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IWR vs. VT: What’s The Difference?

The iShares Russell Mid-Cap ETF (IWR) and the Vanguard Total World Stock Index Fund ETF Shares (VT) are both among the Top 100 ETFs. IWR is a iShares Mid-Cap Blend fund and VT is a Vanguard N/A fund. So, what’s the difference between IWR and VT? And which fund is better?

The expense ratio of IWR is 0.11 percentage points higher than VT’s (0.19% vs. 0.08%). IWR also has a higher exposure to the technology sector and a higher standard deviation. Overall, IWR has provided higher returns than VT over the past ten years.

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

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Summary

IWRVT
NameiShares Russell Mid-Cap ETFVanguard Total World Stock Index Fund ETF Shares
CategoryMid-Cap BlendN/A
IssueriSharesVanguard
AUM29.84B30.44B
Avg. Return14.15%10.42%
Div. Yield0.99%1.65%
Expense Ratio0.19%0.08%

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 Vanguard Total World Stock Index Fund ETF Shares (VT) is a N/A fund that is issued by Vanguard. It currently has 30.44B total assets under management and has yielded an average annual return of 10.42% over the past 10 years. The fund has a dividend yield of 1.65% with an expense ratio of 0.08%.

IWR’s dividend yield is 0.66% lower than that of VT (0.99% vs. 1.65%). Also, IWR yielded on average 3.74% more per year over the past decade (14.15% vs. 10.42%). The expense ratio of IWR is 0.11 percentage points higher than VT’s (0.19% vs. 0.08%).

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Fund Composition

Industry Exposure

IWR vs. VT - Industry Exposure

IWRVT
Technology19.67%19.63%
Industrials14.54%10.7%
Energy3.48%3.48%
Communication Services4.64%9.02%
Utilities4.46%2.6%
Healthcare11.76%11.58%
Consumer Defensive3.82%6.71%
Real Estate8.31%3.64%
Financial Services11.64%15.36%
Consumer Cyclical13.59%12.32%
Basic Materials4.1%4.97%

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 Vanguard Total World Stock Index Fund ETF Shares (VT) has the most exposure to the Technology sector at 19.63%. This is followed by Financial Services and Consumer Cyclical at 15.36% and 12.32% respectively. Energy (3.48%), Real Estate (3.64%), and Basic Materials (4.97%) only make up 12.09% of the fund’s total assets.

VT’s mid-section with moderate exposure is comprised of Consumer Defensive, Communication Services, Industrials, Healthcare, and Consumer Cyclical stocks at 6.71%, 9.02%, 10.7%, 11.58%, and 12.32%.

IWR is 0.04% more exposed to the Technology sector than VT (19.67% vs 19.63%). IWR’s exposure to Industrials and Consumer Cyclical stocks is 3.84% higher and 1.27% higher respectively (14.54% vs. 10.7% and 13.59% vs. 12.32%). In total, Consumer Defensive, Basic Materials, and Utilities also make up 1.90% less of the fund’s holdings compared to VT (12.38% vs. 14.28%).

Holdings

IWR - Holdings

IWR HoldingsWeight
IDEXX Laboratories Inc0.51%
DocuSign Inc0.51%
Twitter Inc0.48%
Chipotle Mexican Grill Inc0.47%
Roku Inc Class A0.44%
Marvell Technology Inc0.44%
DexCom Inc0.44%
Trane Technologies PLC0.43%
MSCI Inc0.43%
Carrier Global Corp Ordinary Shares0.43%

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%.

VT - Holdings

VT HoldingsWeight
Apple Inc2.85%
Microsoft Corp2.71%
Amazon.com Inc1.98%
Facebook Inc Class A1.1%
Alphabet Inc Class A0.97%
Alphabet Inc Class C0.95%
Tesla Inc0.7%
NVIDIA Corp0.64%
JPMorgan Chase & Co0.62%
Tencent Holdings Ltd0.6%

VT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 2.85%, 2.71%, 1.98%, 1.1%, and 0.97%.

Alphabet Inc Class C (0.95%), Tesla Inc (0.7%), and NVIDIA Corp (0.64%) have a slightly smaller but still significant weight. JPMorgan Chase & Co and Tencent Holdings Ltd are also represented in the VT’s holdings at 0.62% and 0.6%.

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Risk Analysis

IWRVT
Mean Return1.170.9
R-squared91.5299.35
Std. Deviation15.6614.19
Alpha-2.80.2
Beta1.111.01
Sharpe Ratio0.860.71
Treynor Ratio11.729.5

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

The Vanguard Total World Stock Index Fund ETF Shares (VT) has a Standard Deviation of 14.19 with a Beta of 1.01 and a Mean Return of 0.9. Its Sharpe Ratio is 0.71 while VT’s Alpha is 0.2. Furthermore, the fund has a Treynor Ratio of 9.5 and a R-squared of 99.35.

IWR’s Mean Return is 0.27 points higher than that of VT and its R-squared is 7.83 points lower. With a Standard Deviation of 15.66, IWR is slightly more volatile than VT. The Alpha and Beta of IWR are 3.00 points lower and 0.10 points higher than VT’s Alpha and Beta.

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Performance

Annual Returns

IWR vs. VT - Annual Returns

YearIWRVT
202016.91%16.74%
201930.31%26.8%
2018-9.13%-9.67%
201718.32%24.19%
201613.58%8.77%
2015-2.57%-1.88%
201413.03%3.97%
201334.5%22.98%
201217.13%17.33%
2011-1.67%-7.71%
201025.25%13.05%

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 VT, returning 26.8% on an annual basis. The poorest year for VT in the last ten years was 2018, with a yield of -9.67%. Most years the Vanguard Total World Stock Index Fund ETF Shares has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 8.77%, 13.05%, and 16.74% respectively.

Portfolio Growth

IWR vs. VT - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IWR$10,000$39,75114.15%
VT$10,000$27,73910.42%

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 VT, the end total would have been $27,739. This equates to a $17,739 profit over 11 years and a compound annual growth rate (CAGR) of 10.42%.

IWR’s CAGR is 3.74 percentage points higher than that of VT and as a result, would have yielded $12,012 more on a $10,000 investment. Thus, IWR outperformed VT by 3.74% annually.


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