The iShares Russell Mid-Cap ETF (IWR) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between IWR and IWP? And which fund is better?
The expense ratio of IWR is 0.05 percentage points lower than IWP’s (0.19% vs. 0.24%). IWR also has a lower exposure to the technology sector and a lower standard deviation. Overall, IWR has provided lower returns than IWP over the past ten years.
In this article, we’ll compare IWR vs. IWP. We’ll look at annual returns and fund composition, as well as at their portfolio growth and performance. Moreover, I’ll also discuss IWR’s and IWP’s industry exposure, holdings, and risk metrics and examine how these affect their overall returns.
Summary
| IWR | IWP | |
| Name | iShares Russell Mid-Cap ETF | iShares Russell Mid-Cap Growth ETF |
| Category | Mid-Cap Blend | Mid-Cap Growth |
| Issuer | iShares | iShares |
| AUM | 29.84B | 15.7B |
| Avg. Return | 14.15% | 16.75% |
| Div. Yield | 0.99% | 0.26% |
| Expense Ratio | 0.19% | 0.24% |
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 Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.
IWR’s dividend yield is 0.73% higher than that of IWP (0.99% vs. 0.26%). Also, IWR yielded on average 2.60% less per year over the past decade (14.15% vs. 16.75%). The expense ratio of IWR is 0.05 percentage points lower than IWP’s (0.19% vs. 0.24%).
Fund Composition
Industry Exposure
| IWR | IWP | |
| Technology | 19.67% | 33.88% |
| Industrials | 14.54% | 14.09% |
| Energy | 3.48% | 1.51% |
| Communication Services | 4.64% | 6.32% |
| Utilities | 4.46% | 0.16% |
| Healthcare | 11.76% | 16.79% |
| Consumer Defensive | 3.82% | 2.32% |
| Real Estate | 8.31% | 2.46% |
| Financial Services | 11.64% | 4.52% |
| Consumer Cyclical | 13.59% | 16.09% |
| Basic Materials | 4.1% | 1.86% |
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 Russell Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.
IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.
IWR is 14.21% less exposed to the Technology sector than IWP (19.67% vs 33.88%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 0.45% higher and 2.50% lower respectively (14.54% vs. 14.09% and 13.59% vs. 16.09%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 8.04% more of the fund’s holdings compared to IWP (12.38% vs. 4.34%).
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%.
| IWP Holdings | Weight |
| IDEXX Laboratories Inc | 1.3% |
| DocuSign Inc | 1.3% |
| Roku Inc Class A | 1.29% |
| Match Group Inc | 1.06% |
| Chipotle Mexican Grill Inc | 1.06% |
| Pinterest Inc | 1.05% |
| Veeva Systems Inc Class A | 1.04% |
| Palantir Technologies Inc Ordinary Shares – Class A | 1.04% |
| Lululemon Athletica Inc | 1.01% |
| DexCom Inc | 1.0% |
IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.
Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.
Risk Analysis
| IWR | IWP | |
| Mean Return | 1.17 | 1.27 |
| R-squared | 91.52 | 87.01 |
| Std. Deviation | 15.66 | 16.05 |
| Alpha | -2.8 | -1.03 |
| Beta | 1.11 | 1.1 |
| Sharpe Ratio | 0.86 | 0.91 |
| Treynor Ratio | 11.72 | 12.98 |
The iShares Russell Mid-Cap ETF (IWR) has a Sharpe Ratio of 0.86 with a R-squared of 91.52 and a Beta of 1.11. Its Treynor Ratio is 11.72 while IWR’s Standard Deviation is 15.66. Furthermore, the fund has a Mean Return of 1.17 and a Alpha of -2.8.
The iShares Russell Mid-Cap Growth ETF (IWP) has a R-squared of 87.01 with a Standard Deviation of 16.05 and a Alpha of -1.03. Its Mean Return is 1.27 while IWP’s Sharpe Ratio is 0.91. Furthermore, the fund has a Beta of 1.1 and a Treynor Ratio of 12.98.
IWR’s Mean Return is 0.10 points lower than that of IWP and its R-squared is 4.51 points higher. With a Standard Deviation of 15.66, IWR is slightly less volatile than IWP. The Alpha and Beta of IWR are 1.77 points lower and 0.01 points higher than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | IWR | IWP |
| 2020 | 16.91% | 35.29% |
| 2019 | 30.31% | 35.14% |
| 2018 | -9.13% | -4.95% |
| 2017 | 18.32% | 24.98% |
| 2016 | 13.58% | 7.15% |
| 2015 | -2.57% | -0.39% |
| 2014 | 13.03% | 11.68% |
| 2013 | 34.5% | 35.44% |
| 2012 | 17.13% | 15.62% |
| 2011 | -1.67% | -1.82% |
| 2010 | 25.25% | 26.1% |
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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWR | $10,000 | $39,751 | 14.15% |
| IWP | $10,000 | $50,191 | 16.75% |
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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.
IWR’s CAGR is 2.60 percentage points lower than that of IWP and as a result, would have yielded $10,440 less on a $10,000 investment. Thus, IWR performed worse than IWP by 2.60% annually.
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