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Is IWF Good?

IWF is about growth, which may inply that the long term return may be better than value stocks with higher volitility.

Downside Risk Comparison with SPY

Invested at the peak in 2007 on 10/9, IWF's risk was about the same with SPY but with much higher return later on.

Invested at the peak before COVID crisis of 2020 on 2/19, IWF's risk was about the same with SPY, but is more volatile later on.

Invested right before Fed's rate hikes in 2015 on 12/14, IWF's risk was about the same with SPY.



Sharpe Ratio Compared with SPY

IWF does not seem to a better Shape ratio than SPY.


What are the chaces of IWF beating SPY?

Randomly select an investment span of 252 days between 2000-05-26 and 2022-06-17. We see IWF beats SPY by 0.848% in annual return and has a 59.9% chance of beating SPY.


Randomly select an investment span of 1000 days between 2000-05-26 and 2022-06-17. We see IWF beats SPY by 1.677% in annual return and has a 72.5% chance of beating SPY.

Randomly select an investment span of 3000 days between 2000-05-26 and 2022-06-17. We see IWF beats SPY by 4.525% in annual return and has a 82.4% chance of beating SPY.

Conclusion

  • IWF has a higher volitility than SPY and does not a signicant better Sharpe ratio.
  • The longer you invest in IWF, the better chance you have of betting SPY. This could be cause of the nature of growth stock. Beause IWF pays less dividends and is more efficient in reinvesting in the stock market than SPY.

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