The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and BNDX is a Vanguard N/A fund. So, what’s the difference between IWF and BNDX? And which fund is better?
The expense ratio of IWF is 0.11 percentage points higher than BNDX’s (0.19% vs. 0.08%). IWF also has a high exposure to the technology sector while BNDX is mostly comprised of A bonds. Overall, IWF has provided higher returns than BNDX over the past ten years.
In this article, we’ll compare IWF vs. BNDX. We’ll look at portfolio growth and performance, as well as at their industry exposure and annual returns. Moreover, I’ll also discuss IWF’s and BNDX’s fund composition, risk metrics, and holdings and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||Vanguard Total International Bond Index Fund ETF Shares|
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 Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.
IWF’s dividend yield is 0.42% lower than that of BNDX (0.52% vs. 0.94%). Also, IWF yielded on average 13.10% more per year over the past decade (17.72% vs. 4.63%). The expense ratio of IWF is 0.11 percentage points higher than BNDX’s (0.19% vs. 0.08%).
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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%.
|BNDX Bond Sectors||Weight|
BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), 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 Treynor Ratio of 17.1 and a Standard Deviation of 14.42. Its R-squared is 92.93 while IWF’s Sharpe Ratio is 1.19. Furthermore, the fund has a Alpha of 2.16 and a Beta of 1.03.
The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a Treynor Ratio of 0 and a Mean Return of 0. Its R-squared is 0 while BNDX’s Alpha is 0. Furthermore, the fund has a Beta of 0 and a Standard Deviation of 0.
IWF’s Mean Return is 1.48 points higher than that of BNDX and its R-squared is 92.93 points higher. With a Standard Deviation of 14.42, IWF is slightly more volatile than BNDX. The Alpha and Beta of IWF are 2.16 points higher and 1.03 points higher than BNDX’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 2014 was the strongest year for BNDX, returning 8.83% on an annual basis. The poorest year for BNDX in the last ten years was 2013, with a yield of 0.0%. Most years the Vanguard Total International Bond Index Fund ETF Shares has given investors modest returns, such as in 2015, 2017, and 2018, when gains were 1.08%, 2.4%, and 2.94% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWF would have resulted in a final balance of $30,582. This is a profit of $20,582 over 7 years and amounts to a compound annual growth rate (CAGR) of 17.72%.
With a $10,000 investment in BNDX, the end total would have been $13,695. This equates to a $3,695 profit over 7 years and a compound annual growth rate (CAGR) of 4.63%.
IWF’s CAGR is 13.10 percentage points higher than that of BNDX and as a result, would have yielded $16,887 more on a $10,000 investment. Thus, IWF outperformed BNDX by 13.10% annually.
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