The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between IJH and VOE? And which fund is better?
The expense ratio of IJH is 0.02 percentage points lower than VOE’s (0.05% vs. 0.07%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than VOE over the past ten years.
In this article, we’ll compare IJH vs. VOE. We’ll look at annual returns and holdings, as well as at their performance and risk metrics. Moreover, I’ll also discuss IJH’s and VOE’s industry exposure, portfolio growth, and fund composition and examine how these affect their overall returns.
Summary
| IJH | VOE | |
| Name | iShares Core S&P Mid-Cap ETF | Vanguard Mid-Cap Value Index Fund ETF Shares |
| Category | Mid-Cap Blend | Mid-Cap Value |
| Issuer | iShares | Vanguard |
| AUM | 63.4B | 26.78B |
| Avg. Return | 13.50% | 12.52% |
| Div. Yield | 1.07% | 1.87% |
| Expense Ratio | 0.05% | 0.07% |
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 Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.
IJH’s dividend yield is 0.80% lower than that of VOE (1.07% vs. 1.87%). Also, IJH yielded on average 0.98% more per year over the past decade (13.50% vs. 12.52%). The expense ratio of IJH is 0.02 percentage points lower than VOE’s (0.05% vs. 0.07%).
Fund Composition
Industry Exposure
| IJH | VOE | |
| Technology | 14.81% | 9.85% |
| Industrials | 18.09% | 9.4% |
| Energy | 2.5% | 5.69% |
| Communication Services | 1.57% | 5.27% |
| Utilities | 2.9% | 10.93% |
| Healthcare | 10.89% | 7.04% |
| Consumer Defensive | 4.02% | 4.85% |
| Real Estate | 10.04% | 11.48% |
| Financial Services | 14.85% | 18.26% |
| Consumer Cyclical | 14.91% | 11.8% |
| Basic Materials | 5.42% | 5.44% |
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 Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.
VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.
IJH is 8.69% more exposed to the Industrials sector than VOE (18.09% vs 9.4%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 3.11% higher and 3.41% lower respectively (14.91% vs. 11.8% and 14.85% vs. 18.26%). In total, Energy, Utilities, and Consumer Defensive also make up 12.05% less of the fund’s holdings compared to VOE (9.42% vs. 21.47%).
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%.
| VOE Holdings | Weight |
| Carrier Global Corp Ordinary Shares | 1.28% |
| International Flavors & Fragrances Inc | 1.13% |
| Motorola Solutions Inc | 1.12% |
| Discover Financial Services | 1.09% |
| Welltower Inc | 1.05% |
| Corteva Inc | 0.99% |
| Valero Energy Corp | 0.97% |
| Corning Inc | 0.95% |
| Willis Towers Watson PLC | 0.9% |
| D.R. Horton Inc | 0.89% |
VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.
Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.
Risk Analysis
| IJH | VOE | |
| Mean Return | 1.13 | 1.05 |
| R-squared | 86.39 | 88.76 |
| Std. Deviation | 16.8 | 15.98 |
| Alpha | -4.01 | -3.77 |
| Beta | 1.15 | 1.11 |
| Sharpe Ratio | 0.77 | 0.75 |
| Treynor Ratio | 10.55 | 10.19 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Standard Deviation of 16.8 with a Treynor Ratio of 10.55 and a Sharpe Ratio of 0.77. Its Mean Return is 1.13 while IJH’s Beta is 1.15. Furthermore, the fund has a Alpha of -4.01 and a R-squared of 86.39.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Treynor Ratio of 10.19 with a Beta of 1.11 and a R-squared of 88.76. Its Sharpe Ratio is 0.75 while VOE’s Mean Return is 1.05. Furthermore, the fund has a Alpha of -3.77 and a Standard Deviation of 15.98.
IJH’s Mean Return is 0.08 points higher than that of VOE and its R-squared is 2.37 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than VOE. The Alpha and Beta of IJH are 0.24 points lower and 0.04 points higher than VOE’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | VOE |
| 2020 | 13.61% | 2.5% |
| 2019 | 26.14% | 27.98% |
| 2018 | -11.14% | -12.41% |
| 2017 | 16.19% | 17.05% |
| 2016 | 20.63% | 15.26% |
| 2015 | -2.23% | -1.8% |
| 2014 | 9.64% | 13.98% |
| 2013 | 33.4% | 37.65% |
| 2012 | 17.76% | 16.04% |
| 2011 | -1.89% | -0.32% |
| 2010 | 26.38% | 21.83% |
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 2013 was the strongest year for VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| VOE | $10,000 | $33,655 | 12.52% |
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 VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.
IJH’s CAGR is 0.98 percentage points higher than that of VOE and as a result, would have yielded $3,611 more on a $10,000 investment. Thus, IJH outperformed VOE by 0.98% annually.
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