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IWF vs. SCHF: What’s The Difference?

The iShares Russell 1000 Growth ETF (IWF) and the Schwab International Equity ETF (SCHF) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and SCHF is a Schwab ETFs Foreign Large Blend fund. So, what’s the difference between IWF and SCHF? And which fund is better?

The expense ratio of IWF is 0.13 percentage points higher than SCHF’s (0.19% vs. 0.06%). IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than SCHF over the past ten years.

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

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Summary

IWFSCHF
NameiShares Russell 1000 Growth ETFSchwab International Equity ETF
CategoryLarge GrowthForeign Large Blend
IssueriSharesSchwab ETFs
AUM72.16B26.99B
Avg. Return17.72%6.43%
Div. Yield0.52%2.16%
Expense Ratio0.19%0.06%

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 Schwab International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

IWF’s dividend yield is 1.64% lower than that of SCHF (0.52% vs. 2.16%). Also, IWF yielded on average 11.30% more per year over the past decade (17.72% vs. 6.43%). The expense ratio of IWF is 0.13 percentage points higher than SCHF’s (0.19% vs. 0.06%).

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Fund Composition

Industry Exposure

IWF vs. SCHF - Industry Exposure

IWFSCHF
Technology39.29%11.55%
Industrials6.19%14.86%
Energy0.28%4.23%
Communication Services12.82%5.65%
Utilities0.03%3.09%
Healthcare9.23%11.05%
Consumer Defensive4.31%9.41%
Real Estate1.85%3.17%
Financial Services7.36%17.85%
Consumer Cyclical17.62%10.87%
Basic Materials1.01%8.26%

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 Schwab International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

IWF is 27.74% more exposed to the Technology sector than SCHF (39.29% vs 11.55%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 6.75% higher and 7.17% higher respectively (17.62% vs. 10.87% and 12.82% vs. 5.65%). In total, Energy, Basic Materials, and Real Estate also make up 12.52% less of the fund’s holdings compared to SCHF (3.14% vs. 15.66%).

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%.

SCHF - Holdings

SCHF HoldingsWeight
Nestle SA1.66%
Samsung Electronics Co Ltd1.6%
ASML Holding NV1.29%
Roche Holding AG1.24%
Toyota Motor Corp1.02%
LVMH Moet Hennessy Louis Vuitton SE0.93%
Novartis AG0.92%
Shopify Inc A0.78%
AstraZeneca PLC0.75%
SAP SE0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

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Risk Analysis

IWFSCHF
Mean Return1.480.58
R-squared92.9398.16
Std. Deviation14.4215.08
Alpha2.160.53
Beta1.030.99
Sharpe Ratio1.190.42
Treynor Ratio17.15.39

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

The Schwab International Equity ETF (SCHF) has a Treynor Ratio of 5.39 with a Standard Deviation of 15.08 and a Sharpe Ratio of 0.42. Its Beta is 0.99 while SCHF’s Alpha is 0.53. Furthermore, the fund has a R-squared of 98.16 and a Mean Return of 0.58.

IWF’s Mean Return is 0.90 points higher than that of SCHF and its R-squared is 5.23 points lower. With a Standard Deviation of 14.42, IWF is slightly less volatile than SCHF. The Alpha and Beta of IWF are 1.63 points higher and 0.04 points higher than SCHF’s Alpha and Beta.

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Performance

Annual Returns

IWF vs. SCHF - Annual Returns

YearIWFSCHF
202038.21%9.86%
201936.08%22.15%
2018-1.68%-14.39%
201729.96%25.83%
20166.92%2.88%
20155.48%-2.44%
201412.84%-4.44%
201333.19%20.03%
201215.03%17.12%
20112.47%-12.32%
201016.47%8.6%

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 2017 was the strongest year for SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

IWF vs. SCHF - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWF$10,000$48,01217.72%
SCHF$10,000$17,0896.43%

A $10,000 investment in IWF would have resulted in a final balance of $48,012. This is a profit of $38,012 over 10 years and amounts to a compound annual growth rate (CAGR) of 17.72%.

With a $10,000 investment in SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

IWF’s CAGR is 11.30 percentage points higher than that of SCHF and as a result, would have yielded $30,923 more on a $10,000 investment. Thus, IWF outperformed SCHF by 11.30% annually.


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