The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Extended Market Index Fund ETF Shares (VXF) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VXF is a Vanguard Mid-Cap Growth fund. So, what’s the difference between IJH and VXF? And which fund is better?
The expense ratio of IJH is 0.01 percentage points lower than VXF’s (0.05% vs. 0.06%). IJH also has a higher exposure to the industrials sector and a lower standard deviation. Overall, IJH has provided lower returns than VXF over the past ten years.
In this article, we’ll compare IJH vs. VXF. We’ll look at annual returns and industry exposure, as well as at their holdings and portfolio growth. Moreover, I’ll also discuss IJH’s and VXF’s performance, fund composition, and risk metrics and examine how these affect their overall returns.
Summary
| IJH | VXF | |
| Name | iShares Core S&P Mid-Cap ETF | Vanguard Extended Market Index Fund ETF Shares |
| Category | Mid-Cap Blend | Mid-Cap Growth |
| Issuer | iShares | Vanguard |
| AUM | 63.4B | 114.53B |
| Avg. Return | 13.50% | 15.47% |
| Div. Yield | 1.07% | 1.19% |
| 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 Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.
IJH’s dividend yield is 0.12% lower than that of VXF (1.07% vs. 1.19%). Also, IJH yielded on average 1.97% less per year over the past decade (13.50% vs. 15.47%). The expense ratio of IJH is 0.01 percentage points lower than VXF’s (0.05% vs. 0.06%).
Fund Composition
Industry Exposure
| IJH | VXF | |
| Technology | 14.81% | 23.61% |
| Industrials | 18.09% | 11.31% |
| Energy | 2.5% | 2.46% |
| Communication Services | 1.57% | 7.29% |
| Utilities | 2.9% | 1.65% |
| Healthcare | 10.89% | 15.25% |
| Consumer Defensive | 4.02% | 3.09% |
| Real Estate | 10.04% | 8.16% |
| Financial Services | 14.85% | 12.56% |
| Consumer Cyclical | 14.91% | 11.35% |
| Basic Materials | 5.42% | 3.26% |
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 Extended Market Index Fund ETF Shares (VXF) has the most exposure to the Technology sector at 23.61%. This is followed by Healthcare and Financial Services at 15.25% and 12.56% respectively. Energy (2.46%), Consumer Defensive (3.09%), and Basic Materials (3.26%) only make up 8.81% of the fund’s total assets.
VXF’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Industrials, Consumer Cyclical, and Financial Services stocks at 7.29%, 8.16%, 11.31%, 11.35%, and 12.56%.
IJH is 6.78% more exposed to the Industrials sector than VXF (18.09% vs 11.31%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 3.56% higher and 2.29% higher respectively (14.91% vs. 11.35% and 14.85% vs. 12.56%). In total, Energy, Utilities, and Consumer Defensive also make up 2.22% more of the fund’s holdings compared to VXF (9.42% vs. 7.20%).
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%.
| VXF Holdings | Weight |
| Square Inc A | 1.2% |
| Zoom Video Communications Inc | 1.04% |
| Uber Technologies Inc | 0.93% |
| Moderna Inc | 0.9% |
| Blackstone Group Inc | 0.83% |
| Snap Inc Class A | 0.8% |
| Twilio Inc A | 0.73% |
| DocuSign Inc | 0.68% |
| CrowdStrike Holdings Inc Class A | 0.63% |
| Marvell Technology Inc | 0.6% |
VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.
Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.
Risk Analysis
| IJH | VXF | |
| Mean Return | 1.13 | 1.24 |
| R-squared | 86.39 | 85.73 |
| Std. Deviation | 16.8 | 18.04 |
| Alpha | -4.01 | -3.26 |
| Beta | 1.15 | 1.23 |
| Sharpe Ratio | 0.77 | 0.79 |
| Treynor Ratio | 10.55 | 10.92 |
The iShares Core S&P Mid-Cap ETF (IJH) has a Alpha of -4.01 with a Standard Deviation of 16.8 and a Mean Return of 1.13. Its Sharpe Ratio is 0.77 while IJH’s R-squared is 86.39. Furthermore, the fund has a Treynor Ratio of 10.55 and a Beta of 1.15.
The Vanguard Extended Market Index Fund ETF Shares (VXF) has a Sharpe Ratio of 0.79 with a Standard Deviation of 18.04 and a R-squared of 85.73. Its Alpha is -3.26 while VXF’s Treynor Ratio is 10.92. Furthermore, the fund has a Beta of 1.23 and a Mean Return of 1.24.
IJH’s Mean Return is 0.11 points lower than that of VXF and its R-squared is 0.66 points higher. With a Standard Deviation of 16.8, IJH is slightly less volatile than VXF. The Alpha and Beta of IJH are 0.75 points lower and 0.08 points lower than VXF’s Alpha and Beta.
Performance
Annual Returns
| Year | IJH | VXF |
| 2020 | 13.61% | 32.19% |
| 2019 | 26.14% | 28.04% |
| 2018 | -11.14% | -9.37% |
| 2017 | 16.19% | 18.1% |
| 2016 | 20.63% | 16.16% |
| 2015 | -2.23% | -3.26% |
| 2014 | 9.64% | 7.55% |
| 2013 | 33.4% | 38.37% |
| 2012 | 17.76% | 18.48% |
| 2011 | -1.89% | -3.61% |
| 2010 | 26.38% | 27.55% |
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 VXF, returning 38.37% on an annual basis. The poorest year for VXF in the last ten years was 2018, with a yield of -9.37%. Most years the Vanguard Extended Market Index Fund ETF Shares has given investors modest returns, such as in 2016, 2017, and 2012, when gains were 16.16%, 18.1%, and 18.48% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJH | $10,000 | $37,266 | 13.50% |
| VXF | $10,000 | $44,130 | 15.47% |
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 VXF, the end total would have been $44,130. This equates to a $34,130 profit over 11 years and a compound annual growth rate (CAGR) of 15.47%.
IJH’s CAGR is 1.97 percentage points lower than that of VXF and as a result, would have yielded $6,864 less on a $10,000 investment. Thus, IJH performed worse than VXF by 1.97% annually.
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