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IVE vs. SCHG: What’s The Difference?

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

The expense ratio of IVE is 0.14 percentage points higher than SCHG’s (0.18% vs. 0.04%). IVE also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IVE has provided lower returns than SCHG over the past 10 years.

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

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Summary

IVESCHG
NameiShares S&P 500 Value ETFSchwab U.S. Large-Cap Growth ETF
CategoryLarge ValueLarge Growth
IssueriSharesSchwab ETFs
AUM22.4B15.16B
Avg. Return11.68%17.81%
Div. Yield1.88%0.43%
Expense Ratio0.18%0.04%

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 Schwab U.S. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.

IVE’s dividend yield is 1.45% higher than that of SCHG (1.88% vs. 0.43%). Also, IVE yielded on average 6.13% less per year over the past decade (11.68% vs. 17.81%). The expense ratio of IVE is 0.14 percentage points higher than SCHG’s (0.18% vs. 0.04%).

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Fund Composition

Industry Exposure

IVE vs. SCHG - Industry Exposure

IVESCHG
Technology9.41%39.21%
Industrials12.19%3.01%
Energy5.43%0.2%
Communication Services6.4%17.07%
Utilities4.82%0.0%
Healthcare15.4%12.05%
Consumer Defensive9.23%2.15%
Real Estate4.38%1.64%
Financial Services22.06%7.98%
Consumer Cyclical7.68%15.01%
Basic Materials2.99%1.68%

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 Schwab U.S. Large-Cap Growth ETF (SCHG) has the most exposure to the Technology sector at 39.21%. This is followed by Communication Services and Consumer Cyclical at 17.07% and 15.01% respectively. Energy (0.2%), Real Estate (1.64%), and Basic Materials (1.68%) only make up 3.52% of the fund’s total assets.

SCHG’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 2.15%, 3.01%, 7.98%, 12.05%, and 15.01%.

IVE is 14.08% more exposed to the Financial Services sector than SCHG (22.06% vs 7.98%). IVE’s exposure to Healthcare and Industrials stocks is 3.35% higher and 9.18% higher respectively (15.4% vs. 12.05% and 12.19% vs. 3.01%). In total, Real Estate, Utilities, and Energy also make up 12.79% more of the fund’s holdings compared to SCHG (14.63% vs. 1.84%).

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%.

SCHG - Holdings

SCHG HoldingsWeight
Apple Inc11.49%
Microsoft Corp10.91%
Amazon.com Inc7.89%
Facebook Inc A4.45%
Alphabet Inc A3.93%
Alphabet Inc Class C3.82%
Tesla Inc2.8%
NVIDIA Corp2.67%
Visa Inc Class A2.12%
UnitedHealth Group Inc2.02%

SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.

Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.

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Risk Analysis

IVESCHG
Mean Return1.051.46
R-squared92.0892.92
Std. Deviation14.314.78
Alpha-2.91.97
Beta1.011.05
Sharpe Ratio0.831.14
Treynor Ratio11.4116.3

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

The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Sharpe Ratio of 1.14 with a Standard Deviation of 14.78 and a R-squared of 92.92. Its Alpha is 1.97 while SCHG’s Mean Return is 1.46. Furthermore, the fund has a Beta of 1.05 and a Treynor Ratio of 16.3.

IVE’s Mean Return is 0.41 points lower than that of SCHG and its R-squared is 0.84 points lower. With a Standard Deviation of 14.3, IVE is slightly less volatile than SCHG. The Alpha and Beta of IVE are 4.87 points lower and 0.04 points lower than SCHG’s Alpha and Beta.

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Performance

Annual Returns

IVE vs. SCHG - Annual Returns

YearIVESCHG
20201.24%39.13%
201931.71%36.21%
2018-9.09%-1.35%
201715.19%28.04%
201617.17%6.76%
2015-3.24%3.26%
201412.14%15.74%
201331.69%33.96%
201217.45%17.02%
2011-0.63%-0.67%
201014.9%16.83%

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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.

Portfolio Growth

IVE vs. SCHG - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVE$10,000$27,28511.68%
SCHG$10,000$47,55617.81%

A $10,000 investment in IVE would have resulted in a final balance of $27,285. This is a profit of $17,285 over 10 years and amounts to a compound annual growth rate (CAGR) of 11.68%.

With a $10,000 investment in SCHG, the end total would have been $47,556. This equates to a $37,556 profit over 10 years and a compound annual growth rate (CAGR) of 17.81%.

IVE’s CAGR is 6.13 percentage points lower than that of SCHG and as a result, would have yielded $20,271 less on a $10,000 investment. Thus, IVE performed worse than SCHG by 6.13% annually.


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