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.
|Name||iShares Russell Mid-Cap ETF||iShares S&P 500 Value ETF|
|Category||Mid-Cap Blend||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 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%).
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%).
|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%.
|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%|
|Cisco Systems Inc||1.35%|
|Verizon Communications Inc||1.33%|
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%.
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.
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.
|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 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.
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.