The iShares Russell 1000 ETF (IWB) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IWB is a iShares Large Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IWB and EFV? And which fund is better?
The expense ratio of IWB is 0.24 percentage points lower than EFV’s (0.15% vs. 0.39%). IWB also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWB has provided higher returns than EFV over the past ten years.
In this article, we’ll compare IWB vs. EFV. We’ll look at fund composition and industry exposure, as well as at their holdings and risk metrics. Moreover, I’ll also discuss IWB’s and EFV’s annual returns, portfolio growth, and performance and examine how these affect their overall returns.
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Summary
| IWB | EFV | |
| Name | iShares Russell 1000 ETF | iShares MSCI EAFE Value ETF |
| Category | Large Blend | Foreign Large Value |
| Issuer | iShares | iShares |
| AUM | 30.54B | 14.37B |
| Avg. Return | 14.64% | 3.99% |
| Div. Yield | 1.14% | 2.94% |
| Expense Ratio | 0.15% | 0.39% |
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 iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
IWB’s dividend yield is 1.80% lower than that of EFV (1.14% vs. 2.94%). Also, IWB yielded on average 10.64% more per year over the past decade (14.64% vs. 3.99%). The expense ratio of IWB is 0.24 percentage points lower than EFV’s (0.15% vs. 0.39%).
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Fund Composition
Industry Exposure
| IWB | EFV | |
| Technology | 25.33% | 2.98% |
| Industrials | 8.88% | 11.6% |
| Energy | 2.44% | 6.6% |
| Communication Services | 10.83% | 6.46% |
| Utilities | 2.36% | 6.14% |
| Healthcare | 13.35% | 9.19% |
| Consumer Defensive | 5.97% | 6.82% |
| Real Estate | 3.34% | 5.06% |
| Financial Services | 13.64% | 26.55% |
| Consumer Cyclical | 11.85% | 9.0% |
| Basic Materials | 2.02% | 9.59% |
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 iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
IWB is 22.35% more exposed to the Technology sector than EFV (25.33% vs 2.98%). IWB’s exposure to Financial Services and Healthcare stocks is 12.91% lower and 4.16% higher respectively (13.64% vs. 26.55% and 13.35% vs. 9.19%). In total, Utilities, Energy, and Real Estate also make up 9.66% less of the fund’s holdings compared to EFV (8.14% vs. 17.80%).
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%.
| EFV Holdings | Weight |
| Novartis AG | 2.41% |
| Toyota Motor Corp | 2.21% |
| Commonwealth Bank of Australia | 1.59% |
| Siemens AG | 1.45% |
| Sanofi SA | 1.42% |
| HSBC Holdings PLC | 1.4% |
| TotalEnergies SE | 1.35% |
| Allianz SE | 1.23% |
| GlaxoSmithKline PLC | 1.18% |
| Rio Tinto PLC | 1.1% |
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
Risk Analysis
| IWB | EFV | |
| Mean Return | 1.27 | 0.42 |
| R-squared | 99.73 | 92.15 |
| Std. Deviation | 13.87 | 16.53 |
| Alpha | -0.38 | -1.77 |
| Beta | 1.02 | 1.05 |
| Sharpe Ratio | 1.05 | 0.26 |
| Treynor Ratio | 14.31 | 2.92 |
The iShares Russell 1000 ETF (IWB) has a Mean Return of 1.27 with a Treynor Ratio of 14.31 and a Alpha of -0.38. Its R-squared is 99.73 while IWB’s Sharpe Ratio is 1.05. Furthermore, the fund has a Beta of 1.02 and a Standard Deviation of 13.87.
The iShares MSCI EAFE Value ETF (EFV) has a Sharpe Ratio of 0.26 with a R-squared of 92.15 and a Standard Deviation of 16.53. Its Treynor Ratio is 2.92 while EFV’s Mean Return is 0.42. Furthermore, the fund has a Alpha of -1.77 and a Beta of 1.05.
IWB’s Mean Return is 0.85 points higher than that of EFV and its R-squared is 7.58 points higher. With a Standard Deviation of 13.87, IWB is slightly less volatile than EFV. The Alpha and Beta of IWB are 1.39 points higher and 0.03 points lower than EFV’s Alpha and Beta.
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Performance
Annual Returns
| Year | IWB | EFV |
| 2020 | 20.8% | -2.78% |
| 2019 | 31.26% | 15.97% |
| 2018 | -4.91% | -14.88% |
| 2017 | 21.53% | 21.22% |
| 2016 | 11.91% | 4.87% |
| 2015 | 0.82% | -5.89% |
| 2014 | 13.08% | -5.65% |
| 2013 | 32.93% | 22.61% |
| 2012 | 16.27% | 17.52% |
| 2011 | 1.36% | -12.24% |
| 2010 | 15.94% | 3.18% |
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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWB | $10,000 | $42,462 | 14.64% |
| EFV | $10,000 | $14,134 | 3.99% |
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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.
IWB’s CAGR is 10.64 percentage points higher than that of EFV and as a result, would have yielded $28,328 more on a $10,000 investment. Thus, IWB outperformed EFV by 10.64% annually.
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