The iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IWF and EFV? And which fund is better?
The expense ratio of IWF is 0.20 percentage points lower than EFV’s (0.19% vs. 0.39%). IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than EFV over the past ten years.
In this article, we’ll compare IWF vs. EFV. We’ll look at fund composition and risk metrics, as well as at their performance and holdings. Moreover, I’ll also discuss IWF’s and EFV’s industry exposure, portfolio growth, and annual returns and examine how these affect their overall returns.
Summary
| IWF | EFV | |
| Name | iShares Russell 1000 Growth ETF | iShares MSCI EAFE Value ETF |
| Category | Large Growth | Foreign Large Value |
| Issuer | iShares | iShares |
| AUM | 72.16B | 14.37B |
| Avg. Return | 17.72% | 3.99% |
| Div. Yield | 0.52% | 2.94% |
| Expense Ratio | 0.19% | 0.39% |
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 iShares MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
IWF’s dividend yield is 2.42% lower than that of EFV (0.52% vs. 2.94%). Also, IWF yielded on average 13.73% more per year over the past decade (17.72% vs. 3.99%). The expense ratio of IWF is 0.20 percentage points lower than EFV’s (0.19% vs. 0.39%).
Fund Composition
Industry Exposure
| IWF | EFV | |
| Technology | 39.29% | 2.98% |
| Industrials | 6.19% | 11.6% |
| Energy | 0.28% | 6.6% |
| Communication Services | 12.82% | 6.46% |
| Utilities | 0.03% | 6.14% |
| Healthcare | 9.23% | 9.19% |
| Consumer Defensive | 4.31% | 6.82% |
| Real Estate | 1.85% | 5.06% |
| Financial Services | 7.36% | 26.55% |
| Consumer Cyclical | 17.62% | 9.0% |
| Basic Materials | 1.01% | 9.59% |
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 iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
IWF is 36.31% more exposed to the Technology sector than EFV (39.29% vs 2.98%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 8.62% higher and 6.36% higher respectively (17.62% vs. 9.0% and 12.82% vs. 6.46%). In total, Energy, Basic Materials, and Real Estate also make up 18.11% less of the fund’s holdings compared to EFV (3.14% vs. 21.25%).
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%.
| EFV Holdings | Weight |
| Novartis AG | 2.41% |
| Toyota Motor Corp | 2.21% |
| Commonwealth Bank of Australia | 1.59% |
| Siemens AG | 1.45% |
| Sanofi SA | 1.42% |
| HSBC Holdings PLC | 1.4% |
| TotalEnergies SE | 1.35% |
| Allianz SE | 1.23% |
| GlaxoSmithKline PLC | 1.18% |
| Rio Tinto PLC | 1.1% |
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
Risk Analysis
| IWF | EFV | |
| Mean Return | 1.48 | 0.42 |
| R-squared | 92.93 | 92.15 |
| Std. Deviation | 14.42 | 16.53 |
| Alpha | 2.16 | -1.77 |
| Beta | 1.03 | 1.05 |
| Sharpe Ratio | 1.19 | 0.26 |
| Treynor Ratio | 17.1 | 2.92 |
The iShares Russell 1000 Growth ETF (IWF) has a Standard Deviation of 14.42 with a Sharpe Ratio of 1.19 and a Beta of 1.03. Its R-squared is 92.93 while IWF’s Treynor Ratio is 17.1. Furthermore, the fund has a Mean Return of 1.48 and a Alpha of 2.16.
The iShares MSCI EAFE Value ETF (EFV) has a Sharpe Ratio of 0.26 with a Alpha of -1.77 and a Treynor Ratio of 2.92. Its Mean Return is 0.42 while EFV’s Standard Deviation is 16.53. Furthermore, the fund has a R-squared of 92.15 and a Beta of 1.05.
IWF’s Mean Return is 1.06 points higher than that of EFV and its R-squared is 0.78 points higher. With a Standard Deviation of 14.42, IWF is slightly less volatile than EFV. The Alpha and Beta of IWF are 3.93 points higher and 0.02 points lower than EFV’s Alpha and Beta.
Performance
Annual Returns
| Year | IWF | EFV |
| 2020 | 38.21% | -2.78% |
| 2019 | 36.08% | 15.97% |
| 2018 | -1.68% | -14.88% |
| 2017 | 29.96% | 21.22% |
| 2016 | 6.92% | 4.87% |
| 2015 | 5.48% | -5.89% |
| 2014 | 12.84% | -5.65% |
| 2013 | 33.19% | 22.61% |
| 2012 | 15.03% | 17.52% |
| 2011 | 2.47% | -12.24% |
| 2010 | 16.47% | 3.18% |
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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWF | $10,000 | $55,920 | 17.72% |
| EFV | $10,000 | $14,134 | 3.99% |
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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.
IWF’s CAGR is 13.73 percentage points higher than that of EFV and as a result, would have yielded $41,786 more on a $10,000 investment. Thus, IWF outperformed EFV by 13.73% annually.
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