IVW vs. IWR: What’s The Difference?

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 vs. IWR - 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

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

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

IVW vs. IWR - 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

IVW vs. IWR - 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.


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