The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Large-Cap Index Fund ETF Shares (VV) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VV is a Vanguard Large Blend fund. So, what’s the difference between IJH and VV? And which fund is better?
The expense ratio of IJH is 0.01 percentage points higher than VV’s (0.05% vs. 0.04%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided lower returns than VV over the past ten years.
In this article, we’ll compare IJH vs. VV. We’ll look at portfolio growth and fund composition, as well as at their industry exposure and risk metrics. Moreover, I’ll also discuss IJH’s and VV’s performance, annual returns, and holdings and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||Vanguard Large-Cap Index Fund ETF Shares|
|Category||Mid-Cap Blend||Large Blend|
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 Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.
IJH’s dividend yield is 0.19% lower than that of VV (1.07% vs. 1.26%). Also, IJH yielded on average 1.25% less per year over the past decade (13.50% vs. 14.75%). The expense ratio of IJH is 0.01 percentage points higher than VV’s (0.05% vs. 0.04%).
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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 Large-Cap Index Fund ETF Shares (VV) has the most exposure to the Technology sector at 25.38%. This is followed by Financial Services and Healthcare at 13.82% and 13.22% respectively. Utilities (2.35%), Energy (2.62%), and Real Estate (2.7%) only make up 7.67% of the fund’s total assets.
VV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Consumer Cyclical, Communication Services, and Healthcare stocks at 6.06%, 8.39%, 11.65%, 11.68%, and 13.22%.
IJH is 9.70% more exposed to the Industrials sector than VV (18.09% vs 8.39%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 3.26% higher and 1.03% higher respectively (14.91% vs. 11.65% and 14.85% vs. 13.82%). In total, Energy, Utilities, and Consumer Defensive also make up 1.61% less of the fund’s holdings compared to VV (9.42% vs. 11.03%).
|Molina Healthcare Inc||0.68%|
|Fair Isaac Corp||0.64%|
|Camden Property Trust||0.62%|
|XPO Logistics Inc||0.6%|
|SolarEdge Technologies Inc||0.57%|
|FactSet Research Systems Inc||0.57%|
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%.
|Facebook Inc Class A||2.19%|
|Alphabet Inc Class A||1.93%|
|Alphabet Inc Class C||1.81%|
|Berkshire Hathaway Inc Class B||1.3%|
|JPMorgan Chase & Co||1.24%|
VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.
Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.
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The iShares Core S&P Mid-Cap ETF (IJH) has a Beta of 1.15 with a R-squared of 86.39 and a Mean Return of 1.13. Its Standard Deviation is 16.8 while IJH’s Alpha is -4.01. Furthermore, the fund has a Sharpe Ratio of 0.77 and a Treynor Ratio of 10.55.
The Vanguard Large-Cap Index Fund ETF Shares (VV) has a R-squared of 99.86 with a Beta of 1.01 and a Standard Deviation of 13.75. Its Mean Return is 1.24 while VV’s Sharpe Ratio is 1.04. Furthermore, the fund has a Treynor Ratio of 14.14 and a Alpha of -0.08.
IJH’s Mean Return is 0.11 points lower than that of VV and its R-squared is 13.47 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than VV. The Alpha and Beta of IJH are 3.93 points lower and 0.14 points higher than VV’s Alpha and Beta.
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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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 VV, the end total would have been $42,970. This equates to a $32,970 profit over 11 years and a compound annual growth rate (CAGR) of 14.75%.
IJH’s CAGR is 1.25 percentage points lower than that of VV and as a result, would have yielded $5,704 less on a $10,000 investment. Thus, IJH performed worse than VV by 1.25% annually.
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