IJH vs. BNDX: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and BNDX is a Vanguard N/A fund. So, what’s the difference between IJH and BNDX? And which fund is better?

The expense ratio of IJH is 0.03 percentage points lower than BNDX’s (0.05% vs. 0.08%). IJH also has a high exposure to the industrials sector while BNDX is mostly comprised of A bonds. Overall, IJH has provided higher returns than BNDX over the past ten years.

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

Summary

IJH BNDX
Name iShares Core S&P Mid-Cap ETF Vanguard Total International Bond Index Fund ETF Shares
Category Mid-Cap Blend N/A
Issuer iShares Vanguard
AUM 63.4B 116.41B
Avg. Return 13.50% 4.63%
Div. Yield 1.07% 0.94%
Expense Ratio 0.05% 0.08%

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 Vanguard Total International Bond Index Fund ETF Shares (BNDX) is a N/A fund that is issued by Vanguard. It currently has 116.41B total assets under management and has yielded an average annual return of 4.63% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.08%.

IJH’s dividend yield is 0.13% higher than that of BNDX (1.07% vs. 0.94%). Also, IJH yielded on average 8.87% more per year over the past decade (13.50% vs. 4.63%). The expense ratio of IJH is 0.03 percentage points lower than BNDX’s (0.05% vs. 0.08%).

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Fund Composition

Holdings

IJH - 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%.

BNDX - Holdings

BNDX Bond Sectors Weight
A 29.19%
AA 26.79%
AAA 21.59%
BBB 19.41%
Others 1.57%
Below B 1.45%
B 0.0%
BB 0.0%
US Government 0.0%

BNDX’s Top Bond Sectors are ratings of A, AA, AAA, BBB, and Others at 29.19%, 26.79%, 21.59%, 19.41%, and 1.57%. The fund is less weighted towards Below B (1.45%), B (0.0%), and BB (0.0%) rated bonds.

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Risk Analysis

IJH BNDX
Mean Return 1.13 0
R-squared 86.39 0
Std. Deviation 16.8 0
Alpha -4.01 0
Beta 1.15 0
Sharpe Ratio 0.77 0
Treynor Ratio 10.55 0

The iShares Core S&P Mid-Cap ETF (IJH) has a Alpha of -4.01 with a Beta of 1.15 and a R-squared of 86.39. Its Mean Return is 1.13 while IJH’s Treynor Ratio is 10.55. Furthermore, the fund has a Sharpe Ratio of 0.77 and a Standard Deviation of 16.8.

The Vanguard Total International Bond Index Fund ETF Shares (BNDX) has a Sharpe Ratio of 0 with a R-squared of 0 and a Alpha of 0. Its Mean Return is 0 while BNDX’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.

IJH’s Mean Return is 1.13 points higher than that of BNDX and its R-squared is 86.39 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than BNDX. The Alpha and Beta of IJH are 4.01 points lower and 1.15 points higher than BNDX’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. BNDX - Annual Returns

Year IJH BNDX
2020 13.61% 4.6%
2019 26.14% 7.88%
2018 -11.14% 2.94%
2017 16.19% 2.4%
2016 20.63% 4.67%
2015 -2.23% 1.08%
2014 9.64% 8.83%
2013 33.4% 0.0%
2012 17.76% 0.0%
2011 -1.89% 0.0%
2010 26.38% 0.0%

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 2014 was the strongest year for BNDX, returning 8.83% on an annual basis. The poorest year for BNDX in the last ten years was 2013, with a yield of 0.0%. Most years the Vanguard Total International Bond Index Fund ETF Shares has given investors modest returns, such as in 2015, 2017, and 2018, when gains were 1.08%, 2.4%, and 2.94% respectively.

Portfolio Growth

IJH vs. BNDX - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $19,132 13.50%
BNDX $10,000 $13,695 4.63%

A $10,000 investment in IJH would have resulted in a final balance of $19,132. This is a profit of $9,132 over 7 years and amounts to a compound annual growth rate (CAGR) of 13.50%.

With a $10,000 investment in BNDX, the end total would have been $13,695. This equates to a $3,695 profit over 7 years and a compound annual growth rate (CAGR) of 4.63%.

IJH’s CAGR is 8.87 percentage points higher than that of BNDX and as a result, would have yielded $5,437 more on a $10,000 investment. Thus, IJH outperformed BNDX by 8.87% annually.


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