The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Russell 1000 Value ETF (IWD) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IWD is a iShares Large Value fund. So, what’s the difference between IJH and IWD? And which fund is better?
The expense ratio of IJH is 0.14 percentage points lower than IWD’s (0.05% vs. 0.19%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than IWD over the past ten years.
In this article, we’ll compare IJH vs. IWD. We’ll look at industry exposure and risk metrics, as well as at their fund composition and annual returns. Moreover, I’ll also discuss IJH’s and IWD’s portfolio growth, performance, and holdings and examine how these affect their overall returns.
Summary
| IJH | IWD | |
| Name | iShares Core S&P Mid-Cap ETF | iShares Russell 1000 Value ETF |
| Category | Mid-Cap Blend | Large Value |
| Issuer | iShares | iShares |
| AUM | 63.4B | 54.1B |
| Avg. Return | 13.50% | 11.40% |
| Div. Yield | 1.07% | 1.57% |
| Expense Ratio | 0.05% | 0.19% |
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 Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
IJH’s dividend yield is 0.50% lower than that of IWD (1.07% vs. 1.57%). Also, IJH yielded on average 2.10% more per year over the past decade (13.50% vs. 11.40%). The expense ratio of IJH is 0.14 percentage points lower than IWD’s (0.05% vs. 0.19%).
Fund Composition
Industry Exposure
| IJH | IWD | |
| Technology | 14.81% | 10.28% |
| Industrials | 18.09% | 11.77% |
| Energy | 2.5% | 4.76% |
| Communication Services | 1.57% | 8.67% |
| Utilities | 2.9% | 4.88% |
| Healthcare | 10.89% | 17.78% |
| Consumer Defensive | 4.02% | 7.76% |
| Real Estate | 10.04% | 4.94% |
| Financial Services | 14.85% | 20.43% |
| Consumer Cyclical | 14.91% | 5.62% |
| Basic Materials | 5.42% | 3.1% |
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 Russell 1000 Value ETF (IWD) has the most exposure to the Financial Services sector at 20.43%. This is followed by Healthcare and Industrials at 17.78% and 11.77% respectively. Energy (4.76%), Utilities (4.88%), and Real Estate (4.94%) only make up 14.58% of the fund’s total assets.
IWD’s mid-section with moderate exposure is comprised of Consumer Cyclical, Consumer Defensive, Communication Services, Technology, and Industrials stocks at 5.62%, 7.76%, 8.67%, 10.28%, and 11.77%.
IJH is 6.32% more exposed to the Industrials sector than IWD (18.09% vs 11.77%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 9.29% higher and 5.58% lower respectively (14.91% vs. 5.62% and 14.85% vs. 20.43%). In total, Energy, Utilities, and Consumer Defensive also make up 7.98% less of the fund’s holdings compared to IWD (9.42% vs. 17.40%).
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%.
| IWD Holdings | Weight |
| Berkshire Hathaway Inc Class B | 2.58% |
| JPMorgan Chase & Co | 2.25% |
| Johnson & Johnson | 2.24% |
| UnitedHealth Group Inc | 1.78% |
| Procter & Gamble Co | 1.71% |
| The Walt Disney Co | 1.5% |
| Bank of America Corp | 1.43% |
| Comcast Corp Class A | 1.33% |
| Exxon Mobil Corp | 1.2% |
| Pfizer Inc | 1.18% |
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
Risk Analysis
| IJH | IWD | |
| Mean Return | 1.13 | 1.03 |
| R-squared | 86.39 | 92.38 |
| Std. Deviation | 16.8 | 14.35 |
| Alpha | -4.01 | -3.23 |
| Beta | 1.15 | 1.02 |
| Sharpe Ratio | 0.77 | 0.81 |
| Treynor Ratio | 10.55 | 11.06 |
The iShares Core S&P Mid-Cap ETF (IJH) has a R-squared of 86.39 with a Mean Return of 1.13 and a Treynor Ratio of 10.55. Its Alpha is -4.01 while IJH’s Beta is 1.15. Furthermore, the fund has a Standard Deviation of 16.8 and a Sharpe Ratio of 0.77.
The iShares Russell 1000 Value ETF (IWD) has a Sharpe Ratio of 0.81 with a Alpha of -3.23 and a Standard Deviation of 14.35. Its Treynor Ratio is 11.06 while IWD’s R-squared is 92.38. Furthermore, the fund has a Mean Return of 1.03 and a Beta of 1.02.
IJH’s Mean Return is 0.10 points higher than that of IWD and its R-squared is 5.99 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IWD. The Alpha and Beta of IJH are 0.78 points lower and 0.13 points higher than IWD’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | IWD |
| 2020 | 13.61% | 2.67% |
| 2019 | 26.14% | 26.34% |
| 2018 | -11.14% | -8.4% |
| 2017 | 16.19% | 13.47% |
| 2016 | 20.63% | 17.09% |
| 2015 | -2.23% | -3.95% |
| 2014 | 9.64% | 13.21% |
| 2013 | 33.4% | 32.18% |
| 2012 | 17.76% | 17.28% |
| 2011 | -1.89% | 0.21% |
| 2010 | 26.38% | 15.3% |
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 IWD, returning 32.18% on an annual basis. The poorest year for IWD in the last ten years was 2018, with a yield of -8.4%. Most years the iShares Russell 1000 Value ETF has given investors modest returns, such as in 2014, 2017, and 2010, when gains were 13.21%, 13.47%, and 15.3% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| IWD | $10,000 | $30,746 | 11.40% |
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 IWD, the end total would have been $30,746. This equates to a $20,746 profit over 11 years and a compound annual growth rate (CAGR) of 11.40%.
IJH’s CAGR is 2.10 percentage points higher than that of IWD and as a result, would have yielded $6,520 more on a $10,000 investment. Thus, IJH outperformed IWD by 2.10% annually.
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