The iShares S&P 500 Growth ETF (IVW) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between IVW and BIV? And which fund is better?
The expense ratio of IVW is 0.13 percentage points higher than BIV’s (0.18% vs. 0.05%). IVW also has a high exposure to the technology sector while BIV is mostly comprised of AAA bonds. Overall, IVW has provided higher returns than BIV over the past ten years.
In this article, we’ll compare IVW vs. BIV. We’ll look at performance and portfolio growth, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss IVW’s and BIV’s industry exposure, holdings, and annual returns and examine how these affect their overall returns.
|Name||iShares S&P 500 Growth ETF||Vanguard Intermediate-Term Bond Index Fund ETF Shares|
|Category||Large Growth||Intermediate-Term Bond|
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%.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.
IVW’s dividend yield is 1.45% lower than that of BIV (0.61% vs. 2.06%). Also, IVW yielded on average 11.42% more per year over the past decade (16.74% vs. 5.31%). The expense ratio of IVW is 0.13 percentage points higher than BIV’s (0.18% vs. 0.05%).
|Facebook Inc Class A||4.28%|
|Alphabet Inc Class A||4.06%|
|Alphabet Inc Class C||3.86%|
|PayPal Holdings Inc||1.62%|
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%.
|BIV Bond Sectors||Weight|
BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.
The iShares S&P 500 Growth ETF (IVW) has a Standard Deviation of 13.77 with a Sharpe Ratio of 1.21 and a Treynor Ratio of 17.24. Its Mean Return is 1.44 while IVW’s Beta is 0.98. Furthermore, the fund has a R-squared of 93.82 and a Alpha of 2.19.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a R-squared of 95.12 with a Standard Deviation of 4.09 and a Beta of 1.33. Its Mean Return is 0.35 while BIV’s Sharpe Ratio is 0.89. Furthermore, the fund has a Alpha of -0.07 and a Treynor Ratio of 2.72.
IVW’s Mean Return is 1.09 points higher than that of BIV and its R-squared is 1.30 points lower. With a Standard Deviation of 13.77, IVW is slightly more volatile than BIV. The Alpha and Beta of IVW are 2.26 points higher and 0.35 points lower than BIV’s Alpha and Beta.
IVW had its best year in 2020 with an annual return of 33.21%. IVW’s worst year over the past decade yielded -0.17% and occurred in 2018. In most years the iShares S&P 500 Growth ETF provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 14.39%, 14.67%, and 14.84% respectively.
The year 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IVW would have resulted in a final balance of $51,915. This is a profit of $41,915 over 11 years and amounts to a compound annual growth rate (CAGR) of 16.74%.
With a $10,000 investment in BIV, the end total would have been $17,492. This equates to a $7,492 profit over 11 years and a compound annual growth rate (CAGR) of 5.31%.
IVW’s CAGR is 11.42 percentage points higher than that of BIV and as a result, would have yielded $34,423 more on a $10,000 investment. Thus, IVW outperformed BIV by 11.42% annually.
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