The iShares Russell 1000 Growth ETF (IWF) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IVE is a iShares Large Value fund. So, what’s the difference between IWF and IVE? And which fund is better?
The expense ratio of IWF is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%). IWF also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWF has provided higher returns than IVE over the past ten years.
In this article, we’ll compare IWF vs. IVE. We’ll look at risk metrics and portfolio growth, as well as at their holdings and fund composition. Moreover, I’ll also discuss IWF’s and IVE’s performance, industry exposure, and annual returns and examine how these affect their overall returns.
Summary
| IWF | IVE | |
| Name | iShares Russell 1000 Growth ETF | iShares S&P 500 Value ETF |
| Category | Large Growth | Large Value |
| Issuer | iShares | iShares |
| AUM | 72.16B | 22.4B |
| Avg. Return | 17.72% | 11.68% |
| Div. Yield | 0.52% | 1.88% |
| Expense Ratio | 0.19% | 0.18% |
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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
IWF’s dividend yield is 1.36% lower than that of IVE (0.52% vs. 1.88%). Also, IWF yielded on average 6.04% more per year over the past decade (17.72% vs. 11.68%). The expense ratio of IWF is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%).
Fund Composition
Industry Exposure
| IWF | IVE | |
| Technology | 39.29% | 9.41% |
| Industrials | 6.19% | 12.19% |
| Energy | 0.28% | 5.43% |
| Communication Services | 12.82% | 6.4% |
| Utilities | 0.03% | 4.82% |
| Healthcare | 9.23% | 15.4% |
| Consumer Defensive | 4.31% | 9.23% |
| Real Estate | 1.85% | 4.38% |
| Financial Services | 7.36% | 22.06% |
| Consumer Cyclical | 17.62% | 7.68% |
| Basic Materials | 1.01% | 2.99% |
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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.
IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.
IWF is 29.88% more exposed to the Technology sector than IVE (39.29% vs 9.41%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 9.94% higher and 6.42% higher respectively (17.62% vs. 7.68% and 12.82% vs. 6.4%). In total, Energy, Basic Materials, and Real Estate also make up 9.66% less of the fund’s holdings compared to IVE (3.14% vs. 12.80%).
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%.
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
Risk Analysis
| IWF | IVE | |
| Mean Return | 1.48 | 1.05 |
| R-squared | 92.93 | 92.08 |
| Std. Deviation | 14.42 | 14.3 |
| Alpha | 2.16 | -2.9 |
| Beta | 1.03 | 1.01 |
| Sharpe Ratio | 1.19 | 0.83 |
| Treynor Ratio | 17.1 | 11.41 |
The iShares Russell 1000 Growth ETF (IWF) has a Alpha of 2.16 with a R-squared of 92.93 and a Standard Deviation of 14.42. Its Beta is 1.03 while IWF’s Mean Return is 1.48. Furthermore, the fund has a Sharpe Ratio of 1.19 and a Treynor Ratio of 17.1.
The iShares S&P 500 Value ETF (IVE) has a Treynor Ratio of 11.41 with a Beta of 1.01 and a Standard Deviation of 14.3. Its Alpha is -2.9 while IVE’s R-squared is 92.08. Furthermore, the fund has a Sharpe Ratio of 0.83 and a Mean Return of 1.05.
IWF’s Mean Return is 0.43 points higher than that of IVE and its R-squared is 0.85 points higher. With a Standard Deviation of 14.42, IWF is slightly more volatile than IVE. The Alpha and Beta of IWF are 5.06 points higher and 0.02 points higher than IVE’s Alpha and Beta.
Performance
Annual Returns
| Year | IWF | IVE |
| 2020 | 38.21% | 1.24% |
| 2019 | 36.08% | 31.71% |
| 2018 | -1.68% | -9.09% |
| 2017 | 29.96% | 15.19% |
| 2016 | 6.92% | 17.17% |
| 2015 | 5.48% | -3.24% |
| 2014 | 12.84% | 12.14% |
| 2013 | 33.19% | 31.69% |
| 2012 | 15.03% | 17.45% |
| 2011 | 2.47% | -0.63% |
| 2010 | 16.47% | 14.9% |
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 2019 was the strongest year for IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWF | $10,000 | $55,920 | 17.72% |
| IVE | $10,000 | $31,350 | 11.68% |
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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.
IWF’s CAGR is 6.04 percentage points higher than that of IVE and as a result, would have yielded $24,570 more on a $10,000 investment. Thus, IWF outperformed IVE by 6.04% annually.
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