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IVW vs. DIA: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IVW and DIA? And which fund is better?

The expense ratio of IVW is 0.02 percentage points higher than DIA’s (0.18% vs. 0.16%). IVW also has a higher exposure to the technology sector and a higher standard deviation. Overall, IVW has provided higher returns than DIA over the past ten years.

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

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Summary

IVWDIA
NameiShares S&P 500 Growth ETFSPDR Dow Jones Industrial Average ETF Trust
CategoryLarge GrowthLarge Value
IssueriSharesSPDR State Street Global Advisors
AUM35.72B30.46B
Avg. Return16.74%13.35%
Div. Yield0.61%1.61%
Expense Ratio0.18%0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

IVW’s dividend yield is 1.00% lower than that of DIA (0.61% vs. 1.61%). Also, IVW yielded on average 3.38% more per year over the past decade (16.74% vs. 13.35%). The expense ratio of IVW is 0.02 percentage points higher than DIA’s (0.18% vs. 0.16%).

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Fund Composition

Industry Exposure

IVW vs. DIA - Industry Exposure

IVWDIA
Technology37.8%17.32%
Industrials5.72%16.7%
Energy0.06%2.0%
Communication Services15.44%4.42%
Utilities0.47%0.0%
Healthcare11.88%17.92%
Consumer Defensive3.84%6.3%
Real Estate1.11%0.0%
Financial Services6.78%20.68%
Consumer Cyclical15.25%13.44%
Basic Materials1.65%1.21%

The iShares S&P 500 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.

IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

IVW is 20.48% more exposed to the Technology sector than DIA (37.8% vs 17.32%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 11.02% higher and 1.81% higher respectively (15.44% vs. 4.42% and 15.25% vs. 13.44%). In total, Utilities, Real Estate, and Basic Materials also make up 2.02% more of the fund’s holdings compared to DIA (3.23% vs. 1.21%).

Holdings

IVW - Holdings

IVW HoldingsWeight
Apple Inc11.46%
Microsoft Corp10.75%
Amazon.com Inc7.14%
Facebook Inc Class A4.28%
Alphabet Inc Class A4.06%
Alphabet Inc Class C3.86%
Tesla Inc2.65%
NVIDIA Corp2.43%
PayPal Holdings Inc1.62%
Adobe Inc1.49%

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%.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

IVWDIA
Mean Return1.441.13
R-squared93.8293.31
Std. Deviation13.7713.68
Alpha2.19-0.94
Beta0.980.97
Sharpe Ratio1.210.94
Treynor Ratio17.2413.07

The iShares S&P 500 Growth ETF (IVW) has a Beta of 0.98 with a Standard Deviation of 13.77 and a Sharpe Ratio of 1.21. Its Alpha is 2.19 while IVW’s Treynor Ratio is 17.24. Furthermore, the fund has a R-squared of 93.82 and a Mean Return of 1.44.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Mean Return of 1.13 with a Sharpe Ratio of 0.94 and a Treynor Ratio of 13.07. Its Standard Deviation is 13.68 while DIA’s Beta is 0.97. Furthermore, the fund has a R-squared of 93.31 and a Alpha of -0.94.

IVW’s Mean Return is 0.31 points higher than that of DIA and its R-squared is 0.51 points higher. With a Standard Deviation of 13.77, IVW is slightly more volatile than DIA. The Alpha and Beta of IVW are 3.13 points higher and 0.01 points higher than DIA’s Alpha and Beta.

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Performance

Annual Returns

IVW vs. DIA - Annual Returns

YearIVWDIA
202033.21%9.63%
201930.91%25.09%
2018-0.17%-3.6%
201727.2%27.97%
20166.74%16.28%
20155.33%0.1%
201414.67%9.88%
201332.48%29.41%
201214.39%10.04%
20114.49%8.21%
201014.84%13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

IVW vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$51,91516.74%
DIA$10,000$37,96513.35%

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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IVW’s CAGR is 3.38 percentage points higher than that of DIA and as a result, would have yielded $13,950 more on a $10,000 investment. Thus, IVW outperformed DIA by 3.38% annually.


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