IJH vs. SCHG: What’s The Difference?

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

The expense ratio of IJH is 0.01 percentage points higher than SCHG’s (0.05% vs. 0.04%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than SCHG over the past ten years.

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

Summary

IJH SCHG
Name iShares Core S&P Mid-Cap ETF Schwab U.S. Large-Cap Growth ETF
Category Mid-Cap Blend Large Growth
Issuer iShares Schwab ETFs
AUM 63.4B 15.16B
Avg. Return 13.50% 17.81%
Div. Yield 1.07% 0.43%
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. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.

IJH’s dividend yield is 0.64% higher than that of SCHG (1.07% vs. 0.43%). Also, IJH yielded on average 4.31% less per year over the past decade (13.50% vs. 17.81%). The expense ratio of IJH is 0.01 percentage points higher than SCHG’s (0.05% vs. 0.04%).

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Fund Composition

Industry Exposure

IJH vs. SCHG - Industry Exposure

IJH SCHG
Technology 14.81% 39.21%
Industrials 18.09% 3.01%
Energy 2.5% 0.2%
Communication Services 1.57% 17.07%
Utilities 2.9% 0.0%
Healthcare 10.89% 12.05%
Consumer Defensive 4.02% 2.15%
Real Estate 10.04% 1.64%
Financial Services 14.85% 7.98%
Consumer Cyclical 14.91% 15.01%
Basic Materials 5.42% 1.68%

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. Large-Cap Growth ETF (SCHG) has the most exposure to the Technology sector at 39.21%. This is followed by Communication Services and Consumer Cyclical at 17.07% and 15.01% respectively. Energy (0.2%), Real Estate (1.64%), and Basic Materials (1.68%) only make up 3.52% of the fund’s total assets.

SCHG’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 2.15%, 3.01%, 7.98%, 12.05%, and 15.01%.

IJH is 15.08% more exposed to the Industrials sector than SCHG (18.09% vs 3.01%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 0.10% lower and 6.87% higher respectively (14.91% vs. 15.01% and 14.85% vs. 7.98%). In total, Energy, Utilities, and Consumer Defensive also make up 7.07% more of the fund’s holdings compared to SCHG (9.42% vs. 2.35%).

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%.

SCHG - Holdings

SCHG Holdings Weight
Apple Inc 11.49%
Microsoft Corp 10.91%
Amazon.com Inc 7.89%
Facebook Inc A 4.45%
Alphabet Inc A 3.93%
Alphabet Inc Class C 3.82%
Tesla Inc 2.8%
NVIDIA Corp 2.67%
Visa Inc Class A 2.12%
UnitedHealth Group Inc 2.02%

SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.

Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.

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Risk Analysis

IJH SCHG
Mean Return 1.13 1.46
R-squared 86.39 92.92
Std. Deviation 16.8 14.78
Alpha -4.01 1.97
Beta 1.15 1.05
Sharpe Ratio 0.77 1.14
Treynor Ratio 10.55 16.3

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

The Schwab U.S. Large-Cap Growth ETF (SCHG) has a Treynor Ratio of 16.3 with a R-squared of 92.92 and a Mean Return of 1.46. Its Beta is 1.05 while SCHG’s Alpha is 1.97. Furthermore, the fund has a Sharpe Ratio of 1.14 and a Standard Deviation of 14.78.

IJH’s Mean Return is 0.33 points lower than that of SCHG and its R-squared is 6.53 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than SCHG. The Alpha and Beta of IJH are 5.98 points lower and 0.10 points higher than SCHG’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. SCHG - Annual Returns

Year IJH SCHG
2020 13.61% 39.13%
2019 26.14% 36.21%
2018 -11.14% -1.35%
2017 16.19% 28.04%
2016 20.63% 6.76%
2015 -2.23% 3.26%
2014 9.64% 15.74%
2013 33.4% 33.96%
2012 17.76% 17.02%
2011 -1.89% -0.67%
2010 26.38% 16.83%

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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% respectively.

Portfolio Growth

IJH vs. SCHG - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $29,487 13.50%
SCHG $10,000 $47,556 17.81%

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 SCHG, the end total would have been $47,556. This equates to a $37,556 profit over 10 years and a compound annual growth rate (CAGR) of 17.81%.

IJH’s CAGR is 4.31 percentage points lower than that of SCHG and as a result, would have yielded $18,069 less on a $10,000 investment. Thus, IJH performed worse than SCHG by 4.31% annually.


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