IVW vs. IVE: What’s The Difference?

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

IVW and IVE have the same expense ratio: 0.18%. IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided higher returns than IVE over the past ten years.

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

Summary

IVW IVE
Name iShares S&P 500 Growth ETF iShares S&P 500 Value ETF
Category Large Growth Large Value
Issuer iShares iShares
AUM 35.72B 22.4B
Avg. Return 16.74% 11.68%
Div. Yield 0.61% 1.88%
Expense Ratio 0.18% 0.18%

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 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%.

IVW’s dividend yield is 1.27% lower than that of IVE (0.61% vs. 1.88%). Also, IVW yielded on average 5.05% more per year over the past decade (16.74% vs. 11.68%). IVW and IVE have the same expense ratio: 0.18%.

Fund Composition

Industry Exposure

IVW vs. IVE - Industry Exposure

IVW IVE
Technology 37.8% 9.41%
Industrials 5.72% 12.19%
Energy 0.06% 5.43%
Communication Services 15.44% 6.4%
Utilities 0.47% 4.82%
Healthcare 11.88% 15.4%
Consumer Defensive 3.84% 9.23%
Real Estate 1.11% 4.38%
Financial Services 6.78% 22.06%
Consumer Cyclical 15.25% 7.68%
Basic Materials 1.65% 2.99%

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 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%.

IVW is 28.39% more exposed to the Technology sector than IVE (37.8% vs 9.41%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 9.04% higher and 7.57% higher respectively (15.44% vs. 6.4% and 15.25% vs. 7.68%). In total, Utilities, Real Estate, and Basic Materials also make up 8.96% less of the fund’s holdings compared to IVE (3.23% vs. 12.19%).

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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

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%.

Risk Analysis

IVW IVE
Mean Return 1.44 1.05
R-squared 93.82 92.08
Std. Deviation 13.77 14.3
Alpha 2.19 -2.9
Beta 0.98 1.01
Sharpe Ratio 1.21 0.83
Treynor Ratio 17.24 11.41

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

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

IVW’s Mean Return is 0.39 points higher than that of IVE and its R-squared is 1.74 points higher. With a Standard Deviation of 13.77, IVW is slightly less volatile than IVE. The Alpha and Beta of IVW are 5.09 points higher and 0.03 points lower than IVE’s Alpha and Beta.

Performance

Annual Returns

IVW vs. IVE - Annual Returns

Year IVW IVE
2020 33.21% 1.24%
2019 30.91% 31.71%
2018 -0.17% -9.09%
2017 27.2% 15.19%
2016 6.74% 17.17%
2015 5.33% -3.24%
2014 14.67% 12.14%
2013 32.48% 31.69%
2012 14.39% 17.45%
2011 4.49% -0.63%
2010 14.84% 14.9%

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 2019 was the strongest year for IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

IVW vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IVW $10,000 $51,915 16.74%
IVE $10,000 $31,350 11.68%

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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.

IVW’s CAGR is 5.05 percentage points higher than that of IVE and as a result, would have yielded $20,565 more on a $10,000 investment. Thus, IVW outperformed IVE by 5.05% annually.


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