The iShares Russell Mid-Cap ETF (IWR) and the SPDR S&P Dividend ETF (SDY) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and SDY is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IWR and SDY? And which fund is better?
The expense ratio of IWR is 0.16 percentage points lower than SDY’s (0.19% vs. 0.35%). IWR also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than SDY over the past ten years.
In this article, we’ll compare IWR vs. SDY. We’ll look at performance and holdings, as well as at their risk metrics and industry exposure. Moreover, I’ll also discuss IWR’s and SDY’s annual returns, fund composition, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Russell Mid-Cap ETF||SPDR S&P Dividend ETF|
|Category||Mid-Cap Blend||Large Value|
|Issuer||iShares||SPDR State Street Global Advisors|
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 SPDR S&P Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.
IWR’s dividend yield is 1.66% lower than that of SDY (0.99% vs. 2.65%). Also, IWR yielded on average 1.71% more per year over the past decade (14.15% vs. 12.44%). The expense ratio of IWR is 0.16 percentage points lower than SDY’s (0.19% vs. 0.35%).
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 SPDR S&P Dividend ETF (SDY) has the most exposure to the Financial Services sector at 16.32%. This is followed by Industrials and Consumer Defensive at 15.89% and 14.01% respectively. Communication Services (4.64%), Energy (5.95%), and Basic Materials (6.45%) only make up 17.04% of the fund’s total assets.
SDY’s mid-section with moderate exposure is comprised of Real Estate, Healthcare, Consumer Cyclical, Utilities, and Consumer Defensive stocks at 6.57%, 7.35%, 8.68%, 12.14%, and 14.01%.
IWR is 17.67% more exposed to the Technology sector than SDY (19.67% vs 2.0%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 1.35% lower and 4.91% higher respectively (14.54% vs. 15.89% and 13.59% vs. 8.68%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 20.22% less of the fund’s holdings compared to SDY (12.38% vs. 32.60%).
|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%.
|Exxon Mobil Corp||2.81%|
|South Jersey Industries Inc||2.22%|
|International Business Machines Corp||2.0%|
|National Retail Properties Inc||1.86%|
|Federal Realty Investment Trust||1.77%|
|Realty Income Corp||1.7%|
|Old Republic International Corp||1.65%|
SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.
AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.
The iShares Russell Mid-Cap ETF (IWR) has a Sharpe Ratio of 0.86 with a Beta of 1.11 and a Treynor Ratio of 11.72. Its R-squared is 91.52 while IWR’s Alpha is -2.8. Furthermore, the fund has a Standard Deviation of 15.66 and a Mean Return of 1.17.
The SPDR S&P Dividend ETF (SDY) has a Beta of 0.87 with a R-squared of 83.62 and a Treynor Ratio of 13.94. Its Standard Deviation is 12.9 while SDY’s Sharpe Ratio is 0.95. Furthermore, the fund has a Mean Return of 1.07 and a Alpha of -0.1.
IWR’s Mean Return is 0.10 points higher than that of SDY and its R-squared is 7.90 points higher. With a Standard Deviation of 15.66, IWR is slightly more volatile than SDY. The Alpha and Beta of IWR are 2.70 points lower and 0.24 points higher than SDY’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 SDY, returning 30.09% on an annual basis. The poorest year for SDY in the last ten years was 2018, with a yield of -2.73%. Most years the SPDR S&P Dividend ETF has given investors modest returns, such as in 2012, 2014, and 2017, when gains were 11.51%, 13.8%, and 15.84% 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 SDY, the end total would have been $34,806. This equates to a $24,806 profit over 11 years and a compound annual growth rate (CAGR) of 12.44%.
IWR’s CAGR is 1.71 percentage points higher than that of SDY and as a result, would have yielded $4,945 more on a $10,000 investment. Thus, IWR outperformed SDY by 1.71% 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.