IJH vs. IVW: What’s The Difference?

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

The expense ratio of IJH is 0.13 percentage points lower than IVW’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 lower returns than IVW over the past ten years.

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

Summary

IJH IVW
Name iShares Core S&P Mid-Cap ETF iShares S&P 500 Growth ETF
Category Mid-Cap Blend Large Growth
Issuer iShares iShares
AUM 63.4B 35.72B
Avg. Return 13.50% 16.74%
Div. Yield 1.07% 0.61%
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 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.

IJH’s dividend yield is 0.46% higher than that of IVW (1.07% vs. 0.61%). Also, IJH yielded on average 3.24% less per year over the past decade (13.50% vs. 16.74%). The expense ratio of IJH is 0.13 percentage points lower than IVW’s (0.05% vs. 0.18%).

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Fund Composition

Industry Exposure

IJH vs. IVW - Industry Exposure

IJH IVW
Technology 14.81% 37.8%
Industrials 18.09% 5.72%
Energy 2.5% 0.06%
Communication Services 1.57% 15.44%
Utilities 2.9% 0.47%
Healthcare 10.89% 11.88%
Consumer Defensive 4.02% 3.84%
Real Estate 10.04% 1.11%
Financial Services 14.85% 6.78%
Consumer Cyclical 14.91% 15.25%
Basic Materials 5.42% 1.65%

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 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.

IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.

IJH is 12.37% more exposed to the Industrials sector than IVW (18.09% vs 5.72%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 0.34% lower and 8.07% higher respectively (14.91% vs. 15.25% and 14.85% vs. 6.78%). In total, Energy, Utilities, and Consumer Defensive also make up 5.05% more of the fund’s holdings compared to IVW (9.42% vs. 4.37%).

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%.

IVW - Holdings

IVW Holdings Weight
Apple Inc 11.46%
Microsoft Corp 10.75%
Amazon.com Inc 7.14%
Facebook Inc Class A 4.28%
Alphabet Inc Class A 4.06%
Alphabet Inc Class C 3.86%
Tesla Inc 2.65%
NVIDIA Corp 2.43%
PayPal Holdings Inc 1.62%
Adobe Inc 1.49%

IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.

Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.

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Risk Analysis

IJH IVW
Mean Return 1.13 1.44
R-squared 86.39 93.82
Std. Deviation 16.8 13.77
Alpha -4.01 2.19
Beta 1.15 0.98
Sharpe Ratio 0.77 1.21
Treynor Ratio 10.55 17.24

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

The iShares S&P 500 Growth ETF (IVW) has a R-squared of 93.82 with a Mean Return of 1.44 and a Sharpe Ratio of 1.21. Its Treynor Ratio is 17.24 while IVW’s Standard Deviation is 13.77. Furthermore, the fund has a Alpha of 2.19 and a Beta of 0.98.

IJH’s Mean Return is 0.31 points lower than that of IVW and its R-squared is 7.43 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IVW. The Alpha and Beta of IJH are 6.20 points lower and 0.17 points higher than IVW’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. IVW - Annual Returns

Year IJH IVW
2020 13.61% 33.21%
2019 26.14% 30.91%
2018 -11.14% -0.17%
2017 16.19% 27.2%
2016 20.63% 6.74%
2015 -2.23% 5.33%
2014 9.64% 14.67%
2013 33.4% 32.48%
2012 17.76% 14.39%
2011 -1.89% 4.49%
2010 26.38% 14.84%

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 2020 was the strongest year for IVW, returning 33.21% on an annual basis. The poorest year for IVW in the last ten years was 2018, with a yield of -0.17%. Most years the iShares S&P 500 Growth ETF has given investors modest returns, such as in 2012, 2014, and 2010, when gains were 14.39%, 14.67%, and 14.84% respectively.

Portfolio Growth

IJH vs. IVW - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
IVW $10,000 $51,915 16.74%

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 IVW, the end total would have been $51,915. This equates to a $41,915 profit over 11 years and a compound annual growth rate (CAGR) of 16.74%.

IJH’s CAGR is 3.24 percentage points lower than that of IVW and as a result, would have yielded $14,649 less on a $10,000 investment. Thus, IJH performed worse than IVW by 3.24% annually.


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