The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and BIV is a Vanguard Intermediate-Term Bond fund. So, what’s the difference between IWF and BIV? And which fund is better?
The expense ratio of IWF is 0.14 percentage points higher than BIV’s (0.19% vs. 0.05%). IWF also has a high exposure to the technology sector while BIV is mostly comprised of AAA bonds. Overall, IWF has provided higher returns than BIV over the past ten years.
In this article, we’ll compare IWF vs. BIV. We’ll look at performance and holdings, as well as at their risk metrics and portfolio growth. Moreover, I’ll also discuss IWF’s and BIV’s fund composition, annual returns, and industry exposure and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||Vanguard Intermediate-Term Bond Index Fund ETF Shares|
|Category||Large Growth||Intermediate-Term Bond|
The iShares Russell 1000 Growth ETF (IWF) is a Large Growth fund that is issued by iShares. It currently has 72.16B total assets under management and has yielded an average annual return of 17.72% over the past 10 years. The fund has a dividend yield of 0.52% with an expense ratio of 0.19%.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) is a Intermediate-Term Bond fund that is issued by Vanguard. It currently has 39.05B total assets under management and has yielded an average annual return of 5.31% over the past 10 years. The fund has a dividend yield of 2.06% with an expense ratio of 0.05%.
IWF’s dividend yield is 1.54% lower than that of BIV (0.52% vs. 2.06%). Also, IWF yielded on average 12.41% more per year over the past decade (17.72% vs. 5.31%). The expense ratio of IWF is 0.14 percentage points higher than BIV’s (0.19% vs. 0.05%).
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|Facebook Inc Class A||3.91%|
|Alphabet Inc Class A||3.2%|
|Alphabet Inc Class C||3.03%|
|Visa Inc Class A||1.91%|
|The Home Depot Inc||1.62%|
IWF’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.51%, 9.85%, 6.63%, 3.91%, and 3.2%.
Alphabet Inc Class C (3.03%), Tesla Inc (2.45%), and NVIDIA Corp (2.14%) have a slightly smaller but still significant weight. Visa Inc Class A and The Home Depot Inc are also represented in the IWF’s holdings at 1.91% and 1.62%.
|BIV Bond Sectors||Weight|
BIV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 54.51%, 25.24%, 16.97%, 3.1%, and 0.15%. The fund is less weighted towards Below B (0.03%), B (0.0%), and BB (0.0%) rated bonds.
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The iShares Russell 1000 Growth ETF (IWF) has a Mean Return of 1.48 with a Sharpe Ratio of 1.19 and a Alpha of 2.16. Its Standard Deviation is 14.42 while IWF’s Beta is 1.03. Furthermore, the fund has a Treynor Ratio of 17.1 and a R-squared of 92.93.
The Vanguard Intermediate-Term Bond Index Fund ETF Shares (BIV) has a Treynor Ratio of 2.72 with a Beta of 1.33 and a Standard Deviation of 4.09. Its Mean Return is 0.35 while BIV’s Sharpe Ratio is 0.89. Furthermore, the fund has a R-squared of 95.12 and a Alpha of -0.07.
IWF’s Mean Return is 1.13 points higher than that of BIV and its R-squared is 2.19 points lower. With a Standard Deviation of 14.42, IWF is slightly more volatile than BIV. The Alpha and Beta of IWF are 2.23 points higher and 0.30 points lower than BIV’s Alpha and Beta.
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IWF had its best year in 2020 with an annual return of 38.21%. IWF’s worst year over the past decade yielded -1.68% and occurred in 2018. In most years the iShares Russell 1000 Growth ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 12.84%, 15.03%, and 16.47% respectively.
The year 2011 was the strongest year for BIV, returning 10.62% on an annual basis. The poorest year for BIV in the last ten years was 2013, with a yield of -3.44%. Most years the Vanguard Intermediate-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 3.8%, 7.0%, and 7.02% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWF would have resulted in a final balance of $55,920. This is a profit of $45,920 over 11 years and amounts to a compound annual growth rate (CAGR) of 17.72%.
With a $10,000 investment in BIV, the end total would have been $17,492. This equates to a $7,492 profit over 11 years and a compound annual growth rate (CAGR) of 5.31%.
IWF’s CAGR is 12.41 percentage points higher than that of BIV and as a result, would have yielded $38,428 more on a $10,000 investment. Thus, IWF outperformed BIV by 12.41% annually.
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