IWB vs. IVE: What’s The Difference?

The iShares Russell 1000 ETF (IWB) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IWB is a iShares Large Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between IWB and IVE? And which fund is better?

The expense ratio of IWB is 0.03 percentage points lower than IVE’s (0.15% vs. 0.18%). IWB also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWB has provided higher returns than IVE over the past ten years.

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

Summary

IWB IVE
Name iShares Russell 1000 ETF iShares S&P 500 Value ETF
Category Large Blend Large Value
Issuer iShares iShares
AUM 30.54B 22.4B
Avg. Return 14.64% 11.68%
Div. Yield 1.14% 1.88%
Expense Ratio 0.15% 0.18%

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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

IWB’s dividend yield is 0.74% lower than that of IVE (1.14% vs. 1.88%). Also, IWB yielded on average 2.95% more per year over the past decade (14.64% vs. 11.68%). The expense ratio of IWB is 0.03 percentage points lower than IVE’s (0.15% vs. 0.18%).

Fund Composition

Industry Exposure

IWB vs. IVE - Industry Exposure

IWB IVE
Technology 25.33% 9.41%
Industrials 8.88% 12.19%
Energy 2.44% 5.43%
Communication Services 10.83% 6.4%
Utilities 2.36% 4.82%
Healthcare 13.35% 15.4%
Consumer Defensive 5.97% 9.23%
Real Estate 3.34% 4.38%
Financial Services 13.64% 22.06%
Consumer Cyclical 11.85% 7.68%
Basic Materials 2.02% 2.99%

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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

IWB is 15.92% more exposed to the Technology sector than IVE (25.33% vs 9.41%). IWB’s exposure to Financial Services and Healthcare stocks is 8.42% lower and 2.05% lower respectively (13.64% vs. 22.06% and 13.35% vs. 15.4%). In total, Utilities, Energy, and Real Estate also make up 6.49% less of the fund’s holdings compared to IVE (8.14% vs. 14.63%).

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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

Risk Analysis

IWB IVE
Mean Return 1.27 1.05
R-squared 99.73 92.08
Std. Deviation 13.87 14.3
Alpha -0.38 -2.9
Beta 1.02 1.01
Sharpe Ratio 1.05 0.83
Treynor Ratio 14.31 11.41

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

The iShares S&P 500 Value ETF (IVE) has a Treynor Ratio of 11.41 with a Sharpe Ratio of 0.83 and a Standard Deviation of 14.3. Its R-squared is 92.08 while IVE’s Alpha is -2.9. Furthermore, the fund has a Mean Return of 1.05 and a Beta of 1.01.

IWB’s Mean Return is 0.22 points higher than that of IVE and its R-squared is 7.65 points higher. With a Standard Deviation of 13.87, IWB is slightly less volatile than IVE. The Alpha and Beta of IWB are 2.52 points higher and 0.01 points higher than IVE’s Alpha and Beta.

Performance

Annual Returns

IWB vs. IVE - Annual Returns

Year IWB IVE
2020 20.8% 1.24%
2019 31.26% 31.71%
2018 -4.91% -9.09%
2017 21.53% 15.19%
2016 11.91% 17.17%
2015 0.82% -3.24%
2014 13.08% 12.14%
2013 32.93% 31.69%
2012 16.27% 17.45%
2011 1.36% -0.63%
2010 15.94% 14.9%

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 2019 was the strongest year for IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

IWB vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWB $10,000 $42,462 14.64%
IVE $10,000 $31,350 11.68%

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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.

IWB’s CAGR is 2.95 percentage points higher than that of IVE and as a result, would have yielded $11,112 more on a $10,000 investment. Thus, IWB outperformed IVE by 2.95% annually.


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