The iShares Core S&P Mid-Cap ETF (IJH) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and RSP is a Invesco Large Blend fund. So, what’s the difference between IJH and RSP? And which fund is better?
The expense ratio of IJH is 0.15 percentage points lower than RSP’s (0.05% vs. 0.2%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than RSP over the past ten years.
In this article, we’ll compare IJH vs. RSP. We’ll look at annual returns and industry exposure, as well as at their holdings and fund composition. Moreover, I’ll also discuss IJH’s and RSP’s performance, risk metrics, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||Invesco S&P 500 Equal Weight ETF|
|Category||Mid-Cap Blend||Large Blend|
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 Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
IJH’s dividend yield is 0.24% lower than that of RSP (1.07% vs. 1.31%). Also, IJH yielded on average 0.29% less per year over the past decade (13.50% vs. 13.79%). The expense ratio of IJH is 0.15 percentage points lower than RSP’s (0.05% vs. 0.2%).
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 Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.
RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.
IJH is 3.47% more exposed to the Industrials sector than RSP (18.09% vs 14.62%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 1.90% higher and 1.42% higher respectively (14.91% vs. 13.01% and 14.85% vs. 13.43%). In total, Energy, Utilities, and Consumer Defensive also make up 6.92% less of the fund’s holdings compared to RSP (9.42% vs. 16.34%).
|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%.
|Chipotle Mexican Grill Inc||0.27%|
|Nike Inc Class B||0.25%|
|Monolithic Power Systems Inc||0.25%|
|Enphase Energy Inc||0.25%|
|Advanced Micro Devices Inc||0.25%|
|IDEXX Laboratories Inc||0.24%|
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
The iShares Core S&P Mid-Cap ETF (IJH) has a Sharpe Ratio of 0.77 with a Alpha of -4.01 and a Treynor Ratio of 10.55. Its Mean Return is 1.13 while IJH’s Beta is 1.15. Furthermore, the fund has a Standard Deviation of 16.8 and a R-squared of 86.39.
The Invesco S&P 500 Equal Weight ETF (RSP) has a R-squared of 94.47 with a Alpha of -2.45 and a Beta of 1.1. Its Mean Return is 1.19 while RSP’s Sharpe Ratio is 0.89. Furthermore, the fund has a Treynor Ratio of 12.12 and a Standard Deviation of 15.36.
IJH’s Mean Return is 0.06 points lower than that of RSP and its R-squared is 8.08 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than RSP. The Alpha and Beta of IJH are 1.56 points lower and 0.05 points higher than RSP’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 RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% 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 RSP, the end total would have been $38,664. This equates to a $28,664 profit over 11 years and a compound annual growth rate (CAGR) of 13.79%.
IJH’s CAGR is 0.29 percentage points lower than that of RSP and as a result, would have yielded $1,398 less on a $10,000 investment. Thus, IJH performed worse than RSP by 0.29% annually.
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