IWF vs. IWP: What’s The Difference?

The iShares Russell 1000 Growth ETF (IWF) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between IWF and IWP? And which fund is better?

The expense ratio of IWF is 0.05 percentage points lower than IWP’s (0.19% vs. 0.24%). IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than IWP over the past ten years.

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

Summary

IWF IWP
Name iShares Russell 1000 Growth ETF iShares Russell Mid-Cap Growth ETF
Category Large Growth Mid-Cap Growth
Issuer iShares iShares
AUM 72.16B 15.7B
Avg. Return 17.72% 16.75%
Div. Yield 0.52% 0.26%
Expense Ratio 0.19% 0.24%

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 Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

IWF’s dividend yield is 0.26% higher than that of IWP (0.52% vs. 0.26%). Also, IWF yielded on average 0.98% more per year over the past decade (17.72% vs. 16.75%). The expense ratio of IWF is 0.05 percentage points lower than IWP’s (0.19% vs. 0.24%).

Fund Composition

Industry Exposure

IWF vs. IWP - Industry Exposure

IWF IWP
Technology 39.29% 33.88%
Industrials 6.19% 14.09%
Energy 0.28% 1.51%
Communication Services 12.82% 6.32%
Utilities 0.03% 0.16%
Healthcare 9.23% 16.79%
Consumer Defensive 4.31% 2.32%
Real Estate 1.85% 2.46%
Financial Services 7.36% 4.52%
Consumer Cyclical 17.62% 16.09%
Basic Materials 1.01% 1.86%

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 Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.

IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.

IWF is 5.41% more exposed to the Technology sector than IWP (39.29% vs 33.88%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 1.53% higher and 6.50% higher respectively (17.62% vs. 16.09% and 12.82% vs. 6.32%). In total, Energy, Basic Materials, and Real Estate also make up 2.69% less of the fund’s holdings compared to IWP (3.14% vs. 5.83%).

Holdings

IWF - 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%.

IWP - Holdings

IWP Holdings Weight
IDEXX Laboratories Inc 1.3%
DocuSign Inc 1.3%
Roku Inc Class A 1.29%
Match Group Inc 1.06%
Chipotle Mexican Grill Inc 1.06%
Pinterest Inc 1.05%
Veeva Systems Inc Class A 1.04%
Palantir Technologies Inc Ordinary Shares – Class A 1.04%
Lululemon Athletica Inc 1.01%
DexCom Inc 1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

Risk Analysis

IWF IWP
Mean Return 1.48 1.27
R-squared 92.93 87.01
Std. Deviation 14.42 16.05
Alpha 2.16 -1.03
Beta 1.03 1.1
Sharpe Ratio 1.19 0.91
Treynor Ratio 17.1 12.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a R-squared of 87.01 with a Mean Return of 1.27 and a Standard Deviation of 16.05. Its Alpha is -1.03 while IWP’s Beta is 1.1. Furthermore, the fund has a Sharpe Ratio of 0.91 and a Treynor Ratio of 12.98.

IWF’s Mean Return is 0.21 points higher than that of IWP and its R-squared is 5.92 points higher. With a Standard Deviation of 14.42, IWF is slightly less volatile than IWP. The Alpha and Beta of IWF are 3.19 points higher and 0.07 points lower than IWP’s Alpha and Beta.

Performance

Annual Returns

IWF vs. IWP - Annual Returns

Year IWF IWP
2020 38.21% 35.29%
2019 36.08% 35.14%
2018 -1.68% -4.95%
2017 29.96% 24.98%
2016 6.92% 7.15%
2015 5.48% -0.39%
2014 12.84% 11.68%
2013 33.19% 35.44%
2012 15.03% 15.62%
2011 2.47% -1.82%
2010 16.47% 26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

IWF vs. IWP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWF $10,000 $55,920 17.72%
IWP $10,000 $50,191 16.75%

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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.

IWF’s CAGR is 0.98 percentage points higher than that of IWP and as a result, would have yielded $5,729 more on a $10,000 investment. Thus, IWF outperformed IWP by 0.98% annually.


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