IJR vs. DIA: What’s The Difference?

The iShares Core S&P Small-Cap ETF (IJR) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IJR and DIA? And which fund is better?

The expense ratio of IJR is 0.10 percentage points lower than DIA’s (0.06% vs. 0.16%). IJR also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJR has provided higher returns than DIA over the past ten years.

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

Summary

IJR DIA
Name iShares Core S&P Small-Cap ETF SPDR Dow Jones Industrial Average ETF Trust
Category Small Blend Large Value
Issuer iShares SPDR State Street Global Advisors
AUM 68.64B 30.46B
Avg. Return 13.97% 13.35%
Div. Yield 0.96% 1.61%
Expense Ratio 0.06% 0.16%

The iShares Core S&P Small-Cap ETF (IJR) is a Small Blend fund that is issued by iShares. It currently has 68.64B total assets under management and has yielded an average annual return of 13.97% over the past 10 years. The fund has a dividend yield of 0.96% with an expense ratio of 0.06%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B 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 1.61% with an expense ratio of 0.16%.

IJR’s dividend yield is 0.65% lower than that of DIA (0.96% vs. 1.61%). Also, IJR yielded on average 0.61% more per year over the past decade (13.97% vs. 13.35%). The expense ratio of IJR is 0.10 percentage points lower than DIA’s (0.06% vs. 0.16%).

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Fund Composition

Industry Exposure

IJR vs. DIA - Industry Exposure

IJR DIA
Technology 14.32% 17.32%
Industrials 17.31% 16.7%
Energy 4.0% 2.0%
Communication Services 2.59% 4.42%
Utilities 1.8% 0.0%
Healthcare 11.55% 17.92%
Consumer Defensive 4.01% 6.3%
Real Estate 9.55% 0.0%
Financial Services 15.91% 20.68%
Consumer Cyclical 13.61% 13.44%
Basic Materials 5.34% 1.21%

The iShares Core S&P Small-Cap ETF (IJR) has the most exposure to the Industrials sector at 17.31%. This is followed by Financial Services and Technology at 15.91% and 14.32% respectively. Communication Services (2.59%), Energy (4.0%), and Consumer Defensive (4.01%) only make up 10.60% of the fund’s total assets.

IJR’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Consumer Cyclical, and Technology stocks at 5.34%, 9.55%, 11.55%, 13.61%, and 14.32%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

IJR is 0.61% more exposed to the Industrials sector than DIA (17.31% vs 16.7%). IJR’s exposure to Financial Services and Technology stocks is 4.77% lower and 3.00% lower respectively (15.91% vs. 20.68% and 14.32% vs. 17.32%). In total, Communication Services, Energy, and Consumer Defensive also make up 2.12% less of the fund’s holdings compared to DIA (10.60% vs. 12.72%).

Holdings

IJR - Holdings

IJR Holdings Weight
BlackRock Cash Funds Treasury SL Agency 1.08%
GameStop Corp Class A 0.86%
Omnicell Inc 0.61%
Stamps.com Inc 0.58%
Saia Inc 0.57%
Power Integrations Inc 0.57%
Exponent Inc 0.54%
NeoGenomics Inc 0.53%
Chart Industries Inc 0.53%
Macy’s Inc 0.51%

IJR’s Top Holdings are BlackRock Cash Funds Treasury SL Agency, GameStop Corp Class A, Omnicell Inc, Stamps.com Inc, and Saia Inc at 1.08%, 0.86%, 0.61%, 0.58%, and 0.57%.

Power Integrations Inc (0.57%), Exponent Inc (0.54%), and NeoGenomics Inc (0.53%) have a slightly smaller but still significant weight. Chart Industries Inc and Macy’s Inc are also represented in the IJR’s holdings at 0.53% and 0.51%.

DIA - Holdings

DIA Holdings Weight
UnitedHealth Group Inc 7.63%
Goldman Sachs Group Inc 7.23%
The Home Depot Inc 6.07%
Microsoft Corp 5.16%
Salesforce.com Inc 4.65%
Amgen Inc 4.64%
Boeing Co 4.56%
Visa Inc Class A 4.45%
McDonald’s Corp 4.4%
Honeywell International Inc 4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Risk Analysis

IJR DIA
Mean Return 1.21 1.13
R-squared 76.03 93.31
Std. Deviation 18.68 13.68
Alpha -3.7 -0.94
Beta 1.2 0.97
Sharpe Ratio 0.74 0.94
Treynor Ratio 10.77 13.07

The iShares Core S&P Small-Cap ETF (IJR) has a R-squared of 76.03 with a Standard Deviation of 18.68 and a Alpha of -3.7. Its Beta is 1.2 while IJR’s Sharpe Ratio is 0.74. Furthermore, the fund has a Mean Return of 1.21 and a Treynor Ratio of 10.77.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a R-squared of 93.31 with a Standard Deviation of 13.68 and a Treynor Ratio of 13.07. Its Sharpe Ratio is 0.94 while DIA’s Mean Return is 1.13. Furthermore, the fund has a Alpha of -0.94 and a Beta of 0.97.

IJR’s Mean Return is 0.08 points higher than that of DIA and its R-squared is 17.28 points lower. With a Standard Deviation of 18.68, IJR is slightly more volatile than DIA. The Alpha and Beta of IJR are 2.76 points lower and 0.23 points higher than DIA’s Alpha and Beta.

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Performance

Annual Returns

IJR vs. DIA - Annual Returns

Year IJR DIA
2020 11.24% 9.63%
2019 22.79% 25.09%
2018 -8.43% -3.6%
2017 13.2% 27.97%
2016 26.49% 16.28%
2015 -2.0% 0.1%
2014 5.67% 9.88%
2013 41.36% 29.41%
2012 16.28% 10.04%
2011 0.9% 8.21%
2010 26.14% 13.87%

IJR had its best year in 2013 with an annual return of 41.36%. IJR’s worst year over the past decade yielded -8.43% and occurred in 2018. In most years the iShares Core S&P Small-Cap ETF provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 11.24%, 13.2%, and 16.28% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

IJR vs. DIA - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJR $10,000 $38,800 13.97%
DIA $10,000 $37,965 13.35%

A $10,000 investment in IJR would have resulted in a final balance of $38,800. This is a profit of $28,800 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.97%.

With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.

IJR’s CAGR is 0.61 percentage points higher than that of DIA and as a result, would have yielded $835 more on a $10,000 investment. Thus, IJR outperformed DIA by 0.61% annually.


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