The iShares Russell 1000 Growth ETF (IWF) and the iShares Russell 1000 Value ETF (IWD) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IWD is a iShares Large Value fund. So, what’s the difference between IWF and IWD? And which fund is better?
IWF and IWD have the same expense ratio: 0.19%. IWF also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWF has provided higher returns than IWD over the past ten years.
In this article, we’ll compare IWF vs. IWD. We’ll look at performance and industry exposure, as well as at their risk metrics and holdings. Moreover, I’ll also discuss IWF’s and IWD’s fund composition, portfolio growth, and annual returns and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||iShares Russell 1000 Value ETF|
|Category||Large Growth||Large Value|
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 Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
IWF’s dividend yield is 1.05% lower than that of IWD (0.52% vs. 1.57%). Also, IWF yielded on average 6.32% more per year over the past decade (17.72% vs. 11.40%). IWF and IWD have the same expense ratio: 0.19%.
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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 Russell 1000 Value ETF (IWD) has the most exposure to the Financial Services sector at 20.43%. This is followed by Healthcare and Industrials at 17.78% and 11.77% respectively. Energy (4.76%), Utilities (4.88%), and Real Estate (4.94%) only make up 14.58% of the fund’s total assets.
IWD’s mid-section with moderate exposure is comprised of Consumer Cyclical, Consumer Defensive, Communication Services, Technology, and Industrials stocks at 5.62%, 7.76%, 8.67%, 10.28%, and 11.77%.
IWF is 29.01% more exposed to the Technology sector than IWD (39.29% vs 10.28%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 12.00% higher and 4.15% higher respectively (17.62% vs. 5.62% and 12.82% vs. 8.67%). In total, Energy, Basic Materials, and Real Estate also make up 9.66% less of the fund’s holdings compared to IWD (3.14% vs. 12.80%).
|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%.
|Berkshire Hathaway Inc Class B||2.58%|
|JPMorgan Chase & Co||2.25%|
|Johnson & Johnson||2.24%|
|UnitedHealth Group Inc||1.78%|
|Procter & Gamble Co||1.71%|
|The Walt Disney Co||1.5%|
|Bank of America Corp||1.43%|
|Comcast Corp Class A||1.33%|
|Exxon Mobil Corp||1.2%|
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
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The iShares Russell 1000 Growth ETF (IWF) has a Mean Return of 1.48 with a Sharpe Ratio of 1.19 and a Standard Deviation of 14.42. Its Alpha is 2.16 while IWF’s Treynor Ratio is 17.1. Furthermore, the fund has a R-squared of 92.93 and a Beta of 1.03.
The iShares Russell 1000 Value ETF (IWD) has a R-squared of 92.38 with a Treynor Ratio of 11.06 and a Alpha of -3.23. Its Mean Return is 1.03 while IWD’s Beta is 1.02. Furthermore, the fund has a Sharpe Ratio of 0.81 and a Standard Deviation of 14.35.
IWF’s Mean Return is 0.45 points higher than that of IWD and its R-squared is 0.55 points higher. With a Standard Deviation of 14.42, IWF is slightly more volatile than IWD. The Alpha and Beta of IWF are 5.39 points higher and 0.01 points higher than IWD’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 2013 was the strongest year for IWD, returning 32.18% on an annual basis. The poorest year for IWD in the last ten years was 2018, with a yield of -8.4%. Most years the iShares Russell 1000 Value ETF has given investors modest returns, such as in 2014, 2017, and 2010, when gains were 13.21%, 13.47%, and 15.3% 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 IWD, the end total would have been $30,746. This equates to a $20,746 profit over 11 years and a compound annual growth rate (CAGR) of 11.40%.
IWF’s CAGR is 6.32 percentage points higher than that of IWD and as a result, would have yielded $25,174 more on a $10,000 investment. Thus, IWF outperformed IWD by 6.32% annually.
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