The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Small-Cap Index Fund ETF Shares (VB) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VB is a Vanguard Small Blend fund. So, what’s the difference between IJH and VB? And which fund is better?
IJH and VB have the same expense ratio: 0.05%. IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided lower returns than VB over the past ten years.
In this article, we’ll compare IJH vs. VB. We’ll look at portfolio growth and risk metrics, as well as at their industry exposure and fund composition. Moreover, I’ll also discuss IJH’s and VB’s performance, holdings, and annual returns and examine how these affect their overall returns.
Summary
| IJH | VB | |
| Name | iShares Core S&P Mid-Cap ETF | Vanguard Small-Cap Index Fund ETF Shares |
| Category | Mid-Cap Blend | Small Blend |
| Issuer | iShares | Vanguard |
| AUM | 63.4B | 137.72B |
| Avg. Return | 13.50% | 14.25% |
| Div. Yield | 1.07% | 1.14% |
| Expense Ratio | 0.05% | 0.05% |
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 Vanguard Small-Cap Index Fund ETF Shares (VB) is a Small Blend fund that is issued by Vanguard. It currently has 137.72B total assets under management and has yielded an average annual return of 14.25% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.05%.
IJH’s dividend yield is 0.07% lower than that of VB (1.07% vs. 1.14%). Also, IJH yielded on average 0.75% less per year over the past decade (13.50% vs. 14.25%). IJH and VB have the same expense ratio: 0.05%.
Fund Composition
Industry Exposure
| IJH | VB | |
| Technology | 14.81% | 16.85% |
| Industrials | 18.09% | 16.11% |
| Energy | 2.5% | 3.67% |
| Communication Services | 1.57% | 2.4% |
| Utilities | 2.9% | 2.19% |
| Healthcare | 10.89% | 14.34% |
| Consumer Defensive | 4.02% | 4.14% |
| Real Estate | 10.04% | 9.56% |
| Financial Services | 14.85% | 13.06% |
| Consumer Cyclical | 14.91% | 13.03% |
| Basic Materials | 5.42% | 4.63% |
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 Vanguard Small-Cap Index Fund ETF Shares (VB) has the most exposure to the Technology sector at 16.85%. This is followed by Industrials and Healthcare at 16.11% and 14.34% respectively. Communication Services (2.4%), Energy (3.67%), and Consumer Defensive (4.14%) only make up 10.21% of the fund’s total assets.
VB’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Consumer Cyclical, Financial Services, and Healthcare stocks at 4.63%, 9.56%, 13.03%, 13.06%, and 14.34%.
IJH is 1.98% more exposed to the Industrials sector than VB (18.09% vs 16.11%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 1.88% higher and 1.79% higher respectively (14.91% vs. 13.03% and 14.85% vs. 13.06%). In total, Energy, Utilities, and Consumer Defensive also make up 0.58% less of the fund’s holdings compared to VB (9.42% vs. 10.00%).
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%.
| VB Holdings | Weight |
| Charles River Laboratories International Inc | 0.34% |
| Pool Corp | 0.32% |
| Bio-Techne Corp | 0.32% |
| Avantor Inc | 0.32% |
| PerkinElmer Inc | 0.31% |
| Diamondback Energy Inc | 0.31% |
| VICI Properties Inc Ordinary Shares | 0.3% |
| IDEX Corp | 0.3% |
| Entegris Inc | 0.3% |
| Novavax Inc | 0.29% |
VB’s Top Holdings are Charles River Laboratories International Inc, Pool Corp, Bio-Techne Corp, Avantor Inc, and PerkinElmer Inc at 0.34%, 0.32%, 0.32%, 0.32%, and 0.31%.
Diamondback Energy Inc (0.31%), VICI Properties Inc Ordinary Shares (0.3%), and IDEX Corp (0.3%) have a slightly smaller but still significant weight. Entegris Inc and Novavax Inc are also represented in the VB’s holdings at 0.3% and 0.29%.
Risk Analysis
| IJH | VB | |
| Mean Return | 1.13 | 1.15 |
| R-squared | 86.39 | 85.03 |
| Std. Deviation | 16.8 | 17.82 |
| Alpha | -4.01 | -4.02 |
| Beta | 1.15 | 1.21 |
| Sharpe Ratio | 0.77 | 0.74 |
| Treynor Ratio | 10.55 | 10.15 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Alpha of -4.01 with a Treynor Ratio of 10.55 and a Beta of 1.15. 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 Standard Deviation of 16.8.
The Vanguard Small-Cap Index Fund ETF Shares (VB) has a Beta of 1.21 with a Sharpe Ratio of 0.74 and a Mean Return of 1.15. Its Alpha is -4.02 while VB’s Treynor Ratio is 10.15. Furthermore, the fund has a R-squared of 85.03 and a Standard Deviation of 17.82.
IJH’s Mean Return is 0.02 points lower than that of VB and its R-squared is 1.36 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than VB. The Alpha and Beta of IJH are 0.01 points higher and 0.06 points lower than VB’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | VB |
| 2020 | 13.61% | 19.08% |
| 2019 | 26.14% | 27.37% |
| 2018 | -11.14% | -9.3% |
| 2017 | 16.19% | 16.24% |
| 2016 | 20.63% | 18.31% |
| 2015 | -2.23% | -3.65% |
| 2014 | 9.64% | 7.51% |
| 2013 | 33.4% | 37.8% |
| 2012 | 17.76% | 18.22% |
| 2011 | -1.89% | -2.68% |
| 2010 | 26.38% | 27.89% |
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 VB, returning 37.8% on an annual basis. The poorest year for VB in the last ten years was 2018, with a yield of -9.3%. Most years the Vanguard Small-Cap Index Fund ETF Shares has given investors modest returns, such as in 2017, 2012, and 2016, when gains were 16.24%, 18.22%, and 18.31% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| VB | $10,000 | $39,734 | 14.25% |
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 VB, the end total would have been $39,734. This equates to a $29,734 profit over 11 years and a compound annual growth rate (CAGR) of 14.25%.
IJH’s CAGR is 0.75 percentage points lower than that of VB and as a result, would have yielded $2,468 less on a $10,000 investment. Thus, IJH performed worse than VB by 0.75% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
