The iShares Core S&P Mid-Cap ETF (IJH) and the iShares Russell Mid-Cap Value ETF (IWS) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and IWS is a iShares Mid-Cap Value fund. So, what’s the difference between IJH and IWS? And which fund is better?
The expense ratio of IJH is 0.18 percentage points lower than IWS’s (0.05% vs. 0.23%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than IWS over the past ten years.
In this article, we’ll compare IJH vs. IWS. We’ll look at portfolio growth and fund composition, as well as at their annual returns and holdings. Moreover, I’ll also discuss IJH’s and IWS’s performance, industry exposure, and risk metrics and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||iShares Russell Mid-Cap Value ETF|
|Category||Mid-Cap Blend||Mid-Cap Value|
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 Value ETF (IWS) is a Mid-Cap Value fund that is issued by iShares. It currently has 14.24B total assets under management and has yielded an average annual return of 12.35% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.23%.
IJH’s dividend yield is 0.27% lower than that of IWS (1.07% vs. 1.34%). Also, IJH yielded on average 1.15% more per year over the past decade (13.50% vs. 12.35%). The expense ratio of IJH is 0.18 percentage points lower than IWS’s (0.05% vs. 0.23%).
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 Value ETF (IWS) has the most exposure to the Financial Services sector at 15.75%. This is followed by Industrials and Consumer Cyclical at 14.6% and 12.07% respectively. Energy (4.71%), Consumer Defensive (4.76%), and Basic Materials (5.4%) only make up 14.87% of the fund’s total assets.
IWS’s mid-section with moderate exposure is comprised of Utilities, Healthcare, Technology, Real Estate, and Consumer Cyclical stocks at 6.97%, 8.56%, 11.39%, 11.71%, and 12.07%.
IJH is 3.49% more exposed to the Industrials sector than IWS (18.09% vs 14.6%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 2.84% higher and 0.90% lower respectively (14.91% vs. 12.07% and 14.85% vs. 15.75%). In total, Energy, Utilities, and Consumer Defensive also make up 7.02% less of the fund’s holdings compared to IWS (9.42% vs. 16.44%).
|Molina Healthcare Inc||0.68%|
|Fair Isaac Corp||0.64%|
|Camden Property Trust||0.62%|
|XPO Logistics Inc||0.6%|
|SolarEdge Technologies Inc||0.57%|
|FactSet Research Systems Inc||0.57%|
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%.
|Marvell Technology Inc||0.69%|
|IHS Markit Ltd||0.62%|
|Prudential Financial Inc||0.56%|
|Otis Worldwide Corp Ordinary Shares||0.54%|
|International Flavors & Fragrances Inc||0.53%|
|Xcel Energy Inc||0.52%|
|Motorola Solutions Inc||0.52%|
IWS’s Top Holdings are Twitter Inc, Marvell Technology Inc, IHS Markit Ltd, Prudential Financial Inc, and Otis Worldwide Corp Ordinary Shares at 0.69%, 0.69%, 0.62%, 0.56%, and 0.54%.
International Flavors & Fragrances Inc (0.53%), Xcel Energy Inc (0.52%), and Motorola Solutions Inc (0.52%) have a slightly smaller but still significant weight. Aptiv PLC and Aflac Inc are also represented in the IWS’s holdings at 0.52% and 0.52%.
The iShares Core S&P Mid-Cap ETF (IJH) has a Beta of 1.15 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 Treynor Ratio of 10.55.
The iShares Russell Mid-Cap Value ETF (IWS) has a R-squared of 87.04 with a Beta of 1.1 and a Sharpe Ratio of 0.75. Its Mean Return is 1.06 while IWS’s Alpha is -4.11. Furthermore, the fund has a Standard Deviation of 16.03 and a Treynor Ratio of 10.3.
IJH’s Mean Return is 0.07 points higher than that of IWS and its R-squared is 0.65 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than IWS. The Alpha and Beta of IJH are 0.10 points higher and 0.05 points higher than IWS’s Alpha and Beta.
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 IWS, returning 33.11% on an annual basis. The poorest year for IWS in the last ten years was 2018, with a yield of -12.36%. Most years the iShares Russell Mid-Cap Value ETF has given investors modest returns, such as in 2017, 2014, and 2012, when gains were 13.1%, 14.49%, and 18.27% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 IWS, the end total would have been $33,083. This equates to a $23,083 profit over 11 years and a compound annual growth rate (CAGR) of 12.35%.
IJH’s CAGR is 1.15 percentage points higher than that of IWS and as a result, would have yielded $4,183 more on a $10,000 investment. Thus, IJH outperformed IWS by 1.15% annually.
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