The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Russell 2000 Value ETF (IWN) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IWN is a iShares Small Value fund. So, what’s the difference between IJH and IWN? And which fund is better?
The expense ratio of IJH is 0.19 percentage points lower than IWN’s (0.05% vs. 0.24%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided higher returns than IWN over the past ten years.
In this article, we’ll compare IJH vs. IWN. We’ll look at portfolio growth and fund composition, as well as at their risk metrics and holdings. Moreover, I’ll also discuss IJH’s and IWN’s annual returns, performance, and industry exposure and examine how these affect their overall returns.
Summary
| IJH | IWN | |
| Name | iShares Core S&P Mid-Cap ETF | iShares Russell 2000 Value ETF |
| Category | Mid-Cap Blend | Small Value |
| Issuer | iShares | iShares |
| AUM | 63.4B | 15.48B |
| Avg. Return | 13.50% | 10.96% |
| Div. Yield | 1.07% | 1.26% |
| Expense Ratio | 0.05% | 0.24% |
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 2000 Value ETF (IWN) is a Small Value fund that is issued by iShares. It currently has 15.48B total assets under management and has yielded an average annual return of 10.96% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.24%.
IJH’s dividend yield is 0.19% lower than that of IWN (1.07% vs. 1.26%). Also, IJH yielded on average 2.54% more per year over the past decade (13.50% vs. 10.96%). The expense ratio of IJH is 0.19 percentage points lower than IWN’s (0.05% vs. 0.24%).
Fund Composition
Industry Exposure
| IJH | IWN | |
| Technology | 14.81% | 6.02% |
| Industrials | 18.09% | 14.58% |
| Energy | 2.5% | 5.84% |
| Communication Services | 1.57% | 4.17% |
| Utilities | 2.9% | 4.69% |
| Healthcare | 10.89% | 10.94% |
| Consumer Defensive | 4.02% | 3.77% |
| Real Estate | 10.04% | 14.36% |
| Financial Services | 14.85% | 22.97% |
| Consumer Cyclical | 14.91% | 8.39% |
| Basic Materials | 5.42% | 4.29% |
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 2000 Value ETF (IWN) has the most exposure to the Financial Services sector at 22.97%. This is followed by Industrials and Real Estate at 14.58% and 14.36% respectively. Communication Services (4.17%), Basic Materials (4.29%), and Utilities (4.69%) only make up 13.15% of the fund’s total assets.
IWN’s mid-section with moderate exposure is comprised of Energy, Technology, Consumer Cyclical, Healthcare, and Real Estate stocks at 5.84%, 6.02%, 8.39%, 10.94%, and 14.36%.
IJH is 3.51% more exposed to the Industrials sector than IWN (18.09% vs 14.58%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 6.52% higher and 8.12% lower respectively (14.91% vs. 8.39% and 14.85% vs. 22.97%). In total, Energy, Utilities, and Consumer Defensive also make up 4.88% less of the fund’s holdings compared to IWN (9.42% vs. 14.30%).
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%.
| IWN Holdings | Weight |
| AMC Entertainment Holdings Inc Class A | 1.06% |
| Tenet Healthcare Corp | 0.47% |
| Stag Industrial Inc | 0.47% |
| Ovintiv Inc | 0.45% |
| EMCOR Group Inc | 0.42% |
| Valley National Bancorp | 0.37% |
| Chesapeake Energy Corp Ordinary Shares – New | 0.37% |
| Agree Realty Corp | 0.36% |
| Macy’s Inc | 0.35% |
| Essent Group Ltd | 0.35% |
IWN’s Top Holdings are AMC Entertainment Holdings Inc Class A, Tenet Healthcare Corp, Stag Industrial Inc, Ovintiv Inc, and EMCOR Group Inc at 1.06%, 0.47%, 0.47%, 0.45%, and 0.42%.
Valley National Bancorp (0.37%), Chesapeake Energy Corp Ordinary Shares – New (0.37%), and Agree Realty Corp (0.36%) have a slightly smaller but still significant weight. Macy’s Inc and Essent Group Ltd are also represented in the IWN’s holdings at 0.35% and 0.35%.
Risk Analysis
| IJH | IWN | |
| Mean Return | 1.13 | 1.01 |
| R-squared | 86.39 | 72.64 |
| Std. Deviation | 16.8 | 19.28 |
| Alpha | -4.01 | -6.32 |
| Beta | 1.15 | 1.21 |
| Sharpe Ratio | 0.77 | 0.59 |
| Treynor Ratio | 10.55 | 8.3 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Treynor Ratio of 10.55 with a R-squared of 86.39 and a Standard Deviation of 16.8. Its Mean Return is 1.13 while IJH’s Beta is 1.15. Furthermore, the fund has a Sharpe Ratio of 0.77 and a Alpha of -4.01.
The iShares Russell 2000 Value ETF (IWN) has a R-squared of 72.64 with a Treynor Ratio of 8.3 and a Mean Return of 1.01. Its Sharpe Ratio is 0.59 while IWN’s Standard Deviation is 19.28. Furthermore, the fund has a Alpha of -6.32 and a Beta of 1.21.
IJH’s Mean Return is 0.12 points higher than that of IWN and its R-squared is 13.75 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than IWN. The Alpha and Beta of IJH are 2.31 points higher and 0.06 points lower than IWN’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | IWN |
| 2020 | 13.61% | 4.5% |
| 2019 | 26.14% | 22.17% |
| 2018 | -11.14% | -12.94% |
| 2017 | 16.19% | 7.73% |
| 2016 | 20.63% | 31.64% |
| 2015 | -2.23% | -7.53% |
| 2014 | 9.64% | 4.13% |
| 2013 | 33.4% | 34.3% |
| 2012 | 17.76% | 17.92% |
| 2011 | -1.89% | -5.64% |
| 2010 | 26.38% | 24.29% |
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 IWN, returning 34.3% on an annual basis. The poorest year for IWN in the last ten years was 2018, with a yield of -12.94%. Most years the iShares Russell 2000 Value ETF has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 4.5%, 7.73%, and 17.92% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| IWN | $10,000 | $28,189 | 10.96% |
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 IWN, the end total would have been $28,189. This equates to a $18,189 profit over 11 years and a compound annual growth rate (CAGR) of 10.96%.
IJH’s CAGR is 2.54 percentage points higher than that of IWN and as a result, would have yielded $9,077 more on a $10,000 investment. Thus, IJH outperformed IWN by 2.54% annually.
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