The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Gold Trust (IAU) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IAU is a iShares N/A fund. So, what’s the difference between IJH and IAU? And which fund is better?
The expense ratio of IJH is 0.20 percentage points lower than IAU’s (0.05% vs. 0.25%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided higher returns than IAU over the past ten years.
In this article, we’ll compare IJH vs. IAU. We’ll look at portfolio growth and fund composition, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss IJH’s and IAU’s industry exposure, performance, and holdings and examine how these affect their overall returns.
Summary
| IJH | IAU | |
| Name | iShares Core S&P Mid-Cap ETF | iShares Gold Trust |
| Category | Mid-Cap Blend | N/A |
| Issuer | iShares | iShares |
| AUM | 63.4B | 28.61B |
| Avg. Return | 13.50% | 6.03% |
| Div. Yield | 1.07% | 0.0% |
| Expense Ratio | 0.05% | 0.25% |
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 Gold Trust (IAU) is a N/A fund that is issued by iShares. It currently has 28.61B total assets under management and has yielded an average annual return of 6.03% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.25%.
IJH’s dividend yield is 1.07% higher than that of IAU (1.07% vs. 0.0%). Also, IJH yielded on average 7.47% more per year over the past decade (13.50% vs. 6.03%). The expense ratio of IJH is 0.20 percentage points lower than IAU’s (0.05% vs. 0.25%).
Fund Composition
Industry Exposure
| IJH | IAU | |
| Technology | 14.81% | 0.0% |
| Industrials | 18.09% | 0.0% |
| Energy | 2.5% | 0.0% |
| Communication Services | 1.57% | 0.0% |
| Utilities | 2.9% | 0.0% |
| Healthcare | 10.89% | 0.0% |
| Consumer Defensive | 4.02% | 0.0% |
| Real Estate | 10.04% | 0.0% |
| Financial Services | 14.85% | 0.0% |
| Consumer Cyclical | 14.91% | 0.0% |
| Basic Materials | 5.42% | 0.0% |
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 Gold Trust (IAU) 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.
IAU’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 IAU (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 IAU (9.42% vs. 0.00%).
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%.
| IAU Holdings | Weight |
| Gold | 100.0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
| N/A | 0% |
IAU’s Top Holdings are Gold, 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 IAU’s holdings at 0% and 0%.
Risk Analysis
| IJH | IAU | |
| Mean Return | 1.13 | 0.23 |
| R-squared | 86.39 | 16.03 |
| Std. Deviation | 16.8 | 16.97 |
| Alpha | -4.01 | 4.16 |
| Beta | 1.15 | 0.48 |
| Sharpe Ratio | 0.77 | 0.13 |
| Treynor Ratio | 10.55 | 1.5 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Mean Return of 1.13 with a Treynor Ratio of 10.55 and a Alpha of -4.01. Its Beta is 1.15 while IJH’s Standard Deviation is 16.8. Furthermore, the fund has a R-squared of 86.39 and a Sharpe Ratio of 0.77.
The iShares Gold Trust (IAU) has a Treynor Ratio of 1.5 with a Sharpe Ratio of 0.13 and a R-squared of 16.03. Its Standard Deviation is 16.97 while IAU’s Beta is 0.48. Furthermore, the fund has a Alpha of 4.16 and a Mean Return of 0.23.
IJH’s Mean Return is 0.90 points higher than that of IAU and its R-squared is 70.36 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than IAU. The Alpha and Beta of IJH are 8.17 points lower and 0.67 points higher than IAU’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | IAU |
| 2020 | 13.61% | 23.86% |
| 2019 | 26.14% | 18.54% |
| 2018 | -11.14% | -1.39% |
| 2017 | 16.19% | 11.58% |
| 2016 | 20.63% | 8.85% |
| 2015 | -2.23% | -11.65% |
| 2014 | 9.64% | -0.44% |
| 2013 | 33.4% | -27.96% |
| 2012 | 17.76% | 8.37% |
| 2011 | -1.89% | 8.66% |
| 2010 | 26.38% | 27.93% |
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 IAU, returning 27.93% on an annual basis. The poorest year for IAU in the last ten years was 2013, with a yield of -27.96%. Most years the iShares Gold Trust has given investors modest returns, such as in 2012, 2011, and 2016, when gains were 8.37%, 8.66%, and 8.85% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| IAU | $10,000 | $16,786 | 6.03% |
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 IAU, the end total would have been $16,786. This equates to a $6,786 profit over 11 years and a compound annual growth rate (CAGR) of 6.03%.
IJH’s CAGR is 7.47 percentage points higher than that of IAU and as a result, would have yielded $20,480 more on a $10,000 investment. Thus, IJH outperformed IAU by 7.47% annually.
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