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IWF vs. IVW: What’s The Difference?

The iShares Russell 1000 Growth ETF (IWF) and the iShares S&P 500 Growth ETF (IVW) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IVW is a iShares Large Growth fund. So, what’s the difference between IWF and IVW? And which fund is better?

The expense ratio of IWF is 0.01 percentage points higher than IVW’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 IVW over the past ten years.

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

Introduction To Mutual Funds
Introduction To Mutual Funds
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Summary

IWFIVW
NameiShares Russell 1000 Growth ETFiShares S&P 500 Growth ETF
CategoryLarge GrowthLarge Growth
IssueriSharesiShares
AUM72.16B35.72B
Avg. Return17.72%16.74%
Div. Yield0.52%0.61%
Expense Ratio0.19%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 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.

IWF’s dividend yield is 0.09% lower than that of IVW (0.52% vs. 0.61%). Also, IWF yielded on average 0.99% more per year over the past decade (17.72% vs. 16.74%). The expense ratio of IWF is 0.01 percentage points higher than IVW’s (0.19% vs. 0.18%).

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Fund Composition

Industry Exposure

IWF vs. IVW - Industry Exposure

IWFIVW
Technology39.29%37.8%
Industrials6.19%5.72%
Energy0.28%0.06%
Communication Services12.82%15.44%
Utilities0.03%0.47%
Healthcare9.23%11.88%
Consumer Defensive4.31%3.84%
Real Estate1.85%1.11%
Financial Services7.36%6.78%
Consumer Cyclical17.62%15.25%
Basic Materials1.01%1.65%

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 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.

IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.

IWF is 1.49% more exposed to the Technology sector than IVW (39.29% vs 37.8%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 2.37% higher and 2.62% lower respectively (17.62% vs. 15.25% and 12.82% vs. 15.44%). In total, Energy, Basic Materials, and Real Estate also make up 0.32% more of the fund’s holdings compared to IVW (3.14% vs. 2.82%).

Holdings

IWF - Holdings

IWF HoldingsWeight
Apple Inc10.51%
Microsoft Corp9.85%
Amazon.com Inc6.63%
Facebook Inc Class A3.91%
Alphabet Inc Class A3.2%
Alphabet Inc Class C3.03%
Tesla Inc2.45%
NVIDIA Corp2.14%
Visa Inc Class A1.91%
The Home Depot Inc1.62%

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%.

IVW - Holdings

IVW HoldingsWeight
Apple Inc11.46%
Microsoft Corp10.75%
Amazon.com Inc7.14%
Facebook Inc Class A4.28%
Alphabet Inc Class A4.06%
Alphabet Inc Class C3.86%
Tesla Inc2.65%
NVIDIA Corp2.43%
PayPal Holdings Inc1.62%
Adobe Inc1.49%

IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.

Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.

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Risk Analysis

IWFIVW
Mean Return1.481.44
R-squared92.9393.82
Std. Deviation14.4213.77
Alpha2.162.19
Beta1.030.98
Sharpe Ratio1.191.21
Treynor Ratio17.117.24

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

The iShares S&P 500 Growth ETF (IVW) has a Alpha of 2.19 with a Beta of 0.98 and a R-squared of 93.82. Its Standard Deviation is 13.77 while IVW’s Mean Return is 1.44. Furthermore, the fund has a Treynor Ratio of 17.24 and a Sharpe Ratio of 1.21.

IWF’s Mean Return is 0.04 points higher than that of IVW and its R-squared is 0.89 points lower. With a Standard Deviation of 14.42, IWF is slightly more volatile than IVW. The Alpha and Beta of IWF are 0.03 points lower and 0.05 points higher than IVW’s Alpha and Beta.

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Performance

Annual Returns

IWF vs. IVW - Annual Returns

YearIWFIVW
202038.21%33.21%
201936.08%30.91%
2018-1.68%-0.17%
201729.96%27.2%
20166.92%6.74%
20155.48%5.33%
201412.84%14.67%
201333.19%32.48%
201215.03%14.39%
20112.47%4.49%
201016.47%14.84%

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 2020 was the strongest year for IVW, returning 33.21% on an annual basis. The poorest year for IVW in the last ten years was 2018, with a yield of -0.17%. Most years the iShares S&P 500 Growth ETF has given investors modest returns, such as in 2012, 2014, and 2010, when gains were 14.39%, 14.67%, and 14.84% respectively.

Portfolio Growth

IWF vs. IVW - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWF$10,000$55,92017.72%
IVW$10,000$51,91516.74%

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 IVW, the end total would have been $51,915. This equates to a $41,915 profit over 11 years and a compound annual growth rate (CAGR) of 16.74%.

IWF’s CAGR is 0.99 percentage points higher than that of IVW and as a result, would have yielded $4,005 more on a $10,000 investment. Thus, IWF outperformed IVW by 0.99% annually.


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