IVW vs. EFV: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IVW and EFV? And which fund is better?

The expense ratio of IVW is 0.21 percentage points lower than EFV’s (0.18% vs. 0.39%). IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided higher returns than EFV over the past ten years.

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

Summary

IVW EFV
Name iShares S&P 500 Growth ETF iShares MSCI EAFE Value ETF
Category Large Growth Foreign Large Value
Issuer iShares iShares
AUM 35.72B 14.37B
Avg. Return 16.74% 3.99%
Div. Yield 0.61% 2.94%
Expense Ratio 0.18% 0.39%

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 iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.

IVW’s dividend yield is 2.33% lower than that of EFV (0.61% vs. 2.94%). Also, IVW yielded on average 12.74% more per year over the past decade (16.74% vs. 3.99%). The expense ratio of IVW is 0.21 percentage points lower than EFV’s (0.18% vs. 0.39%).

Fund Composition

Industry Exposure

IVW vs. EFV - Industry Exposure

IVW EFV
Technology 37.8% 2.98%
Industrials 5.72% 11.6%
Energy 0.06% 6.6%
Communication Services 15.44% 6.46%
Utilities 0.47% 6.14%
Healthcare 11.88% 9.19%
Consumer Defensive 3.84% 6.82%
Real Estate 1.11% 5.06%
Financial Services 6.78% 26.55%
Consumer Cyclical 15.25% 9.0%
Basic Materials 1.65% 9.59%

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 iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.

EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.

IVW is 34.82% more exposed to the Technology sector than EFV (37.8% vs 2.98%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 8.98% higher and 6.25% higher respectively (15.44% vs. 6.46% and 15.25% vs. 9.0%). In total, Utilities, Real Estate, and Basic Materials also make up 17.56% less of the fund’s holdings compared to EFV (3.23% vs. 20.79%).

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%.

EFV - Holdings

EFV Holdings Weight
Novartis AG 2.41%
Toyota Motor Corp 2.21%
Commonwealth Bank of Australia 1.59%
Siemens AG 1.45%
Sanofi SA 1.42%
HSBC Holdings PLC 1.4%
TotalEnergies SE 1.35%
Allianz SE 1.23%
GlaxoSmithKline PLC 1.18%
Rio Tinto PLC 1.1%

EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.

HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.

Risk Analysis

IVW EFV
Mean Return 1.44 0.42
R-squared 93.82 92.15
Std. Deviation 13.77 16.53
Alpha 2.19 -1.77
Beta 0.98 1.05
Sharpe Ratio 1.21 0.26
Treynor Ratio 17.24 2.92

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

The iShares MSCI EAFE Value ETF (EFV) has a Standard Deviation of 16.53 with a Beta of 1.05 and a R-squared of 92.15. Its Alpha is -1.77 while EFV’s Sharpe Ratio is 0.26. Furthermore, the fund has a Mean Return of 0.42 and a Treynor Ratio of 2.92.

IVW’s Mean Return is 1.02 points higher than that of EFV and its R-squared is 1.67 points higher. With a Standard Deviation of 13.77, IVW is slightly less volatile than EFV. The Alpha and Beta of IVW are 3.96 points higher and 0.07 points lower than EFV’s Alpha and Beta.

Performance

Annual Returns

IVW vs. EFV - Annual Returns

Year IVW EFV
2020 33.21% -2.78%
2019 30.91% 15.97%
2018 -0.17% -14.88%
2017 27.2% 21.22%
2016 6.74% 4.87%
2015 5.33% -5.89%
2014 14.67% -5.65%
2013 32.48% 22.61%
2012 14.39% 17.52%
2011 4.49% -12.24%
2010 14.84% 3.18%

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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.

Portfolio Growth

IVW vs. EFV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IVW $10,000 $51,915 16.74%
EFV $10,000 $14,134 3.99%

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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.

IVW’s CAGR is 12.74 percentage points higher than that of EFV and as a result, would have yielded $37,781 more on a $10,000 investment. Thus, IVW outperformed EFV by 12.74% annually.


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