IWF vs. IWR: What’s The Difference?

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

IWF and IWR have the same expense ratio: 0.19%. IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than IWR over the past ten years.

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

Summary

IWF IWR
Name iShares Russell 1000 Growth ETF iShares Russell Mid-Cap ETF
Category Large Growth Mid-Cap Blend
Issuer iShares iShares
AUM 72.16B 29.84B
Avg. Return 17.72% 14.15%
Div. Yield 0.52% 0.99%
Expense Ratio 0.19% 0.19%

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 ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% with an expense ratio of 0.19%.

IWF’s dividend yield is 0.47% lower than that of IWR (0.52% vs. 0.99%). Also, IWF yielded on average 3.57% more per year over the past decade (17.72% vs. 14.15%). IWF and IWR have the same expense ratio: 0.19%.

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Fund Composition

Industry Exposure

IWF vs. IWR - Industry Exposure

IWF IWR
Technology 39.29% 19.67%
Industrials 6.19% 14.54%
Energy 0.28% 3.48%
Communication Services 12.82% 4.64%
Utilities 0.03% 4.46%
Healthcare 9.23% 11.76%
Consumer Defensive 4.31% 3.82%
Real Estate 1.85% 8.31%
Financial Services 7.36% 11.64%
Consumer Cyclical 17.62% 13.59%
Basic Materials 1.01% 4.1%

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 ETF (IWR) has the most exposure to the Technology sector at 19.67%. This is followed by Industrials and Consumer Cyclical at 14.54% and 13.59% respectively. Consumer Defensive (3.82%), Basic Materials (4.1%), and Utilities (4.46%) only make up 12.38% of the fund’s total assets.

IWR’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Financial Services, Healthcare, and Consumer Cyclical stocks at 4.64%, 8.31%, 11.64%, 11.76%, and 13.59%.

IWF is 19.62% more exposed to the Technology sector than IWR (39.29% vs 19.67%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 4.03% higher and 8.18% higher respectively (17.62% vs. 13.59% and 12.82% vs. 4.64%). In total, Energy, Basic Materials, and Real Estate also make up 12.75% less of the fund’s holdings compared to IWR (3.14% vs. 15.89%).

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%.

IWR - Holdings

IWR Holdings Weight
IDEXX Laboratories Inc 0.51%
DocuSign Inc 0.51%
Twitter Inc 0.48%
Chipotle Mexican Grill Inc 0.47%
Roku Inc Class A 0.44%
Marvell Technology Inc 0.44%
DexCom Inc 0.44%
Trane Technologies PLC 0.43%
MSCI Inc 0.43%
Carrier Global Corp Ordinary Shares 0.43%

IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.

Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.

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Risk Analysis

IWF IWR
Mean Return 1.48 1.17
R-squared 92.93 91.52
Std. Deviation 14.42 15.66
Alpha 2.16 -2.8
Beta 1.03 1.11
Sharpe Ratio 1.19 0.86
Treynor Ratio 17.1 11.72

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

The iShares Russell Mid-Cap ETF (IWR) has a Mean Return of 1.17 with a Standard Deviation of 15.66 and a R-squared of 91.52. Its Sharpe Ratio is 0.86 while IWR’s Treynor Ratio is 11.72. Furthermore, the fund has a Alpha of -2.8 and a Beta of 1.11.

IWF’s Mean Return is 0.31 points higher than that of IWR and its R-squared is 1.41 points higher. With a Standard Deviation of 14.42, IWF is slightly less volatile than IWR. The Alpha and Beta of IWF are 4.96 points higher and 0.08 points lower than IWR’s Alpha and Beta.

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Performance

Annual Returns

IWF vs. IWR - Annual Returns

Year IWF IWR
2020 38.21% 16.91%
2019 36.08% 30.31%
2018 -1.68% -9.13%
2017 29.96% 18.32%
2016 6.92% 13.58%
2015 5.48% -2.57%
2014 12.84% 13.03%
2013 33.19% 34.5%
2012 15.03% 17.13%
2011 2.47% -1.67%
2010 16.47% 25.25%

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 IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.

Portfolio Growth

IWF vs. IWR - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWF $10,000 $55,920 17.72%
IWR $10,000 $39,751 14.15%

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 IWR, the end total would have been $39,751. This equates to a $29,751 profit over 11 years and a compound annual growth rate (CAGR) of 14.15%.

IWF’s CAGR is 3.57 percentage points higher than that of IWR and as a result, would have yielded $16,169 more on a $10,000 investment. Thus, IWF outperformed IWR by 3.57% annually.


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