The iShares Core S&P Mid-Cap ETF (IJH) and the ProShares UltraPro QQQ (TQQQ) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and TQQQ is a ProShares Trading–Leveraged Equity fund. So, what’s the difference between IJH and TQQQ? And which fund is better?
The expense ratio of IJH is 0.90 percentage points lower than TQQQ’s (0.05% vs. 0.95%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided lower returns than TQQQ over the past ten years.
In this article, we’ll compare IJH vs. TQQQ. We’ll look at industry exposure and portfolio growth, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss IJH’s and TQQQ’s performance, holdings, and fund composition and examine how these affect their overall returns.
Summary
| IJH | TQQQ | |
| Name | iShares Core S&P Mid-Cap ETF | ProShares UltraPro QQQ |
| Category | Mid-Cap Blend | Trading–Leveraged Equity |
| Issuer | iShares | ProShares |
| AUM | 63.4B | 12.41B |
| Avg. Return | 13.50% | 61.22% |
| Div. Yield | 1.07% | 0.0% |
| Expense Ratio | 0.05% | 0.95% |
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 ProShares UltraPro QQQ (TQQQ) is a Trading–Leveraged Equity fund that is issued by ProShares. It currently has 12.41B total assets under management and has yielded an average annual return of 61.22% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.95%.
IJH’s dividend yield is 1.07% higher than that of TQQQ (1.07% vs. 0.0%). Also, IJH yielded on average 47.72% less per year over the past decade (13.50% vs. 61.22%). The expense ratio of IJH is 0.90 percentage points lower than TQQQ’s (0.05% vs. 0.95%).
Fund Composition
Industry Exposure
| IJH | TQQQ | |
| Technology | 14.81% | 0.0% |
| Industrials | 18.09% | 0.0% |
| Energy | 2.5% | 0.0% |
| Communication Services | 1.57% | 0.0% |
| Utilities | 2.9% | 0.0% |
| Healthcare | 10.89% | 0.0% |
| Consumer Defensive | 4.02% | 0.0% |
| Real Estate | 10.04% | 0.0% |
| Financial Services | 14.85% | 0.0% |
| Consumer Cyclical | 14.91% | 0.0% |
| Basic Materials | 5.42% | 0.0% |
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 ProShares UltraPro QQQ (TQQQ) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
TQQQ’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
IJH is 18.09% more exposed to the Industrials sector than TQQQ (18.09% vs 0.0%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 14.91% higher and 14.85% higher respectively (14.91% vs. 0.0% and 14.85% vs. 0.0%). In total, Energy, Utilities, and Consumer Defensive also make up 9.42% more of the fund’s holdings compared to TQQQ (9.42% vs. 0.00%).
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%.
| TQQQ Holdings | Weight |
| Nasdaq 100 Index Swap Goldman Sachs International | 45.11% |
| Nasdaq 100 Index Swap Societe Generale | 44.73% |
| Nasdaq 100 Index Swap Bnp Paribas | 38.05% |
| Nasdaq 100 Index Swap Bank Of America Na | 31.53% |
| Nasdaq 100 Index Swap Citibank Na | 31.49% |
| Nasdaq 100 Index Swap Jp Morgan Securities | 26.2% |
| Apple Inc | 7.49% |
| Microsoft Corp | 6.69% |
| Nasdaq 100 Index Swap Credit Suisse International | 5.9% |
| Amazon.com Inc | 5.68% |
TQQQ’s Top Holdings are Nasdaq 100 Index Swap Goldman Sachs International, Nasdaq 100 Index Swap Societe Generale, Nasdaq 100 Index Swap Bnp Paribas, Nasdaq 100 Index Swap Bank Of America Na, and Nasdaq 100 Index Swap Citibank Na at 45.11%, 44.73%, 38.05%, 31.53%, and 31.49%.
Nasdaq 100 Index Swap Jp Morgan Securities (26.2%), Apple Inc (7.49%), and Microsoft Corp (6.69%) have a slightly smaller but still significant weight. Nasdaq 100 Index Swap Credit Suisse International and Amazon.com Inc are also represented in the TQQQ’s holdings at 5.9% and 5.68%.
Risk Analysis
| IJH | TQQQ | |
| Mean Return | 1.13 | 4.65 |
| R-squared | 86.39 | 83.64 |
| Std. Deviation | 16.8 | 50.08 |
| Alpha | -4.01 | 7.29 |
| Beta | 1.15 | 3.37 |
| Sharpe Ratio | 0.77 | 1.1 |
| Treynor Ratio | 10.55 | 15.65 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Beta of 1.15 with a Treynor Ratio of 10.55 and a Mean Return of 1.13. Its Sharpe Ratio is 0.77 while IJH’s Alpha is -4.01. Furthermore, the fund has a R-squared of 86.39 and a Standard Deviation of 16.8.
The ProShares UltraPro QQQ (TQQQ) has a Mean Return of 4.65 with a R-squared of 83.64 and a Treynor Ratio of 15.65. Its Beta is 3.37 while TQQQ’s Alpha is 7.29. Furthermore, the fund has a Standard Deviation of 50.08 and a Sharpe Ratio of 1.1.
IJH’s Mean Return is 3.52 points lower than that of TQQQ and its R-squared is 2.75 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than TQQQ. The Alpha and Beta of IJH are 11.30 points lower and 2.22 points lower than TQQQ’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | TQQQ |
| 2020 | 13.61% | 109.85% |
| 2019 | 26.14% | 133.93% |
| 2018 | -11.14% | -19.65% |
| 2017 | 16.19% | 118.65% |
| 2016 | 20.63% | 11.04% |
| 2015 | -2.23% | 17.41% |
| 2014 | 9.64% | 56.82% |
| 2013 | 33.4% | 139.98% |
| 2012 | 17.76% | 51.95% |
| 2011 | -1.89% | -7.77% |
| 2010 | 26.38% | 0.0% |
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 TQQQ, returning 139.98% on an annual basis. The poorest year for TQQQ in the last ten years was 2018, with a yield of -19.65%. Most years the ProShares UltraPro QQQ has given investors modest returns, such as in 2015, 2012, and 2014, when gains were 17.41%, 51.95%, and 56.82% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $29,487 | 13.50% |
| TQQQ | $10,000 | $593,012 | 61.22% |
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 TQQQ, the end total would have been $593,012. This equates to a $583,012 profit over 10 years and a compound annual growth rate (CAGR) of 61.22%.
IJH’s CAGR is 47.72 percentage points lower than that of TQQQ and as a result, would have yielded $563,525 less on a $10,000 investment. Thus, IJH performed worse than TQQQ by 47.72% annually.
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