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.

Summary

VTV DIA
Name Vanguard Value Index Fund ETF Shares SPDR Dow Jones Industrial Average ETF Trust
Category Large Value Large Value
Issuer Vanguard SPDR State Street Global Advisors
AUM 125.77B 30.46B
Avg. Return 12.07% 13.35%
Div. Yield 2.15% 1.61%
Expense Ratio 0.04% 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

VTV DIA
Technology 7.86% 17.32%
Industrials 12.61% 16.7%
Energy 5.59% 2.0%
Communication Services 5.49% 4.42%
Utilities 5.37% 0.0%
Healthcare 19.84% 17.92%
Consumer Defensive 10.72% 6.3%
Real Estate 3.01% 0.0%
Financial Services 22.81% 20.68%
Consumer Cyclical 3.79% 13.44%
Basic Materials 2.91% 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 Holdings Weight
Berkshire Hathaway Inc Class B 2.98%
JPMorgan Chase & Co 2.82%
Johnson & Johnson 2.6%
UnitedHealth Group Inc 2.27%
Procter & Gamble Co 1.98%
Bank of America Corp 1.91%
Exxon Mobil Corp 1.6%
Comcast Corp Class A 1.57%
Intel Corp 1.36%
Verizon Communications Inc 1.32%

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 Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

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

VTV DIA
Mean Return 1.05 1.13
R-squared 92.61 93.31
Std. Deviation 13.78 13.68
Alpha -1.92 -0.94
Beta 0.98 0.97
Sharpe Ratio 0.87 0.94
Treynor Ratio 11.94 13.07

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

Year VTV DIA
2020 2.23% 9.63%
2019 25.85% 25.09%
2018 -5.39% -3.6%
2017 17.12% 27.97%
2016 16.88% 16.28%
2015 -0.89% 0.1%
2014 13.19% 9.88%
2013 33.03% 29.41%
2012 15.19% 10.04%
2011 1.16% 8.21%
2010 14.45% 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

Fund Initial Balance Final Balance CAGR
VTV $10,000 $33,163 12.07%
DIA $10,000 $37,965 13.35%

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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