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IJH vs. SDY: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the SPDR S&P Dividend ETF (SDY) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and SDY is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IJH and SDY? And which fund is better?

The expense ratio of IJH is 0.30 percentage points lower than SDY’s (0.05% vs. 0.35%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than SDY over the past ten years.

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

Summary

IJHSDY
NameiShares Core S&P Mid-Cap ETFSPDR S&P Dividend ETF
CategoryMid-Cap BlendLarge Value
IssueriSharesSPDR State Street Global Advisors
AUM63.4B19.67B
Avg. Return13.50%12.44%
Div. Yield1.07%2.65%
Expense Ratio0.05%0.35%

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 Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.

IJH’s dividend yield is 1.58% lower than that of SDY (1.07% vs. 2.65%). Also, IJH yielded on average 1.06% more per year over the past decade (13.50% vs. 12.44%). The expense ratio of IJH is 0.30 percentage points lower than SDY’s (0.05% vs. 0.35%).

Fund Composition

Industry Exposure

IJH vs. SDY - Industry Exposure

IJHSDY
Technology14.81%2.0%
Industrials18.09%15.89%
Energy2.5%5.95%
Communication Services1.57%4.64%
Utilities2.9%12.14%
Healthcare10.89%7.35%
Consumer Defensive4.02%14.01%
Real Estate10.04%6.57%
Financial Services14.85%16.32%
Consumer Cyclical14.91%8.68%
Basic Materials5.42%6.45%

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 Dividend ETF (SDY) has the most exposure to the Financial Services sector at 16.32%. This is followed by Industrials and Consumer Defensive at 15.89% and 14.01% respectively. Communication Services (4.64%), Energy (5.95%), and Basic Materials (6.45%) only make up 17.04% of the fund’s total assets.

SDY’s mid-section with moderate exposure is comprised of Real Estate, Healthcare, Consumer Cyclical, Utilities, and Consumer Defensive stocks at 6.57%, 7.35%, 8.68%, 12.14%, and 14.01%.

IJH is 2.20% more exposed to the Industrials sector than SDY (18.09% vs 15.89%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 6.23% higher and 1.47% lower respectively (14.91% vs. 8.68% and 14.85% vs. 16.32%). In total, Energy, Utilities, and Consumer Defensive also make up 22.68% less of the fund’s holdings compared to SDY (9.42% vs. 32.10%).

Holdings

IJH - Holdings

IJH HoldingsWeight
Bio-Techne Corp0.8%
Molina Healthcare Inc0.68%
Cognex Corp0.68%
Fair Isaac Corp0.64%
Camden Property Trust0.62%
XPO Logistics Inc0.6%
Masimo Corp0.59%
SolarEdge Technologies Inc0.57%
FactSet Research Systems Inc0.57%
Graco Inc0.56%

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%.

SDY - Holdings

SDY HoldingsWeight
Exxon Mobil Corp2.81%
AT&T Inc2.5%
South Jersey Industries Inc2.22%
Chevron Corp2.02%
International Business Machines Corp2.0%
AbbVie Inc1.93%
National Retail Properties Inc1.86%
Federal Realty Investment Trust1.77%
Realty Income Corp1.7%
Old Republic International Corp1.65%

SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.

AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.

Risk Analysis

IJHSDY
Mean Return1.131.07
R-squared86.3983.62
Std. Deviation16.812.9
Alpha-4.01-0.1
Beta1.150.87
Sharpe Ratio0.770.95
Treynor Ratio10.5513.94

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

The SPDR S&P Dividend ETF (SDY) has a Beta of 0.87 with a Mean Return of 1.07 and a Sharpe Ratio of 0.95. Its R-squared is 83.62 while SDY’s Alpha is -0.1. Furthermore, the fund has a Treynor Ratio of 13.94 and a Standard Deviation of 12.9.

IJH’s Mean Return is 0.06 points higher than that of SDY and its R-squared is 2.77 points higher. With a Standard Deviation of 16.8, IJH is slightly more volatile than SDY. The Alpha and Beta of IJH are 3.91 points lower and 0.28 points higher than SDY’s Alpha and Beta.

Performance

Annual Returns

IJH vs. SDY - Annual Returns

YearIJHSDY
202013.61%1.78%
201926.14%23.37%
2018-11.14%-2.73%
201716.19%15.84%
201620.63%20.17%
2015-2.23%-0.7%
20149.64%13.8%
201333.4%30.09%
201217.76%11.51%
2011-1.89%7.28%
201026.38%16.41%

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 SDY, returning 30.09% on an annual basis. The poorest year for SDY in the last ten years was 2018, with a yield of -2.73%. Most years the SPDR S&P Dividend ETF has given investors modest returns, such as in 2012, 2014, and 2017, when gains were 11.51%, 13.8%, and 15.84% respectively.

Portfolio Growth

IJH vs. SDY - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IJH$10,000$37,26613.50%
SDY$10,000$34,80612.44%

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 SDY, the end total would have been $34,806. This equates to a $24,806 profit over 11 years and a compound annual growth rate (CAGR) of 12.44%.

IJH’s CAGR is 1.06 percentage points higher than that of SDY and as a result, would have yielded $2,460 more on a $10,000 investment. Thus, IJH outperformed SDY by 1.06% annually.


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