The iShares Core S&P Mid-Cap ETF (IJH) and the Vanguard Total International Stock Index Fund ETF Shares (VXUS) are both among the Top 100 ETFs. IJH is a iShares Mid-Cap Blend fund and VXUS is a Vanguard Foreign Large Blend fund. So, what’s the difference between IJH and VXUS? And which fund is better?
The expense ratio of IJH is 0.03 percentage points lower than VXUS’s (0.05% vs. 0.08%). IJH also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJH has provided higher returns than VXUS over the past ten years.
In this article, we’ll compare IJH vs. VXUS. We’ll look at risk metrics and portfolio growth, as well as at their fund composition and performance. Moreover, I’ll also discuss IJH’s and VXUS’s holdings, industry exposure, and annual returns and examine how these affect their overall returns.
|Name||iShares Core S&P Mid-Cap ETF||Vanguard Total International Stock Index Fund ETF Shares|
|Category||Mid-Cap Blend||Foreign 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 Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.
IJH’s dividend yield is 1.37% lower than that of VXUS (1.07% vs. 2.44%). Also, IJH yielded on average 5.09% more per year over the past decade (13.50% vs. 8.41%). The expense ratio of IJH is 0.03 percentage points lower than VXUS’s (0.05% vs. 0.08%).
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 Total International Stock Index Fund ETF Shares (VXUS) has the most exposure to the Financial Services sector at 17.64%. This is followed by Technology and Industrials at 13.07% and 12.94% respectively. Real Estate (3.79%), Energy (4.55%), and Communication Services (7.06%) only make up 15.40% of the fund’s total assets.
VXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 7.83%, 8.37%, 9.19%, 12.64%, and 12.94%.
IJH is 5.15% more exposed to the Industrials sector than VXUS (18.09% vs 12.94%). IJH’s exposure to Consumer Cyclical and Financial Services stocks is 2.27% higher and 2.79% lower respectively (14.91% vs. 12.64% and 14.85% vs. 17.64%). In total, Energy, Utilities, and Consumer Defensive also make up 5.90% less of the fund’s holdings compared to VXUS (9.42% vs. 15.32%).
|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%.
|Taiwan Semiconductor Manufacturing Co Ltd||1.62%|
|Tencent Holdings Ltd||1.41%|
|Alibaba Group Holding Ltd Ordinary Shares||1.26%|
|Samsung Electronics Co Ltd||1.05%|
|ASML Holding NV||0.86%|
|Roche Holding AG||0.81%|
|Toyota Motor Corp||0.67%|
|LVMH Moet Hennessy Louis Vuitton SE||0.61%|
VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.
ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.
The iShares Core S&P Mid-Cap ETF (IJH) has a R-squared of 86.39 with a Mean Return of 1.13 and a Standard Deviation of 16.8. Its Treynor Ratio is 10.55 while IJH’s Sharpe Ratio is 0.77. Furthermore, the fund has a Beta of 1.15 and a Alpha of -4.01.
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a R-squared of 98.39 with a Beta of 0.99 and a Mean Return of 0.56. Its Standard Deviation is 15.12 while VXUS’s Treynor Ratio is 5.14. Furthermore, the fund has a Alpha of 0.31 and a Sharpe Ratio of 0.4.
IJH’s Mean Return is 0.57 points higher than that of VXUS and its R-squared is 12.00 points lower. With a Standard Deviation of 16.8, IJH is slightly more volatile than VXUS. The Alpha and Beta of IJH are 4.32 points lower and 0.16 points higher than VXUS’s Alpha and Beta.
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 2017 was the strongest year for VXUS, returning 27.52% on an annual basis. The poorest year for VXUS in the last ten years was 2018, with a yield of -14.42%. Most years the Vanguard Total International Stock Index Fund ETF Shares has given investors modest returns, such as in 2010, 2016, and 2020, when gains were 0.0%, 4.72%, and 11.32% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IJH would have resulted in a final balance of $30,055. This is a profit of $20,055 over 9 years and amounts to a compound annual growth rate (CAGR) of 13.50%.
With a $10,000 investment in VXUS, the end total would have been $19,315. This equates to a $9,315 profit over 9 years and a compound annual growth rate (CAGR) of 8.41%.
IJH’s CAGR is 5.09 percentage points higher than that of VXUS and as a result, would have yielded $10,740 more on a $10,000 investment. Thus, IJH outperformed VXUS by 5.09% annually.
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