The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Total World Stock Index Fund ETF Shares (VT) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and VT is a Vanguard N/A fund. So, what’s the difference between IWF and VT? And which fund is better?
The expense ratio of IWF is 0.11 percentage points higher than VT’s (0.19% vs. 0.08%). IWF also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWF has provided higher returns than VT over the past ten years.
In this article, we’ll compare IWF vs. VT. We’ll look at annual returns and industry exposure, as well as at their holdings and risk metrics. Moreover, I’ll also discuss IWF’s and VT’s performance, portfolio growth, and fund composition and examine how these affect their overall returns.
Summary
| IWF | VT | |
| Name | iShares Russell 1000 Growth ETF | Vanguard Total World Stock Index Fund ETF Shares |
| Category | Large Growth | N/A |
| Issuer | iShares | Vanguard |
| AUM | 72.16B | 30.44B |
| Avg. Return | 17.72% | 10.42% |
| Div. Yield | 0.52% | 1.65% |
| Expense Ratio | 0.19% | 0.08% |
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 Vanguard Total World Stock Index Fund ETF Shares (VT) is a N/A fund that is issued by Vanguard. It currently has 30.44B total assets under management and has yielded an average annual return of 10.42% over the past 10 years. The fund has a dividend yield of 1.65% with an expense ratio of 0.08%.
IWF’s dividend yield is 1.13% lower than that of VT (0.52% vs. 1.65%). Also, IWF yielded on average 7.31% more per year over the past decade (17.72% vs. 10.42%). The expense ratio of IWF is 0.11 percentage points higher than VT’s (0.19% vs. 0.08%).
Fund Composition
Industry Exposure
| IWF | VT | |
| Technology | 39.29% | 19.63% |
| Industrials | 6.19% | 10.7% |
| Energy | 0.28% | 3.48% |
| Communication Services | 12.82% | 9.02% |
| Utilities | 0.03% | 2.6% |
| Healthcare | 9.23% | 11.58% |
| Consumer Defensive | 4.31% | 6.71% |
| Real Estate | 1.85% | 3.64% |
| Financial Services | 7.36% | 15.36% |
| Consumer Cyclical | 17.62% | 12.32% |
| Basic Materials | 1.01% | 4.97% |
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 Vanguard Total World Stock Index Fund ETF Shares (VT) has the most exposure to the Technology sector at 19.63%. This is followed by Financial Services and Consumer Cyclical at 15.36% and 12.32% respectively. Energy (3.48%), Real Estate (3.64%), and Basic Materials (4.97%) only make up 12.09% of the fund’s total assets.
VT’s mid-section with moderate exposure is comprised of Consumer Defensive, Communication Services, Industrials, Healthcare, and Consumer Cyclical stocks at 6.71%, 9.02%, 10.7%, 11.58%, and 12.32%.
IWF is 19.66% more exposed to the Technology sector than VT (39.29% vs 19.63%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 5.30% higher and 3.80% higher respectively (17.62% vs. 12.32% and 12.82% vs. 9.02%). In total, Energy, Basic Materials, and Real Estate also make up 8.95% less of the fund’s holdings compared to VT (3.14% vs. 12.09%).
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%.
| VT Holdings | Weight |
| Apple Inc | 2.85% |
| Microsoft Corp | 2.71% |
| Amazon.com Inc | 1.98% |
| Facebook Inc Class A | 1.1% |
| Alphabet Inc Class A | 0.97% |
| Alphabet Inc Class C | 0.95% |
| Tesla Inc | 0.7% |
| NVIDIA Corp | 0.64% |
| JPMorgan Chase & Co | 0.62% |
| Tencent Holdings Ltd | 0.6% |
VT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 2.85%, 2.71%, 1.98%, 1.1%, and 0.97%.
Alphabet Inc Class C (0.95%), Tesla Inc (0.7%), and NVIDIA Corp (0.64%) have a slightly smaller but still significant weight. JPMorgan Chase & Co and Tencent Holdings Ltd are also represented in the VT’s holdings at 0.62% and 0.6%.
Risk Analysis
| IWF | VT | |
| Mean Return | 1.48 | 0.9 |
| R-squared | 92.93 | 99.35 |
| Std. Deviation | 14.42 | 14.19 |
| Alpha | 2.16 | 0.2 |
| Beta | 1.03 | 1.01 |
| Sharpe Ratio | 1.19 | 0.71 |
| Treynor Ratio | 17.1 | 9.5 |
The iShares Russell 1000 Growth ETF (IWF) has a Beta of 1.03 with a Mean Return of 1.48 and a Sharpe Ratio of 1.19. Its Treynor Ratio is 17.1 while IWF’s R-squared is 92.93. Furthermore, the fund has a Standard Deviation of 14.42 and a Alpha of 2.16.
The Vanguard Total World Stock Index Fund ETF Shares (VT) has a Standard Deviation of 14.19 with a R-squared of 99.35 and a Sharpe Ratio of 0.71. Its Mean Return is 0.9 while VT’s Alpha is 0.2. Furthermore, the fund has a Treynor Ratio of 9.5 and a Beta of 1.01.
IWF’s Mean Return is 0.58 points higher than that of VT and its R-squared is 6.42 points lower. With a Standard Deviation of 14.42, IWF is slightly more volatile than VT. The Alpha and Beta of IWF are 1.96 points higher and 0.02 points higher than VT’s Alpha and Beta.
Performance
Annual Returns
| Year | IWF | VT |
| 2020 | 38.21% | 16.74% |
| 2019 | 36.08% | 26.8% |
| 2018 | -1.68% | -9.67% |
| 2017 | 29.96% | 24.19% |
| 2016 | 6.92% | 8.77% |
| 2015 | 5.48% | -1.88% |
| 2014 | 12.84% | 3.97% |
| 2013 | 33.19% | 22.98% |
| 2012 | 15.03% | 17.33% |
| 2011 | 2.47% | -7.71% |
| 2010 | 16.47% | 13.05% |
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 2019 was the strongest year for VT, returning 26.8% on an annual basis. The poorest year for VT in the last ten years was 2018, with a yield of -9.67%. Most years the Vanguard Total World Stock Index Fund ETF Shares has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 8.77%, 13.05%, and 16.74% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWF | $10,000 | $55,920 | 17.72% |
| VT | $10,000 | $27,739 | 10.42% |
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 VT, the end total would have been $27,739. This equates to a $17,739 profit over 11 years and a compound annual growth rate (CAGR) of 10.42%.
IWF’s CAGR is 7.31 percentage points higher than that of VT and as a result, would have yielded $28,181 more on a $10,000 investment. Thus, IWF outperformed VT by 7.31% annually.
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