MDY vs. ACWI: What’s The Difference?

The SPDR S&P MIDCAP 400 ETF Trust (MDY) and the iShares MSCI ACWI ETF (ACWI) are both among the Top 100 ETFs. MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund and ACWI is a iShares N/A fund. So, what’s the difference between MDY and ACWI? And which fund is better?

The expense ratio of MDY is 0.09 percentage points lower than ACWI’s (0.23% vs. 0.32%). MDY also has a higher exposure to the industrials sector and a higher standard deviation. Overall, MDY has provided higher returns than ACWI over the past 11 years.

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

Summary

MDY ACWI
Name SPDR S&P MIDCAP 400 ETF Trust iShares MSCI ACWI ETF
Category Mid-Cap Blend N/A
Issuer SPDR State Street Global Advisors iShares
AUM 21.31B 16.85B
Avg. Return 13.29% 10.21%
Div. Yield 0.94% 1.39%
Expense Ratio 0.23% 0.32%

The SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.

The iShares MSCI ACWI ETF (ACWI) is a N/A fund that is issued by iShares. It currently has 16.85B total assets under management and has yielded an average annual return of 10.21% over the past 10 years. The fund has a dividend yield of 1.39% with an expense ratio of 0.32%.

MDY’s dividend yield is 0.45% lower than that of ACWI (0.94% vs. 1.39%). Also, MDY yielded on average 3.07% more per year over the past decade (13.29% vs. 10.21%). The expense ratio of MDY is 0.09 percentage points lower than ACWI’s (0.23% vs. 0.32%).

Fund Composition

Industry Exposure

MDY vs. ACWI - Industry Exposure

MDY ACWI
Technology 14.74% 20.41%
Industrials 17.88% 9.65%
Energy 2.52% 3.48%
Communication Services 1.63% 9.87%
Utilities 2.84% 2.61%
Healthcare 11.17% 11.74%
Consumer Defensive 4.2% 7.15%
Real Estate 9.66% 2.75%
Financial Services 15.2% 15.58%
Consumer Cyclical 14.89% 12.01%
Basic Materials 5.27% 4.73%

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has the most exposure to the Industrials sector at 17.88%. This is followed by Financial Services and Consumer Cyclical at 15.2% and 14.89% respectively. Energy (2.52%), Utilities (2.84%), and Consumer Defensive (4.2%) only make up 9.56% of the fund’s total assets.

MDY’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Consumer Cyclical stocks at 5.27%, 9.66%, 11.17%, 14.74%, and 14.89%.

The iShares MSCI ACWI ETF (ACWI) has the most exposure to the Technology sector at 20.41%. This is followed by Financial Services and Consumer Cyclical at 15.58% and 12.01% respectively. Real Estate (2.75%), Energy (3.48%), and Basic Materials (4.73%) only make up 10.96% of the fund’s total assets.

ACWI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Healthcare, and Consumer Cyclical stocks at 7.15%, 9.65%, 9.87%, 11.74%, and 12.01%.

MDY is 8.23% more exposed to the Industrials sector than ACWI (17.88% vs 9.65%). MDY’s exposure to Financial Services and Consumer Cyclical stocks is 0.38% lower and 2.88% higher respectively (15.2% vs. 15.58% and 14.89% vs. 12.01%). In total, Energy, Utilities, and Consumer Defensive also make up 3.68% less of the fund’s holdings compared to ACWI (9.56% vs. 13.24%).

Holdings

MDY - Holdings

MDY Holdings Weight
Bio-Techne Corp 0.75%
Molina Healthcare Inc 0.63%
Cognex Corp 0.63%
Fair Isaac Corp 0.62%
XPO Logistics Inc 0.61%
SolarEdge Technologies Inc 0.61%
Signature Bank 0.6%
Graco Inc 0.55%
Camden Property Trust 0.55%
FactSet Research Systems Inc 0.54%

MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.

SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.

ACWI - Holdings

ACWI Holdings Weight
Apple Inc 3.44%
Microsoft Corp 2.91%
Amazon.com Inc 2.21%
Facebook Inc A 1.25%
Alphabet Inc Class C 1.12%
Alphabet Inc A 1.09%
Taiwan Semiconductor Manufacturing Co Ltd 0.79%
Tesla Inc 0.78%
NVIDIA Corp 0.74%
JPMorgan Chase & Co 0.71%

ACWI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc Class C at 3.44%, 2.91%, 2.21%, 1.25%, and 1.12%.

Alphabet Inc A (1.09%), Taiwan Semiconductor Manufacturing Co Ltd (0.79%), and Tesla Inc (0.78%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ACWI’s holdings at 0.74% and 0.71%.

Risk Analysis

MDY ACWI
Mean Return 1.08 0.89
R-squared 86.66 99.96
Std. Deviation 16.83 14.05
Alpha -4.1 0.15
Beta 1.15 1
Sharpe Ratio 0.73 0.71
Treynor Ratio 9.97 9.45

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Beta of 1.15 with a R-squared of 86.66 and a Alpha of -4.1. Its Mean Return is 1.08 while MDY’s Treynor Ratio is 9.97. Furthermore, the fund has a Sharpe Ratio of 0.73 and a Standard Deviation of 16.83.

The iShares MSCI ACWI ETF (ACWI) has a Sharpe Ratio of 0.71 with a Mean Return of 0.89 and a R-squared of 99.96. Its Standard Deviation is 14.05 while ACWI’s Alpha is 0.15. Furthermore, the fund has a Beta of 1 and a Treynor Ratio of 9.45.

MDY’s Mean Return is 0.19 points higher than that of ACWI and its R-squared is 13.30 points lower. With a Standard Deviation of 16.83, MDY is slightly more volatile than ACWI. The Alpha and Beta of MDY are 4.25 points lower and 0.15 points higher than ACWI’s Alpha and Beta.

Performance

Annual Returns

MDY vs. ACWI - Annual Returns

Year MDY ACWI
2020 13.51% 16.38%
2019 25.86% 26.7%
2018 -11.28% -9.15%
2017 15.89% 24.35%
2016 20.33% 8.22%
2015 -2.4% -2.39%
2014 9.42% 4.64%
2013 33.08% 22.91%
2012 17.58% 15.99%
2011 -1.99% -7.6%
2010 26.17% 12.31%

MDY had its best year in 2013 with an annual return of 33.08%. MDY’s worst year over the past decade yielded -11.28% and occurred in 2018. In most years the SPDR S&P MIDCAP 400 ETF Trust provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 13.51%, 15.89%, and 17.58% respectively.

The year 2019 was the strongest year for ACWI, returning 26.7% on an annual basis. The poorest year for ACWI in the last ten years was 2018, with a yield of -9.15%. Most years the iShares MSCI ACWI ETF has given investors modest returns, such as in 2016, 2010, and 2012, when gains were 8.22%, 12.31%, and 15.99% respectively.

Portfolio Growth

MDY vs. ACWI - Portfolio Growth

Fund Initial Balance Final Balance CAGR
MDY $10,000 $36,524 13.29%
ACWI $10,000 $27,241 10.21%

A $10,000 investment in MDY would have resulted in a final balance of $36,524. This is a profit of $26,524 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.29%.

With a $10,000 investment in ACWI, the end total would have been $27,241. This equates to a $17,241 profit over 11 years and a compound annual growth rate (CAGR) of 10.21%.

MDY’s CAGR is 3.07 percentage points higher than that of ACWI and as a result, would have yielded $9,283 more on a $10,000 investment. Thus, MDY outperformed ACWI by 3.07% annually.


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