeva Systems Inc Class A1.04%
Palantir Technologies Inc Ordinary Shares – Class A1.04%
Lululemon Athletica Inc1.01%
DexCom Inc1.0%

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

IVEIWP
Mean Return1.051.27
R-squared92.0887.01
Std. Deviation14.316.05
Alpha-2.9-1.03
Beta1.011.1
Sharpe Ratio0.830.91
Treynor Ratio11.4112.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Alpha of -1.03 with a Mean Return of 1.27 and a Treynor Ratio of 12.98. Its Standard Deviation is 16.05 while IWP’s R-squared is 87.01. Furthermore, the fund has a Beta of 1.1 and a Sharpe Ratio of 0.91.

IVE’s Mean Return is 0.22 points lower than that of IWP and its R-squared is 5.07 points higher. With a Standard Deviation of 14.3, IVE is slightly less volatile than IWP. The Alpha and Beta of IVE are 1.87 points lower and 0.09 points lower than IWP’s Alpha and Beta.

Performance

Annual Returns

IVE vs. IWP - Annual Returns

YearIVEIWP
20201.24%35.29%
201931.71%35.14%
2018-9.09%-4.95%
201715.19%24.98%
201617.17%7.15%
2015-3.24%-0.39%
201412.14%11.68%
201331.69%35.44%
201217.45%15.62%
2011-0.63%-1.82%
201014.9%26.1%

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 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

IVE vs. IWP - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVE$10,000$31,35011.68%
IWP$10,000$50,19116.75%

A $10,000 investment in IVE would have resulted in a final balance of $31,350. This is a profit of $21,350 over 11 years and amounts to a compound annual growth rate (CAGR) of 11.68%.

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%.

IVE’s CAGR is 5.06 percentage points lower than that of IWP and as a result, would have yielded $18,841 less on a $10,000 investment. Thus, IVE performed worse than IWP by 5.06% annually.

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