Skip to content

IVW vs. VOE: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between IVW and VOE? And which fund is better?

The expense ratio of IVW is 0.11 percentage points higher than VOE’s (0.18% vs. 0.07%). IVW also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVW has provided higher returns than VOE over the past ten years.

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

TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

IVWVOE
NameiShares S&P 500 Growth ETFVanguard Mid-Cap Value Index Fund ETF Shares
CategoryLarge GrowthMid-Cap Value
IssueriSharesVanguard
AUM35.72B26.78B
Avg. Return16.74%12.52%
Div. Yield0.61%1.87%
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 Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.

IVW’s dividend yield is 1.26% lower than that of VOE (0.61% vs. 1.87%). Also, IVW yielded on average 4.21% more per year over the past decade (16.74% vs. 12.52%). The expense ratio of IVW is 0.11 percentage points higher than VOE’s (0.18% vs. 0.07%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Industry Exposure

IVW vs. VOE - Industry Exposure

IVWVOE
Technology37.8%9.85%
Industrials5.72%9.4%
Energy0.06%5.69%
Communication Services15.44%5.27%
Utilities0.47%10.93%
Healthcare11.88%7.04%
Consumer Defensive3.84%4.85%
Real Estate1.11%11.48%
Financial Services6.78%18.26%
Consumer Cyclical15.25%11.8%
Basic Materials1.65%5.44%

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 Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.

VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.

IVW is 27.95% more exposed to the Technology sector than VOE (37.8% vs 9.85%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 10.17% higher and 3.45% higher respectively (15.44% vs. 5.27% and 15.25% vs. 11.8%). In total, Utilities, Real Estate, and Basic Materials also make up 24.62% less of the fund’s holdings compared to VOE (3.23% vs. 27.85%).

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%.

VOE - Holdings

VOE HoldingsWeight
Carrier Global Corp Ordinary Shares1.28%
International Flavors & Fragrances Inc1.13%
Motorola Solutions Inc1.12%
Discover Financial Services1.09%
Welltower Inc1.05%
Corteva Inc0.99%
Valero Energy Corp0.97%
Corning Inc0.95%
Willis Towers Watson PLC0.9%
D.R. Horton Inc0.89%

VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.

Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

IVWVOE
Mean Return1.441.05
R-squared93.8288.76
Std. Deviation13.7715.98
Alpha2.19-3.77
Beta0.981.11
Sharpe Ratio1.210.75
Treynor Ratio17.2410.19

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

The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Beta of 1.11 with a Mean Return of 1.05 and a Sharpe Ratio of 0.75. Its Standard Deviation is 15.98 while VOE’s R-squared is 88.76. Furthermore, the fund has a Alpha of -3.77 and a Treynor Ratio of 10.19.

IVW’s Mean Return is 0.39 points higher than that of VOE and its R-squared is 5.06 points higher. With a Standard Deviation of 13.77, IVW is slightly less volatile than VOE. The Alpha and Beta of IVW are 5.96 points higher and 0.13 points lower than VOE’s Alpha and Beta.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

IVW vs. VOE - Annual Returns

YearIVWVOE
202033.21%2.5%
201930.91%27.98%
2018-0.17%-12.41%
201727.2%17.05%
20166.74%15.26%
20155.33%-1.8%
201414.67%13.98%
201332.48%37.65%
201214.39%16.04%
20114.49%-0.32%
201014.84%21.83%

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 VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.

Portfolio Growth

IVW vs. VOE - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$51,91516.74%
VOE$10,000$33,65512.52%

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 VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.

IVW’s CAGR is 4.21 percentage points higher than that of VOE and as a result, would have yielded $18,260 more on a $10,000 investment. Thus, IVW outperformed VOE by 4.21% 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)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) 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!

3) 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!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.