IJH vs. SCHF: What’s The Difference?

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

The expense ratio of IJH is 0.01 percentage points lower than SCHF’s (0.05% vs. 0.06%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than SCHF over the past ten years.

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

Summary

IJH SCHF
Name iShares Core S&P Mid-Cap ETF Schwab International Equity ETF
Category Mid-Cap Blend Foreign Large Blend
Issuer iShares Schwab ETFs
AUM 63.4B 26.99B
Avg. Return 13.50% 6.43%
Div. Yield 1.07% 2.16%
Expense Ratio 0.05% 0.06%

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 International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

IJH’s dividend yield is 1.09% lower than that of SCHF (1.07% vs. 2.16%). Also, IJH yielded on average 7.07% more per year over the past decade (13.50% vs. 6.43%). The expense ratio of IJH is 0.01 percentage points lower than SCHF’s (0.05% vs. 0.06%).

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Fund Composition

Industry Exposure

IJH vs. SCHF - Industry Exposure

IJH SCHF
Technology 14.81% 11.55%
Industrials 18.09% 14.86%
Energy 2.5% 4.23%
Communication Services 1.57% 5.65%
Utilities 2.9% 3.09%
Healthcare 10.89% 11.05%
Consumer Defensive 4.02% 9.41%
Real Estate 10.04% 3.17%
Financial Services 14.85% 17.85%
Consumer Cyclical 14.91% 10.87%
Basic Materials 5.42% 8.26%

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 International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

IJH is 3.23% more exposed to the Industrials sector than SCHF (18.09% vs 14.86%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 4.04% higher and 3.00% lower respectively (14.91% vs. 10.87% and 14.85% vs. 17.85%). In total, Energy, Utilities, and Consumer Defensive also make up 7.31% less of the fund’s holdings compared to SCHF (9.42% vs. 16.73%).

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%.

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

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Risk Analysis

IJH SCHF
Mean Return 1.13 0.58
R-squared 86.39 98.16
Std. Deviation 16.8 15.08
Alpha -4.01 0.53
Beta 1.15 0.99
Sharpe Ratio 0.77 0.42
Treynor Ratio 10.55 5.39

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

The Schwab International Equity ETF (SCHF) has a Sharpe Ratio of 0.42 with a Treynor Ratio of 5.39 and a Standard Deviation of 15.08. Its Mean Return is 0.58 while SCHF’s Beta is 0.99. Furthermore, the fund has a Alpha of 0.53 and a R-squared of 98.16.

IJH’s Mean Return is 0.55 points higher than that of SCHF and its R-squared is 11.77 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than SCHF. The Alpha and Beta of IJH are 4.54 points lower and 0.16 points higher than SCHF’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. SCHF - Annual Returns

Year IJH SCHF
2020 13.61% 9.86%
2019 26.14% 22.15%
2018 -11.14% -14.39%
2017 16.19% 25.83%
2016 20.63% 2.88%
2015 -2.23% -2.44%
2014 9.64% -4.44%
2013 33.4% 20.03%
2012 17.76% 17.12%
2011 -1.89% -12.32%
2010 26.38% 8.6%

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 SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

IJH vs. SCHF - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $29,487 13.50%
SCHF $10,000 $17,089 6.43%

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 SCHF, the end total would have been $17,089. This equates to a $7,089 profit over 10 years and a compound annual growth rate (CAGR) of 6.43%.

IJH’s CAGR is 7.07 percentage points higher than that of SCHF and as a result, would have yielded $12,398 more on a $10,000 investment. Thus, IJH outperformed SCHF by 7.07% annually.


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