The iShares Core S&P Mid-Cap ETF (IJH) and the Schwab U.S. Small-Cap ETF (SCHA) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and SCHA is a Schwab ETFs Small Blend fund. So, what’s the difference between IJH and SCHA? And which fund is better?
The expense ratio of IJH is 0.01 percentage points higher than SCHA’s (0.05% vs. 0.04%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided higher returns than SCHA over the past ten years.
In this article, we’ll compare IJH vs. SCHA. We’ll look at portfolio growth and fund composition, as well as at their holdings and performance. Moreover, I’ll also discuss IJH’s and SCHA’s risk metrics, industry exposure, and annual returns and examine how these affect their overall returns.
Summary
| IJH | SCHA | |
| Name | iShares Core S&P Mid-Cap ETF | Schwab U.S. Small-Cap ETF |
| Category | Mid-Cap Blend | Small Blend |
| Issuer | iShares | Schwab ETFs |
| AUM | 63.4B | 16.51B |
| Avg. Return | 13.50% | 12.62% |
| Div. Yield | 1.07% | 0.98% |
| Expense Ratio | 0.05% | 0.04% |
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 Schwab U.S. Small-Cap ETF (SCHA) is a Small Blend fund that is issued by Schwab ETFs. It currently has 16.51B total assets under management and has yielded an average annual return of 12.62% over the past 10 years. The fund has a dividend yield of 0.98% with an expense ratio of 0.04%.
IJH’s dividend yield is 0.09% higher than that of SCHA (1.07% vs. 0.98%). Also, IJH yielded on average 0.88% more per year over the past decade (13.50% vs. 12.62%). The expense ratio of IJH is 0.01 percentage points higher than SCHA’s (0.05% vs. 0.04%).
Fund Composition
Industry Exposure
| IJH | SCHA | |
| Technology | 14.81% | 14.91% |
| Industrials | 18.09% | 15.37% |
| Energy | 2.5% | 3.35% |
| Communication Services | 1.57% | 3.5% |
| Utilities | 2.9% | 1.83% |
| Healthcare | 10.89% | 16.5% |
| Consumer Defensive | 4.02% | 3.75% |
| Real Estate | 10.04% | 7.83% |
| Financial Services | 14.85% | 14.49% |
| Consumer Cyclical | 14.91% | 14.48% |
| Basic Materials | 5.42% | 3.98% |
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 Schwab U.S. Small-Cap ETF (SCHA) has the most exposure to the Healthcare sector at 16.5%. This is followed by Industrials and Technology at 15.37% and 14.91% respectively. Energy (3.35%), Communication Services (3.5%), and Consumer Defensive (3.75%) only make up 10.60% of the fund’s total assets.
SCHA’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Consumer Cyclical, Financial Services, and Technology stocks at 3.98%, 7.83%, 14.48%, 14.49%, and 14.91%.
IJH is 2.72% more exposed to the Industrials sector than SCHA (18.09% vs 15.37%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 0.43% higher and 0.36% higher respectively (14.91% vs. 14.48% and 14.85% vs. 14.49%). In total, Energy, Utilities, and Consumer Defensive also make up 0.49% more of the fund’s holdings compared to SCHA (9.42% vs. 8.93%).
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%.
| SCHA Holdings | Weight |
| AMC Entertainment Holdings Inc Class A | 0.67% |
| Caesars Entertainment Inc | 0.51% |
| Cloudflare Inc | 0.48% |
| NovoCure Ltd | 0.45% |
| Plug Power Inc | 0.41% |
| 10x Genomics Inc Ordinary Shares – Class A | 0.34% |
| GameStop Corp Class A | 0.28% |
| RH | 0.27% |
| Penn National Gaming Inc | 0.27% |
| Axon Enterprise Inc | 0.27% |
SCHA’s Top Holdings are AMC Entertainment Holdings Inc Class A, Caesars Entertainment Inc, Cloudflare Inc, NovoCure Ltd, and Plug Power Inc at 0.67%, 0.51%, 0.48%, 0.45%, and 0.41%.
10x Genomics Inc Ordinary Shares – Class A (0.34%), GameStop Corp Class A (0.28%), and RH (0.27%) have a slightly smaller but still significant weight. Penn National Gaming Inc and Axon Enterprise Inc are also represented in the SCHA’s holdings at 0.27% and 0.27%.
Risk Analysis
| IJH | SCHA | |
| Mean Return | 1.13 | 1.14 |
| R-squared | 86.39 | 82.26 |
| Std. Deviation | 16.8 | 18.68 |
| Alpha | -4.01 | -4.65 |
| Beta | 1.15 | 1.25 |
| Sharpe Ratio | 0.77 | 0.7 |
| Treynor Ratio | 10.55 | 9.62 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Alpha of -4.01 with a Beta of 1.15 and a Standard Deviation of 16.8. Its Sharpe Ratio is 0.77 while IJH’s Mean Return is 1.13. Furthermore, the fund has a R-squared of 86.39 and a Treynor Ratio of 10.55.
The Schwab U.S. Small-Cap ETF (SCHA) has a Mean Return of 1.14 with a Standard Deviation of 18.68 and a Beta of 1.25. Its Alpha is -4.65 while SCHA’s R-squared is 82.26. Furthermore, the fund has a Treynor Ratio of 9.62 and a Sharpe Ratio of 0.7.
IJH’s Mean Return is 0.01 points lower than that of SCHA and its R-squared is 4.13 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than SCHA. The Alpha and Beta of IJH are 0.64 points higher and 0.10 points lower than SCHA’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | SCHA |
| 2020 | 13.61% | 19.35% |
| 2019 | 26.14% | 26.54% |
| 2018 | -11.14% | -11.75% |
| 2017 | 16.19% | 15.04% |
| 2016 | 20.63% | 19.88% |
| 2015 | -2.23% | -4.24% |
| 2014 | 9.64% | 6.53% |
| 2013 | 33.4% | 39.59% |
| 2012 | 17.76% | 18.24% |
| 2011 | -1.89% | -2.95% |
| 2010 | 26.38% | 28.31% |
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 SCHA, returning 39.59% on an annual basis. The poorest year for SCHA in the last ten years was 2018, with a yield of -11.75%. Most years the Schwab U.S. Small-Cap ETF has given investors modest returns, such as in 2017, 2012, and 2020, when gains were 15.04%, 18.24%, and 19.35% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $29,487 | 13.50% |
| SCHA | $10,000 | $30,035 | 12.62% |
A $10,000 investment in IJH would have resulted in a final balance of $29,487. This is a profit of $19,487 over 10 years and amounts to a compound annual growth rate (CAGR) of 13.50%.
With a $10,000 investment in SCHA, the end total would have been $30,035. This equates to a $20,035 profit over 10 years and a compound annual growth rate (CAGR) of 12.62%.
IJH’s CAGR is 0.88 percentage points higher than that of SCHA and as a result, would have yielded $548 less on a $10,000 investment. Thus, IJH outperformed SCHA by 0.88% annually.
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