IWB vs. DIA: What’s The Difference?

The iShares Russell 1000 ETF (IWB) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IWB is a iShares Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IWB and DIA? And which fund is better?

The expense ratio of IWB is 0.01 percentage points lower than DIA’s (0.15% vs. 0.16%). IWB also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWB has provided higher returns than DIA over the past ten years.

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

Summary

IWB DIA
Name iShares Russell 1000 ETF SPDR Dow Jones Industrial Average ETF Trust
Category Large Blend Large Value
Issuer iShares SPDR State Street Global Advisors
AUM 30.54B 30.46B
Avg. Return 14.64% 13.35%
Div. Yield 1.14% 1.61%
Expense Ratio 0.15% 0.16%

The iShares Russell 1000 ETF (IWB) is a Large Blend fund that is issued by iShares. It currently has 30.54B total assets under management and has yielded an average annual return of 14.64% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.15%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

IWB’s dividend yield is 0.47% lower than that of DIA (1.14% vs. 1.61%). Also, IWB yielded on average 1.28% more per year over the past decade (14.64% vs. 13.35%). The expense ratio of IWB is 0.01 percentage points lower than DIA’s (0.15% vs. 0.16%).

Fund Composition

Industry Exposure

IWB vs. DIA - Industry Exposure

IWB DIA
Technology 25.33% 17.32%
Industrials 8.88% 16.7%
Energy 2.44% 2.0%
Communication Services 10.83% 4.42%
Utilities 2.36% 0.0%
Healthcare 13.35% 17.92%
Consumer Defensive 5.97% 6.3%
Real Estate 3.34% 0.0%
Financial Services 13.64% 20.68%
Consumer Cyclical 11.85% 13.44%
Basic Materials 2.02% 1.21%

The iShares Russell 1000 ETF (IWB) has the most exposure to the Technology sector at 25.33%. This is followed by Financial Services and Healthcare at 13.64% and 13.35% respectively. Utilities (2.36%), Energy (2.44%), and Real Estate (3.34%) only make up 8.14% of the fund’s total assets.

IWB’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.88%, 10.83%, 11.85%, and 13.35%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

IWB is 8.01% more exposed to the Technology sector than DIA (25.33% vs 17.32%). IWB’s exposure to Financial Services and Healthcare stocks is 7.04% lower and 4.57% lower respectively (13.64% vs. 20.68% and 13.35% vs. 17.92%). In total, Utilities, Energy, and Real Estate also make up 6.14% more of the fund’s holdings compared to DIA (8.14% vs. 2.00%).

Holdings

IWB - Holdings

IWB Holdings Weight
Apple Inc 5.45%
Microsoft Corp 5.11%
Amazon.com Inc 3.43%
Facebook Inc Class A 2.03%
Alphabet Inc Class A 1.93%
Alphabet Inc Class C 1.82%
Tesla Inc 1.27%
Berkshire Hathaway Inc Class B 1.24%
NVIDIA Corp 1.11%
JPMorgan Chase & Co 1.09%

IWB’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.45%, 5.11%, 3.43%, 2.03%, and 1.93%.

Alphabet Inc Class C (1.82%), Tesla Inc (1.27%), and Berkshire Hathaway Inc Class B (1.24%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IWB’s holdings at 1.11% and 1.09%.

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

Risk Analysis

IWB DIA
Mean Return 1.27 1.13
R-squared 99.73 93.31
Std. Deviation 13.87 13.68
Alpha -0.38 -0.94
Beta 1.02 0.97
Sharpe Ratio 1.05 0.94
Treynor Ratio 14.31 13.07

The iShares Russell 1000 ETF (IWB) has a Treynor Ratio of 14.31 with a Standard Deviation of 13.87 and a Sharpe Ratio of 1.05. Its Mean Return is 1.27 while IWB’s R-squared is 99.73. Furthermore, the fund has a Beta of 1.02 and a Alpha of -0.38.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Alpha of -0.94 with a Mean Return of 1.13 and a Treynor Ratio of 13.07. Its Standard Deviation is 13.68 while DIA’s R-squared is 93.31. Furthermore, the fund has a Sharpe Ratio of 0.94 and a Beta of 0.97.

IWB’s Mean Return is 0.14 points higher than that of DIA and its R-squared is 6.42 points higher. With a Standard Deviation of 13.87, IWB is slightly more volatile than DIA. The Alpha and Beta of IWB are 0.56 points higher and 0.05 points higher than DIA’s Alpha and Beta.

Performance

Annual Returns

IWB vs. DIA - Annual Returns

Year IWB DIA
2020 20.8% 9.63%
2019 31.26% 25.09%
2018 -4.91% -3.6%
2017 21.53% 27.97%
2016 11.91% 16.28%
2015 0.82% 0.1%
2014 13.08% 9.88%
2013 32.93% 29.41%
2012 16.27% 10.04%
2011 1.36% 8.21%
2010 15.94% 13.87%

IWB had its best year in 2013 with an annual return of 32.93%. IWB’s worst year over the past decade yielded -4.91% and occurred in 2018. In most years the iShares Russell 1000 ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.08%, 15.94%, and 16.27% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

IWB vs. DIA - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWB $10,000 $42,462 14.64%
DIA $10,000 $37,965 13.35%

A $10,000 investment in IWB would have resulted in a final balance of $42,462. This is a profit of $32,462 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.64%.

With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IWB’s CAGR is 1.28 percentage points higher than that of DIA and as a result, would have yielded $4,497 more on a $10,000 investment. Thus, IWB outperformed DIA by 1.28% 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