IWR vs. IVE: What’s The Difference?

The iShares Russell Mid-Cap ETF (IWR) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between IWR and IVE? And which fund is better?

The expense ratio of IWR is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%). IWR also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than IVE over the past ten years.

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

Summary

IWR IVE
Name iShares Russell Mid-Cap ETF iShares S&P 500 Value ETF
Category Mid-Cap Blend Large Value
Issuer iShares iShares
AUM 29.84B 22.4B
Avg. Return 14.15% 11.68%
Div. Yield 0.99% 1.88%
Expense Ratio 0.19% 0.18%

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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

IWR’s dividend yield is 0.89% lower than that of IVE (0.99% vs. 1.88%). Also, IWR yielded on average 2.47% more per year over the past decade (14.15% vs. 11.68%). The expense ratio of IWR is 0.01 percentage points higher than IVE’s (0.19% vs. 0.18%).

Fund Composition

Industry Exposure

IWR vs. IVE - Industry Exposure

IWR IVE
Technology 19.67% 9.41%
Industrials 14.54% 12.19%
Energy 3.48% 5.43%
Communication Services 4.64% 6.4%
Utilities 4.46% 4.82%
Healthcare 11.76% 15.4%
Consumer Defensive 3.82% 9.23%
Real Estate 8.31% 4.38%
Financial Services 11.64% 22.06%
Consumer Cyclical 13.59% 7.68%
Basic Materials 4.1% 2.99%

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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

IWR is 10.26% more exposed to the Technology sector than IVE (19.67% vs 9.41%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 2.35% higher and 5.91% higher respectively (14.54% vs. 12.19% and 13.59% vs. 7.68%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 4.66% less of the fund’s holdings compared to IVE (12.38% vs. 17.04%).

Holdings

IWR - Holdings

IWR Holdings Weight
IDEXX Laboratories Inc 0.51%
DocuSign Inc 0.51%
Twitter Inc 0.48%
Chipotle Mexican Grill Inc 0.47%
Roku Inc Class A 0.44%
Marvell Technology Inc 0.44%
DexCom Inc 0.44%
Trane Technologies PLC 0.43%
MSCI Inc 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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

Risk Analysis

IWR IVE
Mean Return 1.17 1.05
R-squared 91.52 92.08
Std. Deviation 15.66 14.3
Alpha -2.8 -2.9
Beta 1.11 1.01
Sharpe Ratio 0.86 0.83
Treynor Ratio 11.72 11.41

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

The iShares S&P 500 Value ETF (IVE) has a Beta of 1.01 with a Standard Deviation of 14.3 and a Sharpe Ratio of 0.83. Its Alpha is -2.9 while IVE’s Treynor Ratio is 11.41. Furthermore, the fund has a R-squared of 92.08 and a Mean Return of 1.05.

IWR’s Mean Return is 0.12 points higher than that of IVE and its R-squared is 0.56 points lower. With a Standard Deviation of 15.66, IWR is slightly more volatile than IVE. The Alpha and Beta of IWR are 0.10 points higher and 0.10 points higher than IVE’s Alpha and Beta.

Performance

Annual Returns

IWR vs. IVE - Annual Returns

Year IWR IVE
2020 16.91% 1.24%
2019 30.31% 31.71%
2018 -9.13% -9.09%
2017 18.32% 15.19%
2016 13.58% 17.17%
2015 -2.57% -3.24%
2014 13.03% 12.14%
2013 34.5% 31.69%
2012 17.13% 17.45%
2011 -1.67% -0.63%
2010 25.25% 14.9%

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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

IWR vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IWR $10,000 $39,751 14.15%
IVE $10,000 $31,350 11.68%

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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.

IWR’s CAGR is 2.47 percentage points higher than that of IVE and as a result, would have yielded $8,401 more on a $10,000 investment. Thus, IWR outperformed IVE by 2.47% annually.


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