The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IUSB is a iShares N/A fund. So, what’s the difference between IJH and IUSB? And which fund is better?
The expense ratio of IJH is 0.01 percentage points lower than IUSB’s (0.05% vs. 0.06%). IJH also has a high exposure to the industrials sector while IUSB is mostly comprised of AAA bonds. Overall, IJH has provided higher returns than IUSB over the past ten years.
In this article, we’ll compare IJH vs. IUSB. We’ll look at holdings and fund composition, as well as at their industry exposure and annual returns. Moreover, I’ll also discuss IJH’s and IUSB’s portfolio growth, risk metrics, and performance and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||iShares Core Total USD Bond Market ETF|
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 Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.
IJH’s dividend yield is 1.03% lower than that of IUSB (1.07% vs. 2.1%). Also, IJH yielded on average 9.37% more per year over the past decade (13.50% vs. 4.13%). The expense ratio of IJH is 0.01 percentage points lower than IUSB’s (0.05% vs. 0.06%).
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|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%.
|IUSB Bond Sectors||Weight|
IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.
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The iShares Core S&P Mid-Cap ETF (IJH) has a Treynor Ratio of 10.55 with a Beta of 1.15 and a Alpha of -4.01. Its R-squared is 86.39 while IJH’s Mean Return is 1.13. Furthermore, the fund has a Sharpe Ratio of 0.77 and a Standard Deviation of 16.8.
The iShares Core Total USD Bond Market ETF (IUSB) has a Sharpe Ratio of 0 with a Beta of 0 and a R-squared of 0. Its Alpha is 0 while IUSB’s Standard Deviation is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Mean Return of 0.
IJH’s Mean Return is 1.13 points higher than that of IUSB and its R-squared is 86.39 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than IUSB. The Alpha and Beta of IJH are 4.01 points lower and 1.15 points higher than IUSB’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 2019 was the strongest year for IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IJH would have resulted in a final balance of $17,450. This is a profit of $7,450 over 6 years and amounts to a compound annual growth rate (CAGR) of 13.50%.
With a $10,000 investment in IUSB, the end total would have been $12,704. This equates to a $2,704 profit over 6 years and a compound annual growth rate (CAGR) of 4.13%.
IJH’s CAGR is 9.37 percentage points higher than that of IUSB and as a result, would have yielded $4,746 more on a $10,000 investment. Thus, IJH outperformed IUSB by 9.37% annually.
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