The iShares S&P 500 Growth ETF (IVW) and the iShares Russell Mid-Cap ETF (IWR) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and IWR is a iShares Mid-Cap Blend fund. So, what’s the difference between IVW and IWR? And which fund is better?
The expense ratio of IVW is 0.01 percentage points lower than IWR’s (0.18% vs. 0.19%). IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided higher returns than IWR over the past ten years.
In this article, we’ll compare IVW vs. IWR. We’ll look at annual returns and industry exposure, as well as at their performance and risk metrics. Moreover, I’ll also discuss IVW’s and IWR’s portfolio growth, fund composition, and holdings and examine how these affect their overall returns.
Summary
| IVW | IWR | |
| Name | iShares S&P 500 Growth ETF | iShares Russell Mid-Cap ETF |
| Category | Large Growth | Mid-Cap Blend |
| Issuer | iShares | iShares |
| AUM | 35.72B | 29.84B |
| Avg. Return | 16.74% | 14.15% |
| Div. Yield | 0.61% | 0.99% |
| Expense Ratio | 0.18% | 0.19% |
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 ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% with an expense ratio of 0.19%.
IVW’s dividend yield is 0.38% lower than that of IWR (0.61% vs. 0.99%). Also, IVW yielded on average 2.58% more per year over the past decade (16.74% vs. 14.15%). The expense ratio of IVW is 0.01 percentage points lower than IWR’s (0.18% vs. 0.19%).
Fund Composition
Industry Exposure
| IVW | IWR | |
| Technology | 37.8% | 19.67% |
| Industrials | 5.72% | 14.54% |
| Energy | 0.06% | 3.48% |
| Communication Services | 15.44% | 4.64% |
| Utilities | 0.47% | 4.46% |
| Healthcare | 11.88% | 11.76% |
| Consumer Defensive | 3.84% | 3.82% |
| Real Estate | 1.11% | 8.31% |
| Financial Services | 6.78% | 11.64% |
| Consumer Cyclical | 15.25% | 13.59% |
| Basic Materials | 1.65% | 4.1% |
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 ETF (IWR) has the most exposure to the Technology sector at 19.67%. This is followed by Industrials and Consumer Cyclical at 14.54% and 13.59% respectively. Consumer Defensive (3.82%), Basic Materials (4.1%), and Utilities (4.46%) only make up 12.38% of the fund’s total assets.
IWR’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Financial Services, Healthcare, and Consumer Cyclical stocks at 4.64%, 8.31%, 11.64%, 11.76%, and 13.59%.
IVW is 18.13% more exposed to the Technology sector than IWR (37.8% vs 19.67%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 10.80% higher and 1.66% higher respectively (15.44% vs. 4.64% and 15.25% vs. 13.59%). In total, Utilities, Real Estate, and Basic Materials also make up 13.64% less of the fund’s holdings compared to IWR (3.23% vs. 16.87%).
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%.
| IWR Holdings | Weight |
| IDEXX Laboratories Inc | 0.51% |
| DocuSign Inc | 0.51% |
| Twitter Inc | 0.48% |
| Chipotle Mexican Grill Inc | 0.47% |
| Roku Inc Class A | 0.44% |
| Marvell Technology Inc | 0.44% |
| DexCom Inc | 0.44% |
| Trane Technologies PLC | 0.43% |
| MSCI Inc | 0.43% |
| Carrier Global Corp Ordinary Shares | 0.43% |
IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.
Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.
Risk Analysis
| IVW | IWR | |
| Mean Return | 1.44 | 1.17 |
| R-squared | 93.82 | 91.52 |
| Std. Deviation | 13.77 | 15.66 |
| Alpha | 2.19 | -2.8 |
| Beta | 0.98 | 1.11 |
| Sharpe Ratio | 1.21 | 0.86 |
| Treynor Ratio | 17.24 | 11.72 |
The iShares S&P 500 Growth ETF (IVW) has a Mean Return of 1.44 with a R-squared of 93.82 and a Standard Deviation of 13.77. Its Sharpe Ratio is 1.21 while IVW’s Alpha is 2.19. Furthermore, the fund has a Treynor Ratio of 17.24 and a Beta of 0.98.
The iShares Russell Mid-Cap ETF (IWR) has a Sharpe Ratio of 0.86 with a Beta of 1.11 and a Standard Deviation of 15.66. Its R-squared is 91.52 while IWR’s Treynor Ratio is 11.72. Furthermore, the fund has a Alpha of -2.8 and a Mean Return of 1.17.
IVW’s Mean Return is 0.27 points higher than that of IWR and its R-squared is 2.30 points higher. With a Standard Deviation of 13.77, IVW is slightly less volatile than IWR. The Alpha and Beta of IVW are 4.99 points higher and 0.13 points lower than IWR’s Alpha and Beta.
Performance
Annual Returns
| Year | IVW | IWR |
| 2020 | 33.21% | 16.91% |
| 2019 | 30.91% | 30.31% |
| 2018 | -0.17% | -9.13% |
| 2017 | 27.2% | 18.32% |
| 2016 | 6.74% | 13.58% |
| 2015 | 5.33% | -2.57% |
| 2014 | 14.67% | 13.03% |
| 2013 | 32.48% | 34.5% |
| 2012 | 14.39% | 17.13% |
| 2011 | 4.49% | -1.67% |
| 2010 | 14.84% | 25.25% |
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 IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IVW | $10,000 | $51,915 | 16.74% |
| IWR | $10,000 | $39,751 | 14.15% |
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 IWR, the end total would have been $39,751. This equates to a $29,751 profit over 11 years and a compound annual growth rate (CAGR) of 14.15%.
IVW’s CAGR is 2.58 percentage points higher than that of IWR and as a result, would have yielded $12,164 more on a $10,000 investment. Thus, IVW outperformed IWR by 2.58% annually.
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