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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.

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Summary

IVWIWP
NameiShares S&P 500 Growth ETFiShares Russell Mid-Cap Growth ETF
CategoryLarge GrowthMid-Cap Growth
IssueriSharesiShares
AUM35.72B15.7B
Avg. Return16.74%16.75%
Div. Yield0.61%0.26%
Expense Ratio0.18%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%).

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Fund Composition

Industry Exposure

IVW vs. IWP - Industry Exposure

IVWIWP
Technology37.8%33.88%
Industrials5.72%14.09%
Energy0.06%1.51%
Communication Services15.44%6.32%
Utilities0.47%0.16%
Healthcare11.88%16.79%
Consumer Defensive3.84%2.32%
Real Estate1.11%2.46%
Financial Services6.78%4.52%
Consumer Cyclical15.25%16.09%
Basic Materials1.65%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 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%.

IWP - Holdings

IWP HoldingsWeight
IDEXX Laboratories Inc1.3%
DocuSign Inc1.3%
Roku Inc Class A1.29%
Match Group Inc1.06%
Chipotle Mexican Grill Inc1.06%
Pinterest Inc1.05%
Veeva Systems Inc Class A1.04%
Palantir Technologies Inc Ordinary Shares – Class A1.04%
Lululemon Athletica Inc1.01%
DexCom Inc1.0%

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%.

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Risk Analysis

IVWIWP
Mean Return1.441.27
R-squared93.8287.01
Std. Deviation13.7716.05
Alpha2.19-1.03
Beta0.981.1
Sharpe Ratio1.210.91
Treynor Ratio17.2412.98

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.

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Performance

Annual Returns

IVW vs. IWP - Annual Returns

YearIVWIWP
202033.21%35.29%
201930.91%35.14%
2018-0.17%-4.95%
201727.2%24.98%
20166.74%7.15%
20155.33%-0.39%
201414.67%11.68%
201332.48%35.44%
201214.39%15.62%
20114.49%-1.82%
201014.84%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

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$51,91516.74%
IWP$10,000$50,19116.75%

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.


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