The iShares Core S&P Mid-Cap ETF (IJH) and the SPDR Gold Shares (GLD) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and GLD is a SPDR State Street Global Advisors N/A fund. So, what’s the difference between IJH and GLD? And which fund is better?
The expense ratio of IJH is 0.35 percentage points lower than GLD’s (0.05% vs. 0.4%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than GLD over the past ten years.
In this article, we’ll compare IJH vs. GLD. We’ll look at industry exposure and fund composition, as well as at their annual returns and performance. Moreover, I’ll also discuss IJH’s and GLD’s holdings, risk metrics, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||SPDR Gold Shares|
|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 Gold Shares (GLD) is a N/A fund that is issued by SPDR State Street Global Advisors. It currently has 59.26B total assets under management and has yielded an average annual return of 5.81% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.4%.
IJH’s dividend yield is 1.07% higher than that of GLD (1.07% vs. 0.0%). Also, IJH yielded on average 7.69% more per year over the past decade (13.50% vs. 5.81%). The expense ratio of IJH is 0.35 percentage points lower than GLD’s (0.05% vs. 0.4%).
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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 SPDR Gold Shares (GLD) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
GLD’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
IJH is 18.09% more exposed to the Industrials sector than GLD (18.09% vs 0.0%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 14.91% higher and 14.85% higher respectively (14.91% vs. 0.0% and 14.85% vs. 0.0%). In total, Energy, Utilities, and Consumer Defensive also make up 9.42% more of the fund’s holdings compared to GLD (9.42% vs. 0.00%).
|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%.
GLD’s Top Holdings are Gold Trust, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the GLD’s holdings at 0% and 0%.
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The iShares Core S&P Mid-Cap ETF (IJH) has a Alpha of -4.01 with a Treynor Ratio of 10.55 and a Sharpe Ratio of 0.77. Its Standard Deviation is 16.8 while IJH’s Beta is 1.15. Furthermore, the fund has a Mean Return of 1.13 and a R-squared of 86.39.
The SPDR Gold Shares (GLD) has a Treynor Ratio of 1.21 with a Alpha of 3.91 and a Mean Return of 0.21. Its Sharpe Ratio is 0.12 while GLD’s Standard Deviation is 16.58. Furthermore, the fund has a Beta of 0.48 and a R-squared of 16.21.
IJH’s Mean Return is 0.92 points higher than that of GLD and its R-squared is 70.18 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than GLD. The Alpha and Beta of IJH are 7.92 points lower and 0.67 points higher than GLD’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 2010 was the strongest year for GLD, returning 27.25% on an annual basis. The poorest year for GLD in the last ten years was 2013, with a yield of -28.09%. Most years the SPDR Gold Shares has given investors modest returns, such as in 2012, 2016, and 2011, when gains were 5.26%, 8.69%, and 11.2% 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 GLD, the end total would have been $16,395. This equates to a $6,395 profit over 11 years and a compound annual growth rate (CAGR) of 5.81%.
IJH’s CAGR is 7.69 percentage points higher than that of GLD and as a result, would have yielded $20,871 more on a $10,000 investment. Thus, IJH outperformed GLD by 7.69% annually.
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