IJH vs. VIG: What’s The Difference?

The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VIG is a Vanguard Large Blend fund. So, what’s the difference between IJH and VIG? And which fund is better?

The expense ratio of IJH is 0.01 percentage points lower than VIG’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 VIG over the past ten years.

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

Summary

IJH VIG
Name iShares Core S&P Mid-Cap ETF Vanguard Dividend Appreciation Index Fund ETF Shares
Category Mid-Cap Blend Large Blend
Issuer iShares Vanguard
AUM 63.4B 71.92B
Avg. Return 13.50% 13.35%
Div. Yield 1.07% 1.56%
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 Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is a Large Blend fund that is issued by Vanguard. It currently has 71.92B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.56% with an expense ratio of 0.06%.

IJH’s dividend yield is 0.49% lower than that of VIG (1.07% vs. 1.56%). Also, IJH yielded on average 0.15% more per year over the past decade (13.50% vs. 13.35%). The expense ratio of IJH is 0.01 percentage points lower than VIG’s (0.05% vs. 0.06%).

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Fund Composition

Industry Exposure

IJH vs. VIG - Industry Exposure

IJH VIG
Technology 14.81% 14.93%
Industrials 18.09% 17.23%
Energy 2.5% 0.0%
Communication Services 1.57% 2.86%
Utilities 2.9% 2.81%
Healthcare 10.89% 15.52%
Consumer Defensive 4.02% 15.32%
Real Estate 10.04% 0.0%
Financial Services 14.85% 17.18%
Consumer Cyclical 14.91% 10.47%
Basic Materials 5.42% 3.67%

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 Dividend Appreciation Index Fund ETF Shares (VIG) has the most exposure to the Industrials sector at 17.23%. This is followed by Financial Services and Healthcare at 17.18% and 15.52% respectively. Energy (0.0%), Utilities (2.81%), and Communication Services (2.86%) only make up 5.67% of the fund’s total assets.

VIG’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Cyclical, Technology, Consumer Defensive, and Healthcare stocks at 3.67%, 10.47%, 14.93%, 15.32%, and 15.52%.

IJH is 0.86% more exposed to the Industrials sector than VIG (18.09% vs 17.23%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 4.44% higher and 2.33% lower respectively (14.91% vs. 10.47% and 14.85% vs. 17.18%). In total, Energy, Utilities, and Consumer Defensive also make up 8.71% less of the fund’s holdings compared to VIG (9.42% vs. 18.13%).

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%.

VIG - Holdings

VIG Holdings Weight
Microsoft Corp 4.19%
JPMorgan Chase & Co 3.8%
Johnson & Johnson 3.67%
Walmart Inc 3.38%
Visa Inc Class A 3.22%
UnitedHealth Group Inc 3.22%
The Home Depot Inc 2.91%
Procter & Gamble Co 2.82%
Comcast Corp Class A 2.21%
Coca-Cola Co 1.98%

VIG’s Top Holdings are Microsoft Corp, JPMorgan Chase & Co, Johnson & Johnson, Walmart Inc, and Visa Inc Class A at 4.19%, 3.8%, 3.67%, 3.38%, and 3.22%.

UnitedHealth Group Inc (3.22%), The Home Depot Inc (2.91%), and Procter & Gamble Co (2.82%) have a slightly smaller but still significant weight. Comcast Corp Class A and Coca-Cola Co are also represented in the VIG’s holdings at 2.21% and 1.98%.

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Risk Analysis

IJH VIG
Mean Return 1.13 1.09
R-squared 86.39 92.2
Std. Deviation 16.8 12.25
Alpha -4.01 0.12
Beta 1.15 0.86
Sharpe Ratio 0.77 1.01
Treynor Ratio 10.55 14.33

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

The Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) has a Alpha of 0.12 with a Beta of 0.86 and a Mean Return of 1.09. Its Standard Deviation is 12.25 while VIG’s Treynor Ratio is 14.33. Furthermore, the fund has a R-squared of 92.2 and a Sharpe Ratio of 1.01.

IJH’s Mean Return is 0.04 points higher than that of VIG and its R-squared is 5.81 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than VIG. The Alpha and Beta of IJH are 4.13 points lower and 0.29 points higher than VIG’s Alpha and Beta.

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Performance

Annual Returns

IJH vs. VIG - Annual Returns

Year IJH VIG
2020 13.61% 15.46%
2019 26.14% 29.71%
2018 -11.14% -2.02%
2017 16.19% 22.22%
2016 20.63% 11.84%
2015 -2.23% -1.95%
2014 9.64% 10.06%
2013 33.4% 28.99%
2012 17.76% 11.61%
2011 -1.89% 6.21%
2010 26.38% 14.67%

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 2019 was the strongest year for VIG, returning 29.71% on an annual basis. The poorest year for VIG in the last ten years was 2018, with a yield of -2.02%. Most years the Vanguard Dividend Appreciation Index Fund ETF Shares has given investors modest returns, such as in 2012, 2016, and 2010, when gains were 11.61%, 11.84%, and 14.67% respectively.

Portfolio Growth

IJH vs. VIG - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJH $10,000 $37,266 13.50%
VIG $10,000 $37,951 13.35%

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 VIG, the end total would have been $37,951. This equates to a $27,951 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IJH’s CAGR is 0.15 percentage points higher than that of VIG and as a result, would have yielded $685 less on a $10,000 investment. Thus, IJH outperformed VIG by 0.15% annually.


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