IVW vs. SCHF: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between IVW and SCHF? And which fund is better?

The expense ratio of IVW is 0.12 percentage points higher than SCHF’s (0.18% vs. 0.06%). IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided higher returns than SCHF over the past ten years.

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

Summary

IVW SCHF
Name iShares S&P 500 Growth ETF Schwab International Equity ETF
Category Large Growth Foreign Large Blend
Issuer iShares Schwab ETFs
AUM 35.72B 26.99B
Avg. Return 16.74% 6.43%
Div. Yield 0.61% 2.16%
Expense Ratio 0.18% 0.06%

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 Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

IVW’s dividend yield is 1.55% lower than that of SCHF (0.61% vs. 2.16%). Also, IVW yielded on average 10.31% more per year over the past decade (16.74% vs. 6.43%). The expense ratio of IVW is 0.12 percentage points higher than SCHF’s (0.18% vs. 0.06%).

Fund Composition

Industry Exposure

IVW vs. SCHF - Industry Exposure

IVW SCHF
Technology 37.8% 11.55%
Industrials 5.72% 14.86%
Energy 0.06% 4.23%
Communication Services 15.44% 5.65%
Utilities 0.47% 3.09%
Healthcare 11.88% 11.05%
Consumer Defensive 3.84% 9.41%
Real Estate 1.11% 3.17%
Financial Services 6.78% 17.85%
Consumer Cyclical 15.25% 10.87%
Basic Materials 1.65% 8.26%

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 Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

IVW is 26.25% more exposed to the Technology sector than SCHF (37.8% vs 11.55%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 9.79% higher and 4.38% higher respectively (15.44% vs. 5.65% and 15.25% vs. 10.87%). In total, Utilities, Real Estate, and Basic Materials also make up 11.29% less of the fund’s holdings compared to SCHF (3.23% vs. 14.52%).

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%.

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

Risk Analysis

IVW SCHF
Mean Return 1.44 0.58
R-squared 93.82 98.16
Std. Deviation 13.77 15.08
Alpha 2.19 0.53
Beta 0.98 0.99
Sharpe Ratio 1.21 0.42
Treynor Ratio 17.24 5.39

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

The Schwab International Equity ETF (SCHF) has a Standard Deviation of 15.08 with a R-squared of 98.16 and a Mean Return of 0.58. Its Alpha is 0.53 while SCHF’s Treynor Ratio is 5.39. Furthermore, the fund has a Beta of 0.99 and a Sharpe Ratio of 0.42.

IVW’s Mean Return is 0.86 points higher than that of SCHF and its R-squared is 4.34 points lower. With a Standard Deviation of 13.77, IVW is slightly less volatile than SCHF. The Alpha and Beta of IVW are 1.66 points higher and 0.01 points lower than SCHF’s Alpha and Beta.

Performance

Annual Returns

IVW vs. SCHF - Annual Returns

Year IVW SCHF
2020 33.21% 9.86%
2019 30.91% 22.15%
2018 -0.17% -14.39%
2017 27.2% 25.83%
2016 6.74% 2.88%
2015 5.33% -2.44%
2014 14.67% -4.44%
2013 32.48% 20.03%
2012 14.39% 17.12%
2011 4.49% -12.32%
2010 14.84% 8.6%

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 2017 was the strongest year for SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

IVW vs. SCHF - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IVW $10,000 $45,206 16.74%
SCHF $10,000 $17,089 6.43%

A $10,000 investment in IVW would have resulted in a final balance of $45,206. This is a profit of $35,206 over 10 years and amounts to a compound annual growth rate (CAGR) of 16.74%.

With a $10,000 investment in SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

IVW’s CAGR is 10.31 percentage points higher than that of SCHF and as a result, would have yielded $28,117 more on a $10,000 investment. Thus, IVW outperformed SCHF by 10.31% annually.


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