ITB vs. VTWO
Compare and contrast key facts about iShares U.S. Home Construction ETF (ITB) and Vanguard Russell 2000 ETF (VTWO).
ITB and VTWO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ITB is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Home Construction Index. It was launched on May 1, 2006. VTWO is a passively managed fund by Vanguard that tracks the performance of the Russell 2000 Index. It was launched on Sep 20, 2010. Both ITB and VTWO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ITB or VTWO.
Key characteristics
| ITB | VTWO | |
|---|---|---|
| YTD Return | 6.24% | 2.36% |
| 1Y Return | 42.89% | 19.62% |
| 3Y Return (Ann) | 12.67% | -1.70% |
| 5Y Return (Ann) | 24.03% | 7.16% |
| 10Y Return (Ann) | 17.26% | 7.98% |
| Sharpe Ratio | 1.75 | 0.98 |
| Daily Std Dev | 25.00% | 19.66% |
| Max Drawdown | -86.53% | -41.19% |
| Current Drawdown | -6.76% | -12.22% |
Correlation
The correlation between ITB and VTWO is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
ITB vs. VTWO - Performance Comparison
In the year-to-date period, ITB achieves a 6.24% return, which is significantly higher than VTWO's 2.36% return. Over the past 10 years, ITB has outperformed VTWO with an annualized return of 17.26%, while VTWO has yielded a comparatively lower 7.98% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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ITB vs. VTWO - Expense Ratio Comparison
ITB has a 0.42% expense ratio, which is higher than VTWO's 0.10% expense ratio.
Risk-Adjusted Performance
ITB vs. VTWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) and Vanguard Russell 2000 ETF (VTWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
ITB vs. VTWO - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 0.46%, less than VTWO's 1.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% | 0.34% | 0.12% |
VTWO Vanguard Russell 2000 ETF | 1.36% | 1.45% | 1.48% | 1.13% | 0.92% | 1.36% | 1.41% | 1.18% | 1.27% | 1.23% | 1.12% | 1.04% |
Drawdowns
ITB vs. VTWO - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for ITB and VTWO. For additional features, visit the drawdowns tool.
Volatility
ITB vs. VTWO - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 7.55% compared to Vanguard Russell 2000 ETF (VTWO) at 5.73%. This indicates that ITB's price experiences larger fluctuations and is considered to be riskier than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.