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.

Summary

IVW DIA
Name iShares S&P 500 Growth ETF SPDR Dow Jones Industrial Average ETF Trust
Category Large Growth Large Value
Issuer iShares SPDR State Street Global Advisors
AUM 35.72B 30.46B
Avg. Return 16.74% 13.35%
Div. Yield 0.61% 1.61%
Expense Ratio 0.18% 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%).

Fund Composition

Industry Exposure

IVW vs. DIA - Industry Exposure

IVW DIA
Technology 37.8% 17.32%
Industrials 5.72% 16.7%
Energy 0.06% 2.0%
Communication Services 15.44% 4.42%
Utilities 0.47% 0.0%
Healthcare 11.88% 17.92%
Consumer Defensive 3.84% 6.3%
Real Estate 1.11% 0.0%
Financial Services 6.78% 20.68%
Consumer Cyclical 15.25% 13.44%
Basic Materials 1.65% 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 Holdings Weight
Apple Inc 11.46%
Microsoft Corp 10.75%
Amazon.com Inc 7.14%
Facebook Inc Class A 4.28%
Alphabet Inc Class A 4.06%
Alphabet Inc Class C 3.86%
Tesla Inc 2.65%
NVIDIA Corp 2.43%
PayPal Holdings Inc 1.62%
Adobe Inc 1.49%

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 Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

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%.

Risk Analysis

IVW DIA
Mean Return 1.44 1.13
R-squared 93.82 93.31
Std. Deviation 13.77 13.68
Alpha 2.19 -0.94
Beta 0.98 0.97
Sharpe Ratio 1.21 0.94
Treynor Ratio 17.24 13.07

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.

Performance

Annual Returns

IVW vs. DIA - Annual Returns

Year IVW DIA
2020 33.21% 9.63%
2019 30.91% 25.09%
2018 -0.17% -3.6%
2017 27.2% 27.97%
2016 6.74% 16.28%
2015 5.33% 0.1%
2014 14.67% 9.88%
2013 32.48% 29.41%
2012 14.39% 10.04%
2011 4.49% 8.21%
2010 14.84% 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

Fund Initial Balance Final Balance CAGR
IVW $10,000 $51,915 16.74%
DIA $10,000 $37,965 13.35%

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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