IJH vs. BSV: What’s The Difference?

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

IJH and BSV have the same expense ratio: 0.05%. IJH also has a high exposure to the industrials sector while BSV is mostly comprised of AAA bonds. Overall, IJH has provided higher returns than BSV over the past ten years.

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

Summary

IJH BSV
Name iShares Core S&P Mid-Cap ETF Vanguard Short-Term Bond Index Fund ETF Shares
Category Mid-Cap Blend Short-Term Bond
Issuer iShares Vanguard
AUM 63.4B 67.71B
Avg. Return 13.50% 2.27%
Div. Yield 1.07% 1.48%
Expense Ratio 0.05% 0.05%

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 Short-Term Bond Index Fund ETF Shares (BSV) is a Short-Term Bond fund that is issued by Vanguard. It currently has 67.71B total assets under management and has yielded an average annual return of 2.27% over the past 10 years. The fund has a dividend yield of 1.48% with an expense ratio of 0.05%.

IJH’s dividend yield is 0.41% lower than that of BSV (1.07% vs. 1.48%). Also, IJH yielded on average 11.23% more per year over the past decade (13.50% vs. 2.27%). IJH and BSV have the same expense ratio: 0.05%.

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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%.

BSV - Holdings

BSV Bond Sectors Weight
AAA 71.65%
BBB 13.08%
A 11.95%
AA 3.28%
Others 0.03%
Below B 0.01%
B 0.0%
BB 0.0%
US Government 0.0%

BSV’s Top Bond Sectors are ratings of AAA, BBB, A, AA, and Others at 71.65%, 13.08%, 11.95%, 3.28%, and 0.03%. The fund is less weighted towards Below B (0.01%), B (0.0%), and BB (0.0%) rated bonds.

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Risk Analysis

IJH BSV
Mean Return 1.13 0.16
R-squared 86.39 78.38
Std. Deviation 16.8 1.33
Alpha -4.01 0.21
Beta 1.15 0.38
Sharpe Ratio 0.77 0.98
Treynor Ratio 10.55 3.33

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

The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a Alpha of 0.21 with a Sharpe Ratio of 0.98 and a Mean Return of 0.16. Its R-squared is 78.38 while BSV’s Standard Deviation is 1.33. Furthermore, the fund has a Treynor Ratio of 3.33 and a Beta of 0.38.

IJH’s Mean Return is 0.97 points higher than that of BSV and its R-squared is 8.01 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than BSV. The Alpha and Beta of IJH are 4.22 points lower and 0.77 points higher than BSV’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. BSV - Annual Returns

Year IJH BSV
2020 13.61% 4.67%
2019 26.14% 4.92%
2018 -11.14% 1.34%
2017 16.19% 1.2%
2016 20.63% 1.42%
2015 -2.23% 0.92%
2014 9.64% 1.32%
2013 33.4% 0.17%
2012 17.76% 1.98%
2011 -1.89% 3.04%
2010 26.38% 4.0%

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 2019 was the strongest year for BSV, returning 4.92% on an annual basis. The poorest year for BSV in the last ten years was 2013, with a yield of 0.17%. Most years the Vanguard Short-Term Bond Index Fund ETF Shares has given investors modest returns, such as in 2018, 2016, and 2012, when gains were 1.34%, 1.42%, and 1.98% respectively.

Portfolio Growth

IJH vs. BSV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
BSV $10,000 $12,785 2.27%

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 BSV, the end total would have been $12,785. This equates to a $2,785 profit over 11 years and a compound annual growth rate (CAGR) of 2.27%.

IJH’s CAGR is 11.23 percentage points higher than that of BSV and as a result, would have yielded $24,481 more on a $10,000 investment. Thus, IJH outperformed BSV by 11.23% annually.


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