IVW vs. IWP: What’s The Difference?

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

The expense ratio of IVW is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%). IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided lower returns than IWP over the past ten years.

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

Summary

IVW IWP
Name iShares S&P 500 Growth ETF iShares Russell Mid-Cap Growth ETF
Category Large Growth Mid-Cap Growth
Issuer iShares iShares
AUM 35.72B 15.7B
Avg. Return 16.74% 16.75%
Div. Yield 0.61% 0.26%
Expense Ratio 0.18% 0.24%

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 Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

IVW’s dividend yield is 0.35% higher than that of IWP (0.61% vs. 0.26%). Also, IVW yielded on average 0.01% less per year over the past decade (16.74% vs. 16.75%). The expense ratio of IVW is 0.06 percentage points lower than IWP’s (0.18% vs. 0.24%).

Fund Composition

Industry Exposure

IVW vs. IWP - Industry Exposure

IVW IWP
Technology 37.8% 33.88%
Industrials 5.72% 14.09%
Energy 0.06% 1.51%
Communication Services 15.44% 6.32%
Utilities 0.47% 0.16%
Healthcare 11.88% 16.79%
Consumer Defensive 3.84% 2.32%
Real Estate 1.11% 2.46%
Financial Services 6.78% 4.52%
Consumer Cyclical 15.25% 16.09%
Basic Materials 1.65% 1.86%

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 Russell Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.

IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.

IVW is 3.92% more exposed to the Technology sector than IWP (37.8% vs 33.88%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 9.12% higher and 0.84% lower respectively (15.44% vs. 6.32% and 15.25% vs. 16.09%). In total, Utilities, Real Estate, and Basic Materials also make up 1.25% less of the fund’s holdings compared to IWP (3.23% vs. 4.48%).

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%.

IWP - Holdings

IWP Holdings Weight
IDEXX Laboratories Inc 1.3%
DocuSign Inc 1.3%
Roku Inc Class A 1.29%
Match Group Inc 1.06%
Chipotle Mexican Grill Inc 1.06%
Pinterest Inc 1.05%
Veeva Systems Inc Class A 1.04%
Palantir Technologies Inc Ordinary Shares – Class A 1.04%
Lululemon Athletica Inc 1.01%
DexCom Inc 1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

Risk Analysis

IVW IWP
Mean Return 1.44 1.27
R-squared 93.82 87.01
Std. Deviation 13.77 16.05
Alpha 2.19 -1.03
Beta 0.98 1.1
Sharpe Ratio 1.21 0.91
Treynor Ratio 17.24 12.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Mean Return of 1.27 with a Treynor Ratio of 12.98 and a Sharpe Ratio of 0.91. Its Alpha is -1.03 while IWP’s R-squared is 87.01. Furthermore, the fund has a Beta of 1.1 and a Standard Deviation of 16.05.

IVW’s Mean Return is 0.17 points higher than that of IWP and its R-squared is 6.81 points higher. With a Standard Deviation of 13.77, IVW is slightly less volatile than IWP. The Alpha and Beta of IVW are 3.22 points higher and 0.12 points lower than IWP’s Alpha and Beta.

Performance

Annual Returns

IVW vs. IWP - Annual Returns

Year IVW IWP
2020 33.21% 35.29%
2019 30.91% 35.14%
2018 -0.17% -4.95%
2017 27.2% 24.98%
2016 6.74% 7.15%
2015 5.33% -0.39%
2014 14.67% 11.68%
2013 32.48% 35.44%
2012 14.39% 15.62%
2011 4.49% -1.82%
2010 14.84% 26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

IVW vs. IWP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IVW $10,000 $51,915 16.74%
IWP $10,000 $50,191 16.75%

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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.

IVW’s CAGR is 0.01 percentage points lower than that of IWP and as a result, would have yielded $1,724 more on a $10,000 investment. Thus, IVW performed worse than IWP by 0.01% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

2) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

3) If you are interested in crypto, check out Gemini. I've started allocating a small amount of assets to the growing crypto space and Gemini has just been a breeze to use. Once you register, make sure to also open an Active Trader account to buy crypto at the lowest fees on the market (just 0.03%!).

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply