The iShares Russell 1000 Value ETF (IWD) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and IVE is a iShares Large Value fund. So, what’s the difference between IWD and IVE? And which fund is better?
The expense ratio of IWD is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%). IWD also has a lower exposure to the financial services sector and a higher standard deviation. Overall, IWD has provided lower returns than IVE over the past ten years.
In this article, we’ll compare IWD vs. IVE. We’ll look at portfolio growth and performance, as well as at their fund composition and industry exposure. Moreover, I’ll also discuss IWD’s and IVE’s holdings, risk metrics, and annual returns and examine how these affect their overall returns.
Summary
| IWD | IVE | |
| Name | iShares Russell 1000 Value ETF | iShares S&P 500 Value ETF |
| Category | Large Value | Large Value |
| Issuer | iShares | iShares |
| AUM | 54.1B | 22.4B |
| Avg. Return | 11.40% | 11.68% |
| Div. Yield | 1.57% | 1.88% |
| Expense Ratio | 0.19% | 0.18% |
The iShares Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
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%.
IWD’s dividend yield is 0.31% lower than that of IVE (1.57% vs. 1.88%). Also, IWD yielded on average 0.28% less per year over the past decade (11.40% vs. 11.68%). The expense ratio of IWD is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%).
Fund Composition
Industry Exposure
| IWD | IVE | |
| Technology | 10.28% | 9.41% |
| Industrials | 11.77% | 12.19% |
| Energy | 4.76% | 5.43% |
| Communication Services | 8.67% | 6.4% |
| Utilities | 4.88% | 4.82% |
| Healthcare | 17.78% | 15.4% |
| Consumer Defensive | 7.76% | 9.23% |
| Real Estate | 4.94% | 4.38% |
| Financial Services | 20.43% | 22.06% |
| Consumer Cyclical | 5.62% | 7.68% |
| Basic Materials | 3.1% | 2.99% |
The iShares Russell 1000 Value ETF (IWD) has the most exposure to the Financial Services sector at 20.43%. This is followed by Healthcare and Industrials at 17.78% and 11.77% respectively. Energy (4.76%), Utilities (4.88%), and Real Estate (4.94%) only make up 14.58% of the fund’s total assets.
IWD’s mid-section with moderate exposure is comprised of Consumer Cyclical, Consumer Defensive, Communication Services, Technology, and Industrials stocks at 5.62%, 7.76%, 8.67%, 10.28%, and 11.77%.
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%.
IWD is 1.63% less exposed to the Financial Services sector than IVE (20.43% vs 22.06%). IWD’s exposure to Healthcare and Industrials stocks is 2.38% higher and 0.42% lower respectively (17.78% vs. 15.4% and 11.77% vs. 12.19%). In total, Energy, Utilities, and Real Estate also make up 0.05% less of the fund’s holdings compared to IVE (14.58% vs. 14.63%).
Holdings
| IWD Holdings | Weight |
| Berkshire Hathaway Inc Class B | 2.58% |
| JPMorgan Chase & Co | 2.25% |
| Johnson & Johnson | 2.24% |
| UnitedHealth Group Inc | 1.78% |
| Procter & Gamble Co | 1.71% |
| The Walt Disney Co | 1.5% |
| Bank of America Corp | 1.43% |
| Comcast Corp Class A | 1.33% |
| Exxon Mobil Corp | 1.2% |
| Pfizer Inc | 1.18% |
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
| 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
| IWD | IVE | |
| Mean Return | 1.03 | 1.05 |
| R-squared | 92.38 | 92.08 |
| Std. Deviation | 14.35 | 14.3 |
| Alpha | -3.23 | -2.9 |
| Beta | 1.02 | 1.01 |
| Sharpe Ratio | 0.81 | 0.83 |
| Treynor Ratio | 11.06 | 11.41 |
The iShares Russell 1000 Value ETF (IWD) has a Alpha of -3.23 with a Sharpe Ratio of 0.81 and a Mean Return of 1.03. Its Standard Deviation is 14.35 while IWD’s R-squared is 92.38. Furthermore, the fund has a Treynor Ratio of 11.06 and a Beta of 1.02.
The iShares S&P 500 Value ETF (IVE) has a R-squared of 92.08 with a Mean Return of 1.05 and a Treynor Ratio of 11.41. Its Alpha is -2.9 while IVE’s Sharpe Ratio is 0.83. Furthermore, the fund has a Beta of 1.01 and a Standard Deviation of 14.3.
IWD’s Mean Return is 0.02 points lower than that of IVE and its R-squared is 0.30 points higher. With a Standard Deviation of 14.35, IWD is slightly more volatile than IVE. The Alpha and Beta of IWD are 0.33 points lower and 0.01 points higher than IVE’s Alpha and Beta.
Performance
Annual Returns
| Year | IWD | IVE |
| 2020 | 2.67% | 1.24% |
| 2019 | 26.34% | 31.71% |
| 2018 | -8.4% | -9.09% |
| 2017 | 13.47% | 15.19% |
| 2016 | 17.09% | 17.17% |
| 2015 | -3.95% | -3.24% |
| 2014 | 13.21% | 12.14% |
| 2013 | 32.18% | 31.69% |
| 2012 | 17.28% | 17.45% |
| 2011 | 0.21% | -0.63% |
| 2010 | 15.3% | 14.9% |
IWD had its best year in 2013 with an annual return of 32.18%. IWD’s worst year over the past decade yielded -8.4% and occurred in 2018. In most years the iShares Russell 1000 Value ETF provided moderate returns such as in 2014, 2017, and 2010 where annual returns amounted to 13.21%, 13.47%, and 15.3% 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
| Fund | Initial Balance | Final Balance | CAGR |
| IWD | $10,000 | $30,746 | 11.40% |
| IVE | $10,000 | $31,350 | 11.68% |
A $10,000 investment in IWD would have resulted in a final balance of $30,746. This is a profit of $20,746 over 11 years and amounts to a compound annual growth rate (CAGR) of 11.40%.
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%.
IWD’s CAGR is 0.28 percentage points lower than that of IVE and as a result, would have yielded $604 less on a $10,000 investment. Thus, IWD performed worse than IVE by 0.28% annually.
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