The iShares Russell Mid-Cap ETF (IWR) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IWR and EFV? And which fund is better?
The expense ratio of IWR is 0.20 percentage points lower than EFV’s (0.19% vs. 0.39%). IWR also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWR has provided higher returns than EFV over the past ten years.
In this article, we’ll compare IWR vs. EFV. We’ll look at industry exposure and fund composition, as well as at their annual returns and portfolio growth. Moreover, I’ll also discuss IWR’s and EFV’s performance, risk metrics, and holdings and examine how these affect their overall returns.
|Name||iShares Russell Mid-Cap ETF||iShares MSCI EAFE Value ETF|
|Category||Mid-Cap Blend||Foreign Large Value|
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 EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
IWR’s dividend yield is 1.95% lower than that of EFV (0.99% vs. 2.94%). Also, IWR yielded on average 10.16% more per year over the past decade (14.15% vs. 3.99%). The expense ratio of IWR is 0.20 percentage points lower than EFV’s (0.19% vs. 0.39%).
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 EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
IWR is 16.69% more exposed to the Technology sector than EFV (19.67% vs 2.98%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 2.94% higher and 4.59% higher respectively (14.54% vs. 11.6% and 13.59% vs. 9.0%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 10.17% less of the fund’s holdings compared to EFV (12.38% vs. 22.55%).
|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%.
|Toyota Motor Corp||2.21%|
|Commonwealth Bank of Australia||1.59%|
|HSBC Holdings PLC||1.4%|
|Rio Tinto PLC||1.1%|
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
The iShares Russell Mid-Cap ETF (IWR) has a Sharpe Ratio of 0.86 with a Alpha of -2.8 and a Treynor Ratio of 11.72. Its R-squared is 91.52 while IWR’s Beta is 1.11. Furthermore, the fund has a Standard Deviation of 15.66 and a Mean Return of 1.17.
The iShares MSCI EAFE Value ETF (EFV) has a Alpha of -1.77 with a Treynor Ratio of 2.92 and a R-squared of 92.15. Its Sharpe Ratio is 0.26 while EFV’s Mean Return is 0.42. Furthermore, the fund has a Standard Deviation of 16.53 and a Beta of 1.05.
IWR’s Mean Return is 0.75 points higher than that of EFV and its R-squared is 0.63 points lower. With a Standard Deviation of 15.66, IWR is slightly less volatile than EFV. The Alpha and Beta of IWR are 1.03 points lower and 0.06 points higher than EFV’s Alpha and Beta.
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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% 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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.
IWR’s CAGR is 10.16 percentage points higher than that of EFV and as a result, would have yielded $25,617 more on a $10,000 investment. Thus, IWR outperformed EFV by 10.16% annually.
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.