The iShares Core S&P Mid-Cap ETF (IJH) and the SPDR S&P MIDCAP 400 ETF Trust (MDY) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund. So, what’s the difference between IJH and MDY? And which fund is better?
The expense ratio of IJH is 0.18 percentage points lower than MDY’s (0.05% vs. 0.23%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided higher returns than MDY over the past ten years.
In this article, we’ll compare IJH vs. MDY. We’ll look at annual returns and industry exposure, as well as at their performance and risk metrics. Moreover, I’ll also discuss IJH’s and MDY’s fund composition, holdings, and portfolio growth and examine how these affect their overall returns.
Summary
| IJH | MDY | |
| Name | iShares Core S&P Mid-Cap ETF | SPDR S&P MIDCAP 400 ETF Trust |
| Category | Mid-Cap Blend | Mid-Cap Blend |
| Issuer | iShares | SPDR State Street Global Advisors |
| AUM | 63.4B | 21.31B |
| Avg. Return | 13.50% | 13.29% |
| Div. Yield | 1.07% | 0.94% |
| Expense Ratio | 0.05% | 0.23% |
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 SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.
IJH’s dividend yield is 0.13% higher than that of MDY (1.07% vs. 0.94%). Also, IJH yielded on average 0.21% more per year over the past decade (13.50% vs. 13.29%). The expense ratio of IJH is 0.18 percentage points lower than MDY’s (0.05% vs. 0.23%).
Fund Composition
Industry Exposure
| IJH | MDY | |
| Technology | 14.81% | 14.74% |
| Industrials | 18.09% | 17.88% |
| Energy | 2.5% | 2.52% |
| Communication Services | 1.57% | 1.63% |
| Utilities | 2.9% | 2.84% |
| Healthcare | 10.89% | 11.17% |
| Consumer Defensive | 4.02% | 4.2% |
| Real Estate | 10.04% | 9.66% |
| Financial Services | 14.85% | 15.2% |
| Consumer Cyclical | 14.91% | 14.89% |
| Basic Materials | 5.42% | 5.27% |
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 SPDR S&P MIDCAP 400 ETF Trust (MDY) has the most exposure to the Industrials sector at 17.88%. This is followed by Financial Services and Consumer Cyclical at 15.2% and 14.89% respectively. Energy (2.52%), Utilities (2.84%), and Consumer Defensive (4.2%) only make up 9.56% of the fund’s total assets.
MDY’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Consumer Cyclical stocks at 5.27%, 9.66%, 11.17%, 14.74%, and 14.89%.
IJH is 0.21% more exposed to the Industrials sector than MDY (18.09% vs 17.88%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 0.02% higher and 0.35% lower respectively (14.91% vs. 14.89% and 14.85% vs. 15.2%). In total, Energy, Utilities, and Consumer Defensive also make up 0.14% less of the fund’s holdings compared to MDY (9.42% vs. 9.56%).
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%.
| MDY Holdings | Weight |
| Bio-Techne Corp | 0.75% |
| Molina Healthcare Inc | 0.63% |
| Cognex Corp | 0.63% |
| Fair Isaac Corp | 0.62% |
| XPO Logistics Inc | 0.61% |
| SolarEdge Technologies Inc | 0.61% |
| Signature Bank | 0.6% |
| Graco Inc | 0.55% |
| Camden Property Trust | 0.55% |
| FactSet Research Systems Inc | 0.54% |
MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.
SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.
Risk Analysis
| IJH | MDY | |
| Mean Return | 1.13 | 1.08 |
| R-squared | 86.39 | 86.66 |
| Std. Deviation | 16.8 | 16.83 |
| Alpha | -4.01 | -4.1 |
| Beta | 1.15 | 1.15 |
| Sharpe Ratio | 0.77 | 0.73 |
| Treynor Ratio | 10.55 | 9.97 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Treynor Ratio of 10.55 with a Sharpe Ratio of 0.77 and a Beta of 1.15. Its Mean Return is 1.13 while IJH’s Alpha is -4.01. Furthermore, the fund has a R-squared of 86.39 and a Standard Deviation of 16.8.
The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Sharpe Ratio of 0.73 with a Mean Return of 1.08 and a Beta of 1.15. Its Treynor Ratio is 9.97 while MDY’s Standard Deviation is 16.83. Furthermore, the fund has a Alpha of -4.1 and a R-squared of 86.66.
IJH’s Mean Return is 0.05 points higher than that of MDY and its R-squared is 0.27 points lower. With a Standard Deviation of 16.8, IJH is slightly less volatile than MDY. The Alpha and Beta of IJH are 0.09 points higher and 0.00 points lower than MDY’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | MDY |
| 2020 | 13.61% | 13.51% |
| 2019 | 26.14% | 25.86% |
| 2018 | -11.14% | -11.28% |
| 2017 | 16.19% | 15.89% |
| 2016 | 20.63% | 20.33% |
| 2015 | -2.23% | -2.4% |
| 2014 | 9.64% | 9.42% |
| 2013 | 33.4% | 33.08% |
| 2012 | 17.76% | 17.58% |
| 2011 | -1.89% | -1.99% |
| 2010 | 26.38% | 26.17% |
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 MDY, returning 33.08% on an annual basis. The poorest year for MDY in the last ten years was 2018, with a yield of -11.28%. Most years the SPDR S&P MIDCAP 400 ETF Trust has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.51%, 15.89%, and 17.58% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| MDY | $10,000 | $36,524 | 13.29% |
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 MDY, the end total would have been $36,524. This equates to a $26,524 profit over 11 years and a compound annual growth rate (CAGR) of 13.29%.
IJH’s CAGR is 0.21 percentage points higher than that of MDY and as a result, would have yielded $742 more on a $10,000 investment. Thus, IJH outperformed MDY by 0.21% annually.
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