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IVW vs. MUB: What’s The Difference?

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

The expense ratio of IVW is 0.11 percentage points higher than MUB’s (0.18% vs. 0.07%). IVW also has a high exposure to the technology sector while MUB is mostly comprised of AA bonds. Overall, IVW has provided higher returns than MUB over the past ten years.

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

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Summary

IVWMUB
NameiShares S&P 500 Growth ETFiShares National Muni Bond ETF
CategoryLarge GrowthMuni National Interm
IssueriSharesiShares
AUM35.72B22.71B
Avg. Return16.74%4.04%
Div. Yield0.61%1.96%
Expense Ratio0.18%0.07%

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 National Muni Bond ETF (MUB) is a Muni National Interm fund that is issued by iShares. It currently has 22.71B total assets under management and has yielded an average annual return of 4.04% over the past 10 years. The fund has a dividend yield of 1.96% with an expense ratio of 0.07%.

IVW’s dividend yield is 1.35% lower than that of MUB (0.61% vs. 1.96%). Also, IVW yielded on average 12.70% more per year over the past decade (16.74% vs. 4.04%). The expense ratio of IVW is 0.11 percentage points higher than MUB’s (0.18% vs. 0.07%).

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Fund Composition

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%.

MUB - Holdings

MUB Bond SectorsWeight
AA60.38%
AAA18.39%
A15.04%
BBB6.0%
Others0.17%
BB0.02%
Below B0.0%
B0.0%
US Government0.0%

MUB’s Top Bond Sectors are ratings of AA, AAA, A, BBB, and Others at 60.38%, 18.39%, 15.04%, 6.0%, and 0.17%. The fund is less weighted towards BB (0.02%), Below B (0.0%), and B (0.0%) rated bonds.

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Risk Analysis

IVWMUB
Mean Return1.440.32
R-squared93.8299
Std. Deviation13.773.68
Alpha2.19-0.46
Beta0.981.01
Sharpe Ratio1.210.88
Treynor Ratio17.243.2

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

The iShares National Muni Bond ETF (MUB) has a Mean Return of 0.32 with a Standard Deviation of 3.68 and a Beta of 1.01. Its R-squared is 99 while MUB’s Sharpe Ratio is 0.88. Furthermore, the fund has a Treynor Ratio of 3.2 and a Alpha of -0.46.

IVW’s Mean Return is 1.12 points higher than that of MUB and its R-squared is 5.18 points lower. With a Standard Deviation of 13.77, IVW is slightly more volatile than MUB. The Alpha and Beta of IVW are 2.65 points higher and 0.03 points lower than MUB’s Alpha and Beta.

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Performance

Annual Returns

IVW vs. MUB - Annual Returns

YearIVWMUB
202033.21%4.87%
201930.91%7.28%
2018-0.17%0.86%
201727.2%4.61%
20166.74%0.06%
20155.33%2.99%
201414.67%8.61%
201332.48%-3.26%
201214.39%6.14%
20114.49%10.85%
201014.84%1.4%

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 2011 was the strongest year for MUB, returning 10.85% on an annual basis. The poorest year for MUB in the last ten years was 2013, with a yield of -3.26%. Most years the iShares National Muni Bond ETF has given investors modest returns, such as in 2015, 2017, and 2020, when gains were 2.99%, 4.61%, and 4.87% respectively.

Portfolio Growth

IVW vs. MUB - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$51,91516.74%
MUB$10,000$15,3334.04%

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 MUB, the end total would have been $15,333. This equates to a $5,333 profit over 11 years and a compound annual growth rate (CAGR) of 4.04%.

IVW’s CAGR is 12.70 percentage points higher than that of MUB and as a result, would have yielded $36,582 more on a $10,000 investment. Thus, IVW outperformed MUB by 12.70% annually.


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