IJH vs. IXUS: What’s The Difference?

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

The expense ratio of IJH is 0.04 percentage points lower than IXUS’s (0.05% vs. 0.09%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than IXUS over the past ten years.

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

Summary

IJH IXUS
Name iShares Core S&P Mid-Cap ETF iShares Core MSCI Total International Stock ETF
Category Mid-Cap Blend Foreign Large Blend
Issuer iShares iShares
AUM 63.4B 29.54B
Avg. Return 13.50% 6.09%
Div. Yield 1.07% 2.13%
Expense Ratio 0.05% 0.09%

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 Core MSCI Total International Stock ETF (IXUS) is a Foreign Large Blend fund that is issued by iShares. It currently has 29.54B total assets under management and has yielded an average annual return of 6.09% over the past 10 years. The fund has a dividend yield of 2.13% with an expense ratio of 0.09%.

IJH’s dividend yield is 1.06% lower than that of IXUS (1.07% vs. 2.13%). Also, IJH yielded on average 7.41% more per year over the past decade (13.50% vs. 6.09%). The expense ratio of IJH is 0.04 percentage points lower than IXUS’s (0.05% vs. 0.09%).

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Fund Composition

Industry Exposure

IJH vs. IXUS - Industry Exposure

IJH IXUS
Technology 14.81% 13.24%
Industrials 18.09% 12.78%
Energy 2.5% 4.39%
Communication Services 1.57% 7.09%
Utilities 2.9% 2.95%
Healthcare 10.89% 9.29%
Consumer Defensive 4.02% 8.19%
Real Estate 10.04% 3.66%
Financial Services 14.85% 17.34%
Consumer Cyclical 14.91% 12.57%
Basic Materials 5.42% 8.5%

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 Core MSCI Total International Stock ETF (IXUS) has the most exposure to the Financial Services sector at 17.34%. This is followed by Technology and Industrials at 13.24% and 12.78% respectively. Real Estate (3.66%), Energy (4.39%), and Communication Services (7.09%) only make up 15.14% of the fund’s total assets.

IXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 8.19%, 8.5%, 9.29%, 12.57%, and 12.78%.

IJH is 5.31% more exposed to the Industrials sector than IXUS (18.09% vs 12.78%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 2.34% higher and 2.49% lower respectively (14.91% vs. 12.57% and 14.85% vs. 17.34%). In total, Energy, Utilities, and Consumer Defensive also make up 6.11% less of the fund’s holdings compared to IXUS (9.42% vs. 15.53%).

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%.

IXUS - Holdings

IXUS Holdings Weight
Taiwan Semiconductor Manufacturing Co Ltd 1.64%
Tencent Holdings Ltd 1.35%
Alibaba Group Holding Ltd Ordinary Shares 1.34%
Nestle SA 1.1%
Samsung Electronics Co Ltd 1.06%
ASML Holding NV 0.9%
Roche Holding AG 0.81%
LVMH Moet Hennessy Louis Vuitton SE 0.67%
Novartis AG 0.62%
Toyota Motor Corp 0.59%

IXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.64%, 1.35%, 1.34%, 1.1%, and 1.06%.

ASML Holding NV (0.9%), Roche Holding AG (0.81%), and LVMH Moet Hennessy Louis Vuitton SE (0.67%) have a slightly smaller but still significant weight. Novartis AG and Toyota Motor Corp are also represented in the IXUS’s holdings at 0.62% and 0.59%.

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Risk Analysis

IJH IXUS
Mean Return 1.13 0
R-squared 86.39 0
Std. Deviation 16.8 0
Alpha -4.01 0
Beta 1.15 0
Sharpe Ratio 0.77 0
Treynor Ratio 10.55 0

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

The iShares Core MSCI Total International Stock ETF (IXUS) has a R-squared of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Sharpe Ratio is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Beta of 0 and a Mean Return of 0.

IJH’s Mean Return is 1.13 points higher than that of IXUS and its R-squared is 86.39 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than IXUS. The Alpha and Beta of IJH are 4.01 points lower and 1.15 points higher than IXUS’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. IXUS - Annual Returns

Year IJH IXUS
2020 13.61% 11.14%
2019 26.14% 21.85%
2018 -11.14% -14.55%
2017 16.19% 28.08%
2016 20.63% 4.66%
2015 -2.23% -4.62%
2014 9.64% -3.96%
2013 33.4% 15.85%
2012 17.76% 0.0%
2011 -1.89% 0.0%
2010 26.38% 0.0%

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 2017 was the strongest year for IXUS, returning 28.08% on an annual basis. The poorest year for IXUS in the last ten years was 2018, with a yield of -14.55%. Most years the iShares Core MSCI Total International Stock ETF has given investors modest returns, such as in 2011, 2010, and 2016, when gains were 0.0%, 0.0%, and 4.66% respectively.

Portfolio Growth

IJH vs. IXUS - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $19,132 13.50%
IXUS $10,000 $14,209 6.09%

A $10,000 investment in IJH would have resulted in a final balance of $19,132. This is a profit of $9,132 over 7 years and amounts to a compound annual growth rate (CAGR) of 13.50%.

With a $10,000 investment in IXUS, the end total would have been $14,209. This equates to a $4,209 profit over 7 years and a compound annual growth rate (CAGR) of 6.09%.

IJH’s CAGR is 7.41 percentage points higher than that of IXUS and as a result, would have yielded $4,923 more on a $10,000 investment. Thus, IJH outperformed IXUS by 7.41% annually.


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