IJH vs. IVE: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between IJH and IVE? And which fund is better?

The expense ratio of IJH is 0.13 percentage points lower than IVE’s (0.05% vs. 0.18%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than IVE over the past ten years.

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

Summary

IJH IVE
Name iShares Core S&P Mid-Cap ETF iShares S&P 500 Value ETF
Category Mid-Cap Blend Large Value
Issuer iShares iShares
AUM 63.4B 22.4B
Avg. Return 13.50% 11.68%
Div. Yield 1.07% 1.88%
Expense Ratio 0.05% 0.18%

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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

IJH’s dividend yield is 0.81% lower than that of IVE (1.07% vs. 1.88%). Also, IJH yielded on average 1.81% more per year over the past decade (13.50% vs. 11.68%). The expense ratio of IJH is 0.13 percentage points lower than IVE’s (0.05% vs. 0.18%).

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Fund Composition

Industry Exposure

IJH vs. IVE - Industry Exposure

IJH IVE
Technology 14.81% 9.41%
Industrials 18.09% 12.19%
Energy 2.5% 5.43%
Communication Services 1.57% 6.4%
Utilities 2.9% 4.82%
Healthcare 10.89% 15.4%
Consumer Defensive 4.02% 9.23%
Real Estate 10.04% 4.38%
Financial Services 14.85% 22.06%
Consumer Cyclical 14.91% 7.68%
Basic Materials 5.42% 2.99%

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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

IJH is 5.90% more exposed to the Industrials sector than IVE (18.09% vs 12.19%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 7.23% higher and 7.21% lower respectively (14.91% vs. 7.68% and 14.85% vs. 22.06%). In total, Energy, Utilities, and Consumer Defensive also make up 10.06% less of the fund’s holdings compared to IVE (9.42% vs. 19.48%).

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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

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Risk Analysis

IJH IVE
Mean Return 1.13 1.05
R-squared 86.39 92.08
Std. Deviation 16.8 14.3
Alpha -4.01 -2.9
Beta 1.15 1.01
Sharpe Ratio 0.77 0.83
Treynor Ratio 10.55 11.41

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

The iShares S&P 500 Value ETF (IVE) has a Standard Deviation of 14.3 with a Alpha of -2.9 and a R-squared of 92.08. Its Beta is 1.01 while IVE’s Mean Return is 1.05. Furthermore, the fund has a Sharpe Ratio of 0.83 and a Treynor Ratio of 11.41.

IJH’s Mean Return is 0.08 points higher than that of IVE and its R-squared is 5.69 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IVE. The Alpha and Beta of IJH are 1.11 points lower and 0.14 points higher than IVE’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. IVE - Annual Returns

Year IJH IVE
2020 13.61% 1.24%
2019 26.14% 31.71%
2018 -11.14% -9.09%
2017 16.19% 15.19%
2016 20.63% 17.17%
2015 -2.23% -3.24%
2014 9.64% 12.14%
2013 33.4% 31.69%
2012 17.76% 17.45%
2011 -1.89% -0.63%
2010 26.38% 14.9%

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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

IJH vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
IVE $10,000 $31,350 11.68%

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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.

IJH’s CAGR is 1.81 percentage points higher than that of IVE and as a result, would have yielded $5,916 more on a $10,000 investment. Thus, IJH outperformed IVE by 1.81% annually.


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