The iShares Russell 1000 Growth ETF (IWF) and the iShares Gold Trust (IAU) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IAU is a iShares N/A fund. So, what’s the difference between IWF and IAU? And which fund is better?
The expense ratio of IWF is 0.06 percentage points lower than IAU’s (0.19% vs. 0.25%). IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than IAU over the past ten years.
In this article, we’ll compare IWF vs. IAU. We’ll look at holdings and industry exposure, as well as at their performance and annual returns. Moreover, I’ll also discuss IWF’s and IAU’s risk metrics, portfolio growth, and fund composition and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||iShares Gold Trust|
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 Gold Trust (IAU) is a N/A fund that is issued by iShares. It currently has 28.61B total assets under management and has yielded an average annual return of 6.03% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.25%.
IWF’s dividend yield is 0.52% higher than that of IAU (0.52% vs. 0.0%). Also, IWF yielded on average 11.69% more per year over the past decade (17.72% vs. 6.03%). The expense ratio of IWF is 0.06 percentage points lower than IAU’s (0.19% vs. 0.25%).
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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 Gold Trust (IAU) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
IAU’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
IWF is 39.29% more exposed to the Technology sector than IAU (39.29% vs 0.0%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 17.62% higher and 12.82% higher respectively (17.62% vs. 0.0% and 12.82% vs. 0.0%). In total, Energy, Basic Materials, and Real Estate also make up 3.14% more of the fund’s holdings compared to IAU (3.14% vs. 0.00%).
|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%.
IAU’s Top Holdings are Gold, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the IAU’s holdings at 0% and 0%.
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The iShares Russell 1000 Growth ETF (IWF) has a Standard Deviation of 14.42 with a Sharpe Ratio of 1.19 and a Alpha of 2.16. Its Beta is 1.03 while IWF’s Treynor Ratio is 17.1. Furthermore, the fund has a R-squared of 92.93 and a Mean Return of 1.48.
The iShares Gold Trust (IAU) has a Mean Return of 0.23 with a Alpha of 4.16 and a Beta of 0.48. Its Sharpe Ratio is 0.13 while IAU’s R-squared is 16.03. Furthermore, the fund has a Standard Deviation of 16.97 and a Treynor Ratio of 1.5.
IWF’s Mean Return is 1.25 points higher than that of IAU and its R-squared is 76.90 points higher. With a Standard Deviation of 14.42, IWF is slightly less volatile than IAU. The Alpha and Beta of IWF are 2.00 points lower and 0.55 points higher than IAU’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 2010 was the strongest year for IAU, returning 27.93% on an annual basis. The poorest year for IAU in the last ten years was 2013, with a yield of -27.96%. Most years the iShares Gold Trust has given investors modest returns, such as in 2012, 2011, and 2016, when gains were 8.37%, 8.66%, and 8.85% 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 IAU, the end total would have been $16,786. This equates to a $6,786 profit over 11 years and a compound annual growth rate (CAGR) of 6.03%.
IWF’s CAGR is 11.69 percentage points higher than that of IAU and as a result, would have yielded $39,134 more on a $10,000 investment. Thus, IWF outperformed IAU by 11.69% annually.
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