IJH vs. ITOT: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and ITOT is a iShares Large Blend fund. So, what’s the difference between IJH and ITOT? And which fund is better?

The expense ratio of IJH is 0.02 percentage points higher than ITOT’s (0.05% vs. 0.03%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than ITOT over the past ten years.

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

Summary

IJH ITOT
Name iShares Core S&P Mid-Cap ETF iShares Core S&P Total U.S. Stock Market ETF
Category Mid-Cap Blend Large Blend
Issuer iShares iShares
AUM 63.4B 41.97B
Avg. Return 13.50% 14.59%
Div. Yield 1.07% 1.2%
Expense Ratio 0.05% 0.03%

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 Core S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.

IJH’s dividend yield is 0.13% lower than that of ITOT (1.07% vs. 1.2%). Also, IJH yielded on average 1.09% less per year over the past decade (13.50% vs. 14.59%). The expense ratio of IJH is 0.02 percentage points higher than ITOT’s (0.05% vs. 0.03%).

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Fund Composition

Industry Exposure

IJH vs. ITOT - Industry Exposure

IJH ITOT
Technology 14.81% 24.49%
Industrials 18.09% 9.21%
Energy 2.5% 2.51%
Communication Services 1.57% 10.54%
Utilities 2.9% 2.35%
Healthcare 10.89% 13.59%
Consumer Defensive 4.02% 5.79%
Real Estate 10.04% 3.67%
Financial Services 14.85% 13.69%
Consumer Cyclical 14.91% 11.69%
Basic Materials 5.42% 2.47%

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 Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 24.49%. This is followed by Financial Services and Healthcare at 13.69% and 13.59% respectively. Basic Materials (2.47%), Energy (2.51%), and Real Estate (3.67%) only make up 8.65% of the fund’s total assets.

ITOT’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.79%, 9.21%, 10.54%, 11.69%, and 13.59%.

IJH is 8.88% more exposed to the Industrials sector than ITOT (18.09% vs 9.21%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 3.22% higher and 1.16% higher respectively (14.91% vs. 11.69% and 14.85% vs. 13.69%). In total, Energy, Utilities, and Consumer Defensive also make up 1.23% less of the fund’s holdings compared to ITOT (9.42% vs. 10.65%).

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%.

ITOT - Holdings

ITOT Holdings Weight
Apple Inc 5.07%
Microsoft Corp 4.75%
Amazon.com Inc 3.16%
Facebook Inc Class A 1.89%
Alphabet Inc Class A 1.79%
Alphabet Inc Class C 1.71%
Tesla Inc 1.17%
Berkshire Hathaway Inc Class B 1.17%
NVIDIA Corp 1.08%
JPMorgan Chase & Co 1.02%

ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.

Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.

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Risk Analysis

IJH ITOT
Mean Return 1.13 1.27
R-squared 86.39 99.4
Std. Deviation 16.8 14.02
Alpha -4.01 -0.54
Beta 1.15 1.03
Sharpe Ratio 0.77 1.04
Treynor Ratio 10.55 14.13

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

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Standard Deviation of 14.02 with a Sharpe Ratio of 1.04 and a Alpha of -0.54. Its R-squared is 99.4 while ITOT’s Mean Return is 1.27. Furthermore, the fund has a Treynor Ratio of 14.13 and a Beta of 1.03.

IJH’s Mean Return is 0.14 points lower than that of ITOT and its R-squared is 13.01 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than ITOT. The Alpha and Beta of IJH are 3.47 points lower and 0.12 points higher than ITOT’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. ITOT - Annual Returns

Year IJH ITOT
2020 13.61% 20.75%
2019 26.14% 30.87%
2018 -11.14% -5.27%
2017 16.19% 21.23%
2016 20.63% 12.59%
2015 -2.23% 0.96%
2014 9.64% 13.01%
2013 33.4% 32.67%
2012 17.76% 15.98%
2011 -1.89% 1.55%
2010 26.38% 16.15%

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 ITOT, returning 32.67% on an annual basis. The poorest year for ITOT in the last ten years was 2018, with a yield of -5.27%. Most years the iShares Core S&P Total U.S. Stock Market ETF has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 13.01%, 15.98%, and 16.15% respectively.

Portfolio Growth

IJH vs. ITOT - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
ITOT $10,000 $42,310 14.59%

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 ITOT, the end total would have been $42,310. This equates to a $32,310 profit over 11 years and a compound annual growth rate (CAGR) of 14.59%.

IJH’s CAGR is 1.09 percentage points lower than that of ITOT and as a result, would have yielded $5,044 less on a $10,000 investment. Thus, IJH performed worse than ITOT by 1.09% annually.


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