The iShares Russell Mid-Cap ETF (IWR) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and RSP is a Invesco Large Blend fund. So, what’s the difference between IWR and RSP? And which fund is better?
The expense ratio of IWR is 0.01 percentage points lower than RSP’s (0.19% vs. 0.2%). IWR also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than RSP over the past ten years.
In this article, we’ll compare IWR vs. RSP. We’ll look at performance and fund composition, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss IWR’s and RSP’s risk metrics, industry exposure, and holdings and examine how these affect their overall returns.
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Summary
| IWR | RSP | |
| Name | iShares Russell Mid-Cap ETF | Invesco S&P 500 Equal Weight ETF |
| Category | Mid-Cap Blend | Large Blend |
| Issuer | iShares | Invesco |
| AUM | 29.84B | 28.62B |
| Avg. Return | 14.15% | 13.79% |
| Div. Yield | 0.99% | 1.31% |
| Expense Ratio | 0.19% | 0.2% |
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 Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
IWR’s dividend yield is 0.32% lower than that of RSP (0.99% vs. 1.31%). Also, IWR yielded on average 0.36% more per year over the past decade (14.15% vs. 13.79%). The expense ratio of IWR is 0.01 percentage points lower than RSP’s (0.19% vs. 0.2%).
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Fund Composition
Industry Exposure
| IWR | RSP | |
| Technology | 19.67% | 14.73% |
| Industrials | 14.54% | 14.62% |
| Energy | 3.48% | 3.9% |
| Communication Services | 4.64% | 4.31% |
| Utilities | 4.46% | 5.58% |
| Healthcare | 11.76% | 13.69% |
| Consumer Defensive | 3.82% | 6.86% |
| Real Estate | 8.31% | 5.84% |
| Financial Services | 11.64% | 13.43% |
| Consumer Cyclical | 13.59% | 13.01% |
| Basic Materials | 4.1% | 4.04% |
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 Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.
RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.
IWR is 4.94% more exposed to the Technology sector than RSP (19.67% vs 14.73%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 0.08% lower and 0.58% higher respectively (14.54% vs. 14.62% and 13.59% vs. 13.01%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 4.10% less of the fund’s holdings compared to RSP (12.38% vs. 16.48%).
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%.
| RSP Holdings | Weight |
| Chipotle Mexican Grill Inc | 0.27% |
| Nike Inc Class B | 0.25% |
| MSCI Inc | 0.25% |
| Monolithic Power Systems Inc | 0.25% |
| Enphase Energy Inc | 0.25% |
| Advanced Micro Devices Inc | 0.25% |
| ResMed Inc | 0.24% |
| PerkinElmer Inc | 0.24% |
| IDEXX Laboratories Inc | 0.24% |
| Danaher Corp | 0.24% |
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
Risk Analysis
| IWR | RSP | |
| Mean Return | 1.17 | 1.19 |
| R-squared | 91.52 | 94.47 |
| Std. Deviation | 15.66 | 15.36 |
| Alpha | -2.8 | -2.45 |
| Beta | 1.11 | 1.1 |
| Sharpe Ratio | 0.86 | 0.89 |
| Treynor Ratio | 11.72 | 12.12 |
The iShares Russell Mid-Cap ETF (IWR) has a Alpha of -2.8 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 Sharpe Ratio of 0.86.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Beta of 1.1 with a Alpha of -2.45 and a Mean Return of 1.19. Its Treynor Ratio is 12.12 while RSP’s R-squared is 94.47. Furthermore, the fund has a Standard Deviation of 15.36 and a Sharpe Ratio of 0.89.
IWR’s Mean Return is 0.02 points lower than that of RSP and its R-squared is 2.95 points lower. With a Standard Deviation of 15.66, IWR is slightly more volatile than RSP. The Alpha and Beta of IWR are 0.35 points lower and 0.01 points higher than RSP’s Alpha and Beta.
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Performance
Annual Returns
| Year | IWR | RSP |
| 2020 | 16.91% | 12.75% |
| 2019 | 30.31% | 28.94% |
| 2018 | -9.13% | -7.77% |
| 2017 | 18.32% | 18.52% |
| 2016 | 13.58% | 14.34% |
| 2015 | -2.57% | -2.57% |
| 2014 | 13.03% | 14.02% |
| 2013 | 34.5% | 35.6% |
| 2012 | 17.13% | 17.04% |
| 2011 | -1.67% | -0.5% |
| 2010 | 25.25% | 21.3% |
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 RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IWR | $10,000 | $39,751 | 14.15% |
| RSP | $10,000 | $38,664 | 13.79% |
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 RSP, the end total would have been $38,664. This equates to a $28,664 profit over 11 years and a compound annual growth rate (CAGR) of 13.79%.
IWR’s CAGR is 0.36 percentage points higher than that of RSP and as a result, would have yielded $1,087 more on a $10,000 investment. Thus, IWR outperformed RSP by 0.36% annually.
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