The iShares Core S&P Mid-Cap ETF (IJH) and the iShares MSCI ACWI ETF (ACWI) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and ACWI is a iShares N/A fund. So, what’s the difference between IJH and ACWI? And which fund is better?
The expense ratio of IJH is 0.27 percentage points lower than ACWI’s (0.05% vs. 0.32%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than ACWI over the past ten years.
In this article, we’ll compare IJH vs. ACWI. We’ll look at annual returns and portfolio growth, as well as at their holdings and risk metrics. Moreover, I’ll also discuss IJH’s and ACWI’s fund composition, industry exposure, and performance and examine how these affect their overall returns.
Summary
| IJH | ACWI | |
| Name | iShares Core S&P Mid-Cap ETF | iShares MSCI ACWI ETF |
| Category | Mid-Cap Blend | N/A |
| Issuer | iShares | iShares |
| AUM | 63.4B | 16.85B |
| Avg. Return | 13.50% | 10.21% |
| Div. Yield | 1.07% | 1.39% |
| Expense Ratio | 0.05% | 0.32% |
The iShares Core S&P Mid-Cap ETF (IJH) is a Mid-Cap Blend fund that is issued by iShares. It currently has 63.4B total assets under management and has yielded an average annual return of 13.50% over the past 10 years. The fund has a dividend yield of 1.07% with an expense ratio of 0.05%.
The iShares MSCI ACWI ETF (ACWI) is a N/A fund that is issued by iShares. It currently has 16.85B total assets under management and has yielded an average annual return of 10.21% over the past 10 years. The fund has a dividend yield of 1.39% with an expense ratio of 0.32%.
IJH’s dividend yield is 0.32% lower than that of ACWI (1.07% vs. 1.39%). Also, IJH yielded on average 3.28% more per year over the past decade (13.50% vs. 10.21%). The expense ratio of IJH is 0.27 percentage points lower than ACWI’s (0.05% vs. 0.32%).
Fund Composition
Industry Exposure
| IJH | ACWI | |
| Technology | 14.81% | 20.41% |
| Industrials | 18.09% | 9.65% |
| Energy | 2.5% | 3.48% |
| Communication Services | 1.57% | 9.87% |
| Utilities | 2.9% | 2.61% |
| Healthcare | 10.89% | 11.74% |
| Consumer Defensive | 4.02% | 7.15% |
| Real Estate | 10.04% | 2.75% |
| Financial Services | 14.85% | 15.58% |
| Consumer Cyclical | 14.91% | 12.01% |
| Basic Materials | 5.42% | 4.73% |
The iShares Core S&P Mid-Cap ETF (IJH) has the most exposure to the Industrials sector at 18.09%. This is followed by Consumer Cyclical and Financial Services at 14.91% and 14.85% respectively. Energy (2.5%), Utilities (2.9%), and Consumer Defensive (4.02%) only make up 9.42% of the fund’s total assets.
IJH’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Financial Services stocks at 5.42%, 10.04%, 10.89%, 14.81%, and 14.85%.
The iShares MSCI ACWI ETF (ACWI) has the most exposure to the Technology sector at 20.41%. This is followed by Financial Services and Consumer Cyclical at 15.58% and 12.01% respectively. Real Estate (2.75%), Energy (3.48%), and Basic Materials (4.73%) only make up 10.96% of the fund’s total assets.
ACWI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Healthcare, and Consumer Cyclical stocks at 7.15%, 9.65%, 9.87%, 11.74%, and 12.01%.
IJH is 8.44% more exposed to the Industrials sector than ACWI (18.09% vs 9.65%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 2.90% higher and 0.73% lower respectively (14.91% vs. 12.01% and 14.85% vs. 15.58%). In total, Energy, Utilities, and Consumer Defensive also make up 3.82% less of the fund’s holdings compared to ACWI (9.42% vs. 13.24%).
Holdings
| IJH Holdings | Weight |
| Bio-Techne Corp | 0.8% |
| Molina Healthcare Inc | 0.68% |
| Cognex Corp | 0.68% |
| Fair Isaac Corp | 0.64% |
| Camden Property Trust | 0.62% |
| XPO Logistics Inc | 0.6% |
| Masimo Corp | 0.59% |
| SolarEdge Technologies Inc | 0.57% |
| FactSet Research Systems Inc | 0.57% |
| Graco Inc | 0.56% |
IJH’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and Camden Property Trust at 0.8%, 0.68%, 0.68%, 0.64%, and 0.62%.
XPO Logistics Inc (0.6%), Masimo Corp (0.59%), and SolarEdge Technologies Inc (0.57%) have a slightly smaller but still significant weight. FactSet Research Systems Inc and Graco Inc are also represented in the IJH’s holdings at 0.57% and 0.56%.
| ACWI Holdings | Weight |
| Apple Inc | 3.44% |
| Microsoft Corp | 2.91% |
| Amazon.com Inc | 2.21% |
| Facebook Inc A | 1.25% |
| Alphabet Inc Class C | 1.12% |
| Alphabet Inc A | 1.09% |
| Taiwan Semiconductor Manufacturing Co Ltd | 0.79% |
| Tesla Inc | 0.78% |
| NVIDIA Corp | 0.74% |
| JPMorgan Chase & Co | 0.71% |
ACWI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc Class C at 3.44%, 2.91%, 2.21%, 1.25%, and 1.12%.
Alphabet Inc A (1.09%), Taiwan Semiconductor Manufacturing Co Ltd (0.79%), and Tesla Inc (0.78%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ACWI’s holdings at 0.74% and 0.71%.
Risk Analysis
| IJH | ACWI | |
| Mean Return | 1.13 | 0.89 |
| R-squared | 86.39 | 99.96 |
| Std. Deviation | 16.8 | 14.05 |
| Alpha | -4.01 | 0.15 |
| Beta | 1.15 | 1 |
| Sharpe Ratio | 0.77 | 0.71 |
| Treynor Ratio | 10.55 | 9.45 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Standard Deviation of 16.8 with a Sharpe Ratio of 0.77 and a Alpha of -4.01. Its R-squared is 86.39 while IJH’s Beta is 1.15. Furthermore, the fund has a Treynor Ratio of 10.55 and a Mean Return of 1.13.
The iShares MSCI ACWI ETF (ACWI) has a Sharpe Ratio of 0.71 with a Mean Return of 0.89 and a Alpha of 0.15. Its R-squared is 99.96 while ACWI’s Treynor Ratio is 9.45. Furthermore, the fund has a Standard Deviation of 14.05 and a Beta of 1.
IJH’s Mean Return is 0.24 points higher than that of ACWI and its R-squared is 13.57 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than ACWI. The Alpha and Beta of IJH are 4.16 points lower and 0.15 points higher than ACWI’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | ACWI |
| 2020 | 13.61% | 16.38% |
| 2019 | 26.14% | 26.7% |
| 2018 | -11.14% | -9.15% |
| 2017 | 16.19% | 24.35% |
| 2016 | 20.63% | 8.22% |
| 2015 | -2.23% | -2.39% |
| 2014 | 9.64% | 4.64% |
| 2013 | 33.4% | 22.91% |
| 2012 | 17.76% | 15.99% |
| 2011 | -1.89% | -7.6% |
| 2010 | 26.38% | 12.31% |
IJH had its best year in 2013 with an annual return of 33.4%. IJH’s worst year over the past decade yielded -11.14% and occurred in 2018. In most years the iShares Core S&P Mid-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 13.61%, 16.19%, and 17.76% respectively.
The year 2019 was the strongest year for ACWI, returning 26.7% on an annual basis. The poorest year for ACWI in the last ten years was 2018, with a yield of -9.15%. Most years the iShares MSCI ACWI ETF has given investors modest returns, such as in 2016, 2010, and 2012, when gains were 8.22%, 12.31%, and 15.99% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| ACWI | $10,000 | $27,241 | 10.21% |
A $10,000 investment in IJH would have resulted in a final balance of $37,266. This is a profit of $27,266 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.50%.
With a $10,000 investment in ACWI, the end total would have been $27,241. This equates to a $17,241 profit over 11 years and a compound annual growth rate (CAGR) of 10.21%.
IJH’s CAGR is 3.28 percentage points higher than that of ACWI and as a result, would have yielded $10,025 more on a $10,000 investment. Thus, IJH outperformed ACWI by 3.28% annually.
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