The iShares Core S&P Mid-Cap ETF (IJH) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IJH and DIA? And which fund is better?
The expense ratio of IJH is 0.11 percentage points lower than DIA’s (0.05% vs. 0.16%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than DIA over the past ten years.
In this article, we’ll compare IJH vs. DIA. We’ll look at portfolio growth and risk metrics, as well as at their performance and holdings. Moreover, I’ll also discuss IJH’s and DIA’s annual returns, industry exposure, and fund composition and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||SPDR Dow Jones Industrial Average ETF Trust|
|Category||Mid-Cap Blend||Large Value|
|Issuer||iShares||SPDR State Street Global Advisors|
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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.
IJH’s dividend yield is 0.54% lower than that of DIA (1.07% vs. 1.61%). Also, IJH yielded on average 0.15% more per year over the past decade (13.50% vs. 13.35%). The expense ratio of IJH is 0.11 percentage points lower than DIA’s (0.05% vs. 0.16%).
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 SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.
DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.
IJH is 1.39% more exposed to the Industrials sector than DIA (18.09% vs 16.7%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 1.47% higher and 5.83% lower respectively (14.91% vs. 13.44% and 14.85% vs. 20.68%). In total, Energy, Utilities, and Consumer Defensive also make up 1.12% more of the fund’s holdings compared to DIA (9.42% vs. 8.30%).
|Molina Healthcare Inc||0.68%|
|Fair Isaac Corp||0.64%|
|Camden Property Trust||0.62%|
|XPO Logistics Inc||0.6%|
|SolarEdge Technologies Inc||0.57%|
|FactSet Research Systems Inc||0.57%|
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%.
|UnitedHealth Group Inc||7.63%|
|Goldman Sachs Group Inc||7.23%|
|The Home Depot Inc||6.07%|
|Visa Inc Class A||4.45%|
|Honeywell International Inc||4.18%|
DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.
Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.
The iShares Core S&P Mid-Cap ETF (IJH) has a Treynor Ratio of 10.55 with a Sharpe Ratio of 0.77 and a Mean Return of 1.13. Its Alpha is -4.01 while IJH’s R-squared is 86.39. Furthermore, the fund has a Standard Deviation of 16.8 and a Beta of 1.15.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a R-squared of 93.31 with a Sharpe Ratio of 0.94 and a Beta of 0.97. Its Alpha is -0.94 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Standard Deviation of 13.68 and a Treynor Ratio of 13.07.
IJH’s Mean Return is 0.00 points lower than that of DIA and its R-squared is 6.92 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than DIA. The Alpha and Beta of IJH are 3.07 points lower and 0.18 points higher than DIA’s Alpha and Beta.
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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.
IJH’s CAGR is 0.15 percentage points higher than that of DIA and as a result, would have yielded $699 less on a $10,000 investment. Thus, IJH outperformed DIA by 0.15% annually.
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