The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Russell Mid-Cap Growth ETF (IWP) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IWP is a iShares Mid-Cap Growth fund. So, what’s the difference between IJH and IWP? And which fund is better?
The expense ratio of IJH is 0.19 percentage points lower than IWP’s (0.05% vs. 0.24%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than IWP over the past ten years.
In this article, we’ll compare IJH vs. IWP. We’ll look at annual returns and risk metrics, as well as at their portfolio growth and fund composition. Moreover, I’ll also discuss IJH’s and IWP’s holdings, industry exposure, and performance and examine how these affect their overall returns.
Summary
| IJH | IWP | |
| Name | iShares Core S&P Mid-Cap ETF | iShares Russell Mid-Cap Growth ETF |
| Category | Mid-Cap Blend | Mid-Cap Growth |
| Issuer | iShares | iShares |
| AUM | 63.4B | 15.7B |
| Avg. Return | 13.50% | 16.75% |
| Div. Yield | 1.07% | 0.26% |
| 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 Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.
IJH’s dividend yield is 0.81% higher than that of IWP (1.07% vs. 0.26%). Also, IJH yielded on average 3.25% less per year over the past decade (13.50% vs. 16.75%). The expense ratio of IJH is 0.19 percentage points lower than IWP’s (0.05% vs. 0.24%).
Fund Composition
Industry Exposure
| IJH | IWP | |
| Technology | 14.81% | 33.88% |
| Industrials | 18.09% | 14.09% |
| Energy | 2.5% | 1.51% |
| Communication Services | 1.57% | 6.32% |
| Utilities | 2.9% | 0.16% |
| Healthcare | 10.89% | 16.79% |
| Consumer Defensive | 4.02% | 2.32% |
| Real Estate | 10.04% | 2.46% |
| Financial Services | 14.85% | 4.52% |
| Consumer Cyclical | 14.91% | 16.09% |
| Basic Materials | 5.42% | 1.86% |
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 Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.
IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.
IJH is 4.00% more exposed to the Industrials sector than IWP (18.09% vs 14.09%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 1.18% lower and 10.33% higher respectively (14.91% vs. 16.09% and 14.85% vs. 4.52%). In total, Energy, Utilities, and Consumer Defensive also make up 5.43% more of the fund’s holdings compared to IWP (9.42% vs. 3.99%).
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%.
| IWP Holdings | Weight |
| IDEXX Laboratories Inc | 1.3% |
| DocuSign Inc | 1.3% |
| Roku Inc Class A | 1.29% |
| Match Group Inc | 1.06% |
| Chipotle Mexican Grill Inc | 1.06% |
| Pinterest Inc | 1.05% |
| Veeva Systems Inc Class A | 1.04% |
| Palantir Technologies Inc Ordinary Shares – Class A | 1.04% |
| Lululemon Athletica Inc | 1.01% |
| DexCom Inc | 1.0% |
IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.
Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.
Risk Analysis
| IJH | IWP | |
| Mean Return | 1.13 | 1.27 |
| R-squared | 86.39 | 87.01 |
| Std. Deviation | 16.8 | 16.05 |
| Alpha | -4.01 | -1.03 |
| Beta | 1.15 | 1.1 |
| Sharpe Ratio | 0.77 | 0.91 |
| Treynor Ratio | 10.55 | 12.98 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Standard Deviation of 16.8 with a Treynor Ratio of 10.55 and a R-squared of 86.39. Its Mean Return is 1.13 while IJH’s Alpha is -4.01. Furthermore, the fund has a Beta of 1.15 and a Sharpe Ratio of 0.77.
The iShares Russell Mid-Cap Growth ETF (IWP) has a Mean Return of 1.27 with a Beta of 1.1 and a Treynor Ratio of 12.98. Its R-squared is 87.01 while IWP’s Sharpe Ratio is 0.91. Furthermore, the fund has a Alpha of -1.03 and a Standard Deviation of 16.05.
IJH’s Mean Return is 0.14 points lower than that of IWP and its R-squared is 0.62 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IWP. The Alpha and Beta of IJH are 2.98 points lower and 0.05 points higher than IWP’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | IWP |
| 2020 | 13.61% | 35.29% |
| 2019 | 26.14% | 35.14% |
| 2018 | -11.14% | -4.95% |
| 2017 | 16.19% | 24.98% |
| 2016 | 20.63% | 7.15% |
| 2015 | -2.23% | -0.39% |
| 2014 | 9.64% | 11.68% |
| 2013 | 33.4% | 35.44% |
| 2012 | 17.76% | 15.62% |
| 2011 | -1.89% | -1.82% |
| 2010 | 26.38% | 26.1% |
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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| IWP | $10,000 | $50,191 | 16.75% |
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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.
IJH’s CAGR is 3.25 percentage points lower than that of IWP and as a result, would have yielded $12,925 less on a $10,000 investment. Thus, IJH performed worse than IWP by 3.25% annually.
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