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VTV vs. DIA: What’s The Difference?

The Vanguard Value Index Fund ETF Shares (VTV) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. VTV is a Vanguard Large Value fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between VTV and DIA? And which fund is better?

The expense ratio of VTV is 0.12 percentage points lower than DIA’s (0.04% vs. 0.16%). VTV also has a higher exposure to the financial services sector and a higher standard deviation. Overall, VTV has provided lower returns than DIA over the past ten years.

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

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Summary

VTVDIA
NameVanguard Value Index Fund ETF SharesSPDR Dow Jones Industrial Average ETF Trust
CategoryLarge ValueLarge Value
IssuerVanguardSPDR State Street Global Advisors
AUM125.77B30.46B
Avg. Return12.07%13.35%
Div. Yield2.15%1.61%
Expense Ratio0.04%0.16%

The Vanguard Value Index Fund ETF Shares (VTV) is a Large Value fund that is issued by Vanguard. It currently has 125.77B total assets under management and has yielded an average annual return of 12.07% over the past 10 years. The fund has a dividend yield of 2.15% with an expense ratio of 0.04%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

VTV’s dividend yield is 0.54% higher than that of DIA (2.15% vs. 1.61%). Also, VTV yielded on average 1.28% less per year over the past decade (12.07% vs. 13.35%). The expense ratio of VTV is 0.12 percentage points lower than DIA’s (0.04% vs. 0.16%).

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Fund Composition

Industry Exposure

VTV vs. DIA - Industry Exposure

VTVDIA
Technology7.86%17.32%
Industrials12.61%16.7%
Energy5.59%2.0%
Communication Services5.49%4.42%
Utilities5.37%0.0%
Healthcare19.84%17.92%
Consumer Defensive10.72%6.3%
Real Estate3.01%0.0%
Financial Services22.81%20.68%
Consumer Cyclical3.79%13.44%
Basic Materials2.91%1.21%

The Vanguard Value Index Fund ETF Shares (VTV) has the most exposure to the Financial Services sector at 22.81%. This is followed by Healthcare and Industrials at 19.84% and 12.61% respectively. Real Estate (3.01%), Consumer Cyclical (3.79%), and Utilities (5.37%) only make up 12.17% of the fund’s total assets.

VTV’s mid-section with moderate exposure is comprised of Communication Services, Energy, Technology, Consumer Defensive, and Industrials stocks at 5.49%, 5.59%, 7.86%, 10.72%, and 12.61%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

VTV is 2.13% more exposed to the Financial Services sector than DIA (22.81% vs 20.68%). VTV’s exposure to Healthcare and Industrials stocks is 1.92% higher and 4.09% lower respectively (19.84% vs. 17.92% and 12.61% vs. 16.7%). In total, Real Estate, Consumer Cyclical, and Utilities also make up 1.27% less of the fund’s holdings compared to DIA (12.17% vs. 13.44%).

Holdings

VTV - Holdings

VTV HoldingsWeight
Berkshire Hathaway Inc Class B2.98%
JPMorgan Chase & Co2.82%
Johnson & Johnson2.6%
UnitedHealth Group Inc2.27%
Procter & Gamble Co1.98%
Bank of America Corp1.91%
Exxon Mobil Corp1.6%
Comcast Corp Class A1.57%
Intel Corp1.36%
Verizon Communications Inc1.32%

VTV’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.98%, 2.82%, 2.6%, 2.27%, and 1.98%.

Bank of America Corp (1.91%), Exxon Mobil Corp (1.6%), and Comcast Corp Class A (1.57%) have a slightly smaller but still significant weight. Intel Corp and Verizon Communications Inc are also represented in the VTV’s holdings at 1.36% and 1.32%.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

VTVDIA
Mean Return1.051.13
R-squared92.6193.31
Std. Deviation13.7813.68
Alpha-1.92-0.94
Beta0.980.97
Sharpe Ratio0.870.94
Treynor Ratio11.9413.07

The Vanguard Value Index Fund ETF Shares (VTV) has a R-squared of 92.61 with a Alpha of -1.92 and a Beta of 0.98. Its Mean Return is 1.05 while VTV’s Treynor Ratio is 11.94. Furthermore, the fund has a Sharpe Ratio of 0.87 and a Standard Deviation of 13.78.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Beta of 0.97 with a Treynor Ratio of 13.07 and a Standard Deviation of 13.68. Its R-squared is 93.31 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Alpha of -0.94 and a Sharpe Ratio of 0.94.

VTV’s Mean Return is 0.08 points lower than that of DIA and its R-squared is 0.70 points lower. With a Standard Deviation of 13.78, VTV is slightly more volatile than DIA. The Alpha and Beta of VTV are 0.98 points lower and 0.01 points higher than DIA’s Alpha and Beta.

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Performance

Annual Returns

VTV vs. DIA - Annual Returns

YearVTVDIA
20202.23%9.63%
201925.85%25.09%
2018-5.39%-3.6%
201717.12%27.97%
201616.88%16.28%
2015-0.89%0.1%
201413.19%9.88%
201333.03%29.41%
201215.19%10.04%
20111.16%8.21%
201014.45%13.87%

VTV had its best year in 2013 with an annual return of 33.03%. VTV’s worst year over the past decade yielded -5.39% and occurred in 2018. In most years the Vanguard Value Index Fund ETF Shares provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.19%, 14.45%, and 15.19% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

VTV vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VTV$10,000$33,16312.07%
DIA$10,000$37,96513.35%

A $10,000 investment in VTV would have resulted in a final balance of $33,163. This is a profit of $23,163 over 11 years and amounts to a compound annual growth rate (CAGR) of 12.07%.

With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

VTV’s CAGR is 1.28 percentage points lower than that of DIA and as a result, would have yielded $4,802 less on a $10,000 investment. Thus, VTV performed worse than DIA by 1.28% annually.


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