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IWR vs. DIA: What’s The Difference?

The iShares Russell Mid-Cap ETF (IWR) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IWR and DIA? And which fund is better?

The expense ratio of IWR is 0.03 percentage points higher than DIA’s (0.19% vs. 0.16%). IWR also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than DIA over the past ten years.

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

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Summary

IWRDIA
NameiShares Russell Mid-Cap ETFSPDR Dow Jones Industrial Average ETF Trust
CategoryMid-Cap BlendLarge Value
IssueriSharesSPDR State Street Global Advisors
AUM29.84B30.46B
Avg. Return14.15%13.35%
Div. Yield0.99%1.61%
Expense Ratio0.19%0.16%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

IWR’s dividend yield is 0.62% lower than that of DIA (0.99% vs. 1.61%). Also, IWR yielded on average 0.80% more per year over the past decade (14.15% vs. 13.35%). The expense ratio of IWR is 0.03 percentage points higher than DIA’s (0.19% vs. 0.16%).

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Fund Composition

Industry Exposure

IWR vs. DIA - Industry Exposure

IWRDIA
Technology19.67%17.32%
Industrials14.54%16.7%
Energy3.48%2.0%
Communication Services4.64%4.42%
Utilities4.46%0.0%
Healthcare11.76%17.92%
Consumer Defensive3.82%6.3%
Real Estate8.31%0.0%
Financial Services11.64%20.68%
Consumer Cyclical13.59%13.44%
Basic Materials4.1%1.21%

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 SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

IWR is 2.35% more exposed to the Technology sector than DIA (19.67% vs 17.32%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 2.16% lower and 0.15% higher respectively (14.54% vs. 16.7% and 13.59% vs. 13.44%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 4.87% more of the fund’s holdings compared to DIA (12.38% vs. 7.51%).

Holdings

IWR - Holdings

IWR HoldingsWeight
IDEXX Laboratories Inc0.51%
DocuSign Inc0.51%
Twitter Inc0.48%
Chipotle Mexican Grill Inc0.47%
Roku Inc Class A0.44%
Marvell Technology Inc0.44%
DexCom Inc0.44%
Trane Technologies PLC0.43%
MSCI Inc0.43%
Carrier Global Corp Ordinary Shares0.43%

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%.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

IWRDIA
Mean Return1.171.13
R-squared91.5293.31
Std. Deviation15.6613.68
Alpha-2.8-0.94
Beta1.110.97
Sharpe Ratio0.860.94
Treynor Ratio11.7213.07

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

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Sharpe Ratio of 0.94 with a R-squared of 93.31 and a Standard Deviation of 13.68. Its Treynor Ratio is 13.07 while DIA’s Alpha is -0.94. Furthermore, the fund has a Beta of 0.97 and a Mean Return of 1.13.

IWR’s Mean Return is 0.04 points higher than that of DIA and its R-squared is 1.79 points lower. With a Standard Deviation of 15.66, IWR is slightly more volatile than DIA. The Alpha and Beta of IWR are 1.86 points lower and 0.14 points higher than DIA’s Alpha and Beta.

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Performance

Annual Returns

IWR vs. DIA - Annual Returns

YearIWRDIA
202016.91%9.63%
201930.31%25.09%
2018-9.13%-3.6%
201718.32%27.97%
201613.58%16.28%
2015-2.57%0.1%
201413.03%9.88%
201334.5%29.41%
201217.13%10.04%
2011-1.67%8.21%
201025.25%13.87%

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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

IWR vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWR$10,000$39,75114.15%
DIA$10,000$37,96513.35%

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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IWR’s CAGR is 0.80 percentage points higher than that of DIA and as a result, would have yielded $1,786 more on a $10,000 investment. Thus, IWR outperformed DIA by 0.80% annually.


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