IWF vs. DIA: What’s The Difference?

The iShares Russell 1000 Growth ETF (IWF) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IWF and DIA? And which fund is better?

The expense ratio of IWF is 0.03 percentage points higher than DIA’s (0.19% vs. 0.16%). IWF also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWF has provided higher returns than DIA over the past ten years.

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

Summary

IWF DIA
Name iShares Russell 1000 Growth ETF SPDR Dow Jones Industrial Average ETF Trust
Category Large Growth Large Value
Issuer iShares SPDR State Street Global Advisors
AUM 72.16B 30.46B
Avg. Return 17.72% 13.35%
Div. Yield 0.52% 1.61%
Expense Ratio 0.19% 0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

IWF’s dividend yield is 1.09% lower than that of DIA (0.52% vs. 1.61%). Also, IWF yielded on average 4.37% more per year over the past decade (17.72% vs. 13.35%). The expense ratio of IWF is 0.03 percentage points higher than DIA’s (0.19% vs. 0.16%).

Fund Composition

Industry Exposure

IWF vs. DIA - Industry Exposure

IWF DIA
Technology 39.29% 17.32%
Industrials 6.19% 16.7%
Energy 0.28% 2.0%
Communication Services 12.82% 4.42%
Utilities 0.03% 0.0%
Healthcare 9.23% 17.92%
Consumer Defensive 4.31% 6.3%
Real Estate 1.85% 0.0%
Financial Services 7.36% 20.68%
Consumer Cyclical 17.62% 13.44%
Basic Materials 1.01% 1.21%

The iShares Russell 1000 Growth ETF (IWF) has the most exposure to the Technology sector at 39.29%. This is followed by Consumer Cyclical and Communication Services at 17.62% and 12.82% respectively. Energy (0.28%), Basic Materials (1.01%), and Real Estate (1.85%) only make up 3.14% of the fund’s total assets.

IWF’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Communication Services stocks at 4.31%, 6.19%, 7.36%, 9.23%, and 12.82%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

IWF is 21.97% more exposed to the Technology sector than DIA (39.29% vs 17.32%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 4.18% higher and 8.40% higher respectively (17.62% vs. 13.44% and 12.82% vs. 4.42%). In total, Energy, Basic Materials, and Real Estate also make up 0.07% less of the fund’s holdings compared to DIA (3.14% vs. 3.21%).

Holdings

IWF - Holdings

IWF Holdings Weight
Apple Inc 10.51%
Microsoft Corp 9.85%
Amazon.com Inc 6.63%
Facebook Inc Class A 3.91%
Alphabet Inc Class A 3.2%
Alphabet Inc Class C 3.03%
Tesla Inc 2.45%
NVIDIA Corp 2.14%
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%.

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

Risk Analysis

IWF DIA
Mean Return 1.48 1.13
R-squared 92.93 93.31
Std. Deviation 14.42 13.68
Alpha 2.16 -0.94
Beta 1.03 0.97
Sharpe Ratio 1.19 0.94
Treynor Ratio 17.1 13.07

The iShares Russell 1000 Growth ETF (IWF) has a Sharpe Ratio of 1.19 with a Treynor Ratio of 17.1 and a Mean Return of 1.48. Its Alpha is 2.16 while IWF’s Standard Deviation is 14.42. Furthermore, the fund has a Beta of 1.03 and a R-squared of 92.93.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a Standard Deviation of 13.68 and a Alpha of -0.94. Its Sharpe Ratio is 0.94 while DIA’s R-squared is 93.31. Furthermore, the fund has a Mean Return of 1.13 and a Treynor Ratio of 13.07.

IWF’s Mean Return is 0.35 points higher than that of DIA and its R-squared is 0.38 points lower. With a Standard Deviation of 14.42, IWF is slightly more volatile than DIA. The Alpha and Beta of IWF are 3.10 points higher and 0.06 points higher than DIA’s Alpha and Beta.

Performance

Annual Returns

IWF vs. DIA - Annual Returns

Year IWF DIA
2020 38.21% 9.63%
2019 36.08% 25.09%
2018 -1.68% -3.6%
2017 29.96% 27.97%
2016 6.92% 16.28%
2015 5.48% 0.1%
2014 12.84% 9.88%
2013 33.19% 29.41%
2012 15.03% 10.04%
2011 2.47% 8.21%
2010 16.47% 13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

IWF vs. DIA - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWF $10,000 $55,920 17.72%
DIA $10,000 $37,965 13.35%

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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IWF’s CAGR is 4.37 percentage points higher than that of DIA and as a result, would have yielded $17,955 more on a $10,000 investment. Thus, IWF outperformed DIA by 4.37% annually.


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