The iShares Core S&P Mid-Cap ETF (IJH) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IJH and EFV? And which fund is better?
The expense ratio of IJH is 0.34 percentage points lower than EFV’s (0.05% vs. 0.39%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than EFV over the past ten years.
In this article, we’ll compare IJH vs. EFV. We’ll look at industry exposure and holdings, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss IJH’s and EFV’s portfolio growth, performance, and annual returns and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||iShares MSCI EAFE Value ETF|
|Category||Mid-Cap Blend||Foreign Large Value|
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 EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
IJH’s dividend yield is 1.87% lower than that of EFV (1.07% vs. 2.94%). Also, IJH yielded on average 9.51% more per year over the past decade (13.50% vs. 3.99%). The expense ratio of IJH is 0.34 percentage points lower than EFV’s (0.05% vs. 0.39%).
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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 EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
IJH is 6.49% more exposed to the Industrials sector than EFV (18.09% vs 11.6%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 5.91% higher and 11.70% lower respectively (14.91% vs. 9.0% and 14.85% vs. 26.55%). In total, Energy, Utilities, and Consumer Defensive also make up 10.14% less of the fund’s holdings compared to EFV (9.42% vs. 19.56%).
|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%.
|Toyota Motor Corp||2.21%|
|Commonwealth Bank of Australia||1.59%|
|HSBC Holdings PLC||1.4%|
|Rio Tinto PLC||1.1%|
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
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The iShares Core S&P Mid-Cap ETF (IJH) has a Beta of 1.15 with a Standard Deviation of 16.8 and a Treynor Ratio of 10.55. Its Sharpe Ratio is 0.77 while IJH’s Mean Return is 1.13. Furthermore, the fund has a Alpha of -4.01 and a R-squared of 86.39.
The iShares MSCI EAFE Value ETF (EFV) has a R-squared of 92.15 with a Sharpe Ratio of 0.26 and a Standard Deviation of 16.53. Its Beta is 1.05 while EFV’s Alpha is -1.77. Furthermore, the fund has a Treynor Ratio of 2.92 and a Mean Return of 0.42.
IJH’s Mean Return is 0.71 points higher than that of EFV and its R-squared is 5.76 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than EFV. The Alpha and Beta of IJH are 2.24 points lower and 0.10 points higher than EFV’s Alpha and Beta.
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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 EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% 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 EFV, the end total would have been $14,134. This equates to a $4,134 profit over 11 years and a compound annual growth rate (CAGR) of 3.99%.
IJH’s CAGR is 9.51 percentage points higher than that of EFV and as a result, would have yielded $23,132 more on a $10,000 investment. Thus, IJH outperformed EFV by 9.51% annually.
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