The SPDR S&P 500 ETF Trust (SPY) and the iShares Russell Mid-Cap ETF (IWR) are both among the Top 100 ETFs. SPY is a SPDR State Street Global Advisors Large Blend fund and IWR is a iShares Mid-Cap Blend fund. So, what’s the difference between SPY and IWR? And which fund is better?
The expense ratio of SPY is 0.10 percentage points lower than IWR’s (0.09% vs. 0.19%). SPY also has a higher exposure to the technology sector and a lower standard deviation. Overall, SPY has provided higher returns than IWR over the past ten years.
In this article, we’ll compare SPY vs. IWR. We’ll look at performance and industry exposure, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss SPY’s and IWR’s holdings, annual returns, and risk metrics and examine how these affect their overall returns.
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Summary
| SPY | IWR | |
| Name | SPDR S&P 500 ETF Trust | iShares Russell Mid-Cap ETF |
| Category | Large Blend | Mid-Cap Blend |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 374.03B | 29.84B |
| Avg. Return | 14.41% | 14.15% |
| Div. Yield | 1.3% | 0.99% |
| Expense Ratio | 0.09% | 0.19% |
If you are also looking for SPY vs. EFA, You can check out all those details.
The SPDR S&P 500 ETF Trust (SPY) is a Large Blend fund that is issued by SPDR State Street Global Advisors. It currently has 374.03B total assets under management and has yielded an average annual return of 14.41% over the past 10 years. The fund has a dividend yield of 1.3% with an expense ratio of 0.09%.
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%.
SPY’s dividend yield is 0.31% higher than that of IWR (1.3% vs. 0.99%). Also, SPY yielded on average 0.26% more per year over the past decade (14.41% vs. 14.15%). The expense ratio of SPY is 0.10 percentage points lower than IWR’s (0.09% vs. 0.19%).
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Fund Composition
Industry Exposure
A pretty close comparison I have also cover is SPY vs. VXUS.
| SPY | IWR | |
| Technology | 24.22% | 19.67% |
| Industrials | 8.86% | 14.54% |
| Energy | 2.86% | 3.48% |
| Communication Services | 11.14% | 4.64% |
| Utilities | 2.45% | 4.46% |
| Healthcare | 13.09% | 11.76% |
| Consumer Defensive | 6.32% | 3.82% |
| Real Estate | 2.57% | 8.31% |
| Financial Services | 14.23% | 11.64% |
| Consumer Cyclical | 12.0% | 13.59% |
| Basic Materials | 2.27% | 4.1% |
The SPDR S&P 500 ETF Trust (SPY) has the most exposure to the Technology sector at 24.22%. This is followed by Financial Services and Healthcare at 14.23% and 13.09% respectively. Utilities (2.45%), Real Estate (2.57%), and Energy (2.86%) only make up 7.88% of the fund’s total assets.
SPY’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.0%, and 13.09%.
If you need another SPY comparison I have one SPY vs. DIA right here.
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%.
SPY is 4.55% more exposed to the Technology sector than IWR (24.22% vs 19.67%). SPY’s exposure to Financial Services and Healthcare stocks is 2.59% higher and 1.33% higher respectively (14.23% vs. 11.64% and 13.09% vs. 11.76%). In total, Utilities, Real Estate, and Energy also make up 8.37% less of the fund’s holdings compared to IWR (7.88% vs. 16.25%).
Holdings
| SPY Holdings | Weight |
| Apple Inc | 5.9% |
| Microsoft Corp | 5.6% |
| Amazon.com Inc | 4.05% |
| Facebook Inc A | 2.29% |
| Alphabet Inc A | 2.02% |
| Alphabet Inc Class C | 1.96% |
| Berkshire Hathaway Inc Class B | 1.45% |
| Tesla Inc | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.29% |
SPY’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.9%, 5.6%, 4.05%, 2.29%, and 2.02%.
The SPY vs. IUSB is another great set of index’s and ETF to look at.
Alphabet Inc Class C (1.96%), Berkshire Hathaway Inc Class B (1.45%), and Tesla Inc (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SPY’s holdings at 1.37% and 1.29%.
| 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%.
Risk Analysis
| SPY | IWR | |
| Mean Return | 1.23 | 1.17 |
| R-squared | 100 | 91.52 |
| Std. Deviation | 13.56 | 15.66 |
| Alpha | -0.09 | -2.8 |
| Beta | 1 | 1.11 |
| Sharpe Ratio | 1.04 | 0.86 |
| Treynor Ratio | 14.12 | 11.72 |
The SPDR S&P 500 ETF Trust (SPY) has a Beta of 1 with a Alpha of -0.09 and a Standard Deviation of 13.56. Its Mean Return is 1.23 while SPY’s Sharpe Ratio is 1.04. Furthermore, the fund has a R-squared of 100 and a Treynor Ratio of 14.12.
The iShares Russell Mid-Cap ETF (IWR) has a Standard Deviation of 15.66 with a Beta of 1.11 and a R-squared of 91.52. Its Mean Return is 1.17 while IWR’s Sharpe Ratio is 0.86. Furthermore, the fund has a Alpha of -2.8 and a Treynor Ratio of 11.72.
SPY’s Mean Return is 0.06 points higher than that of IWR and its R-squared is 8.48 points higher. With a Standard Deviation of 13.56, SPY is slightly less volatile than IWR. The Alpha and Beta of SPY are 2.71 points higher and 0.11 points lower than IWR’s Alpha and Beta.
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Performance
Annual Returns
| Year | SPY | IWR |
| 2020 | 18.25% | 16.91% |
| 2019 | 31.29% | 30.31% |
| 2018 | -4.45% | -9.13% |
| 2017 | 21.69% | 18.32% |
| 2016 | 11.8% | 13.58% |
| 2015 | 1.34% | -2.57% |
| 2014 | 13.53% | 13.03% |
| 2013 | 32.21% | 34.5% |
| 2012 | 15.84% | 17.13% |
| 2011 | 2.06% | -1.67% |
| 2010 | 14.93% | 25.25% |
SPY had its best year in 2013 with an annual return of 32.21%. SPY’s worst year over the past decade yielded -4.45% and occurred in 2018. In most years the SPDR S&P 500 ETF Trust provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.53%, 14.93%, and 15.84% respectively.
The year 2013 was the strongest year for IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| SPY | $10,000 | $41,712 | 14.41% |
| IWR | $10,000 | $39,751 | 14.15% |
A $10,000 investment in SPY would have resulted in a final balance of $41,712. This is a profit of $31,712 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.41%.
If you need more comparisons to read try SPY vs. MBB.
With a $10,000 investment in IWR, the end total would have been $39,751. This equates to a $29,751 profit over 11 years and a compound annual growth rate (CAGR) of 14.15%.
SPY’s CAGR is 0.26 percentage points higher than that of IWR and as a result, would have yielded $1,961 more on a $10,000 investment. Thus, SPY outperformed IWR by 0.26% annually.
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