The iShares Russell Mid-Cap ETF (IWR) and the iShares MSCI ACWI ETF (ACWI) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and ACWI is a iShares N/A fund. So, what’s the difference between IWR and ACWI? And which fund is better?
The expense ratio of IWR is 0.13 percentage points lower than ACWI’s (0.19% vs. 0.32%). IWR also has a lower exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than ACWI over the past ten years.
In this article, we’ll compare IWR vs. ACWI. We’ll look at industry exposure and performance, as well as at their annual returns and fund composition. Moreover, I’ll also discuss IWR’s and ACWI’s risk metrics, portfolio growth, and holdings and examine how these affect their overall returns.
|Name||iShares Russell Mid-Cap ETF||iShares MSCI ACWI ETF|
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%.
The iShares MSCI ACWI ETF (ACWI) is a N/A fund that is issued by iShares. It currently has 16.85B total assets under management and has yielded an average annual return of 10.21% over the past 10 years. The fund has a dividend yield of 1.39% with an expense ratio of 0.32%.
IWR’s dividend yield is 0.40% lower than that of ACWI (0.99% vs. 1.39%). Also, IWR yielded on average 3.94% more per year over the past decade (14.15% vs. 10.21%). The expense ratio of IWR is 0.13 percentage points lower than ACWI’s (0.19% vs. 0.32%).
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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%.
The iShares MSCI ACWI ETF (ACWI) has the most exposure to the Technology sector at 20.41%. This is followed by Financial Services and Consumer Cyclical at 15.58% and 12.01% respectively. Real Estate (2.75%), Energy (3.48%), and Basic Materials (4.73%) only make up 10.96% of the fund’s total assets.
ACWI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Healthcare, and Consumer Cyclical stocks at 7.15%, 9.65%, 9.87%, 11.74%, and 12.01%.
IWR is 0.74% less exposed to the Technology sector than ACWI (19.67% vs 20.41%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 4.89% higher and 1.58% higher respectively (14.54% vs. 9.65% and 13.59% vs. 12.01%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 2.11% less of the fund’s holdings compared to ACWI (12.38% vs. 14.49%).
|IDEXX Laboratories Inc||0.51%|
|Chipotle Mexican Grill Inc||0.47%|
|Roku Inc Class A||0.44%|
|Marvell Technology Inc||0.44%|
|Trane Technologies PLC||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%.
|Facebook Inc A||1.25%|
|Alphabet Inc Class C||1.12%|
|Alphabet Inc A||1.09%|
|Taiwan Semiconductor Manufacturing Co Ltd||0.79%|
|JPMorgan Chase & Co||0.71%|
ACWI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc Class C at 3.44%, 2.91%, 2.21%, 1.25%, and 1.12%.
Alphabet Inc A (1.09%), Taiwan Semiconductor Manufacturing Co Ltd (0.79%), and Tesla Inc (0.78%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ACWI’s holdings at 0.74% and 0.71%.
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The iShares Russell Mid-Cap ETF (IWR) has a Treynor Ratio of 11.72 with a R-squared of 91.52 and a Sharpe Ratio of 0.86. Its Mean Return is 1.17 while IWR’s Beta is 1.11. Furthermore, the fund has a Standard Deviation of 15.66 and a Alpha of -2.8.
The iShares MSCI ACWI ETF (ACWI) has a Standard Deviation of 14.05 with a Treynor Ratio of 9.45 and a R-squared of 99.96. Its Sharpe Ratio is 0.71 while ACWI’s Mean Return is 0.89. Furthermore, the fund has a Beta of 1 and a Alpha of 0.15.
IWR’s Mean Return is 0.28 points higher than that of ACWI and its R-squared is 8.44 points lower. With a Standard Deviation of 15.66, IWR is slightly more volatile than ACWI. The Alpha and Beta of IWR are 2.95 points lower and 0.11 points higher than ACWI’s Alpha and Beta.
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IWR had its best year in 2013 with an annual return of 34.5%. IWR’s worst year over the past decade yielded -9.13% and occurred in 2018. In most years the iShares Russell Mid-Cap ETF provided moderate returns such as in 2016, 2020, and 2012 where annual returns amounted to 13.58%, 16.91%, and 17.13% respectively.
The year 2019 was the strongest year for ACWI, returning 26.7% on an annual basis. The poorest year for ACWI in the last ten years was 2018, with a yield of -9.15%. Most years the iShares MSCI ACWI ETF has given investors modest returns, such as in 2016, 2010, and 2012, when gains were 8.22%, 12.31%, and 15.99% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWR would have resulted in a final balance of $39,751. This is a profit of $29,751 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.15%.
With a $10,000 investment in ACWI, the end total would have been $27,241. This equates to a $17,241 profit over 11 years and a compound annual growth rate (CAGR) of 10.21%.
IWR’s CAGR is 3.94 percentage points higher than that of ACWI and as a result, would have yielded $12,510 more on a $10,000 investment. Thus, IWR outperformed ACWI by 3.94% annually.
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