Skip to content

IJR vs. IJH: What’s The Difference?

The iShares Core S&P Small-Cap ETF (IJR) and the iShares Core S&P Mid-Cap ETF (IJH) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and IJH is a iShares Mid-Cap Blend fund. So, what’s the difference between IJR and IJH? And which fund is better?

The expense ratio of IJR is 0.01 percentage points higher than IJH’s (0.06% vs. 0.05%). IJR also has a lower exposure to the industrials sector and a higher standard deviation. Overall, IJR has provided higher returns than IJH over the past ten years.

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

Introduction To Mutual Funds
Introduction To Mutual Funds
TIP: Keep track of all your investments with Personal Capital. I use this amazing tool to aggregate all investments in one place and make sure I'm on track to financial freedom. Oh, and did I mention it's free? Try it out here (link to Personal Capital).

Summary

IJRIJH
NameiShares Core S&P Small-Cap ETFiShares Core S&P Mid-Cap ETF
CategorySmall BlendMid-Cap Blend
IssueriSharesiShares
AUM68.64B63.4B
Avg. Return13.97%13.50%
Div. Yield0.96%1.07%
Expense Ratio0.06%0.05%

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 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%.

IJR’s dividend yield is 0.11% lower than that of IJH (0.96% vs. 1.07%). Also, IJR yielded on average 0.47% more per year over the past decade (13.97% vs. 13.50%). The expense ratio of IJR is 0.01 percentage points higher than IJH’s (0.06% vs. 0.05%).

FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).

Fund Composition

Industry Exposure

IJR vs. IJH - Industry Exposure

IJRIJH
Technology14.32%14.81%
Industrials17.31%18.09%
Energy4.0%2.5%
Communication Services2.59%1.57%
Utilities1.8%2.9%
Healthcare11.55%10.89%
Consumer Defensive4.01%4.02%
Real Estate9.55%10.04%
Financial Services15.91%14.85%
Consumer Cyclical13.61%14.91%
Basic Materials5.34%5.42%

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 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%.

IJR is 0.78% less exposed to the Industrials sector than IJH (17.31% vs 18.09%). IJR’s exposure to Financial Services and Technology stocks is 1.06% higher and 0.49% lower respectively (15.91% vs. 14.85% and 14.32% vs. 14.81%). In total, Communication Services, Energy, and Consumer Defensive also make up 2.51% more of the fund’s holdings compared to IJH (10.60% vs. 8.09%).

Holdings

IJR - Holdings

IJR HoldingsWeight
BlackRock Cash Funds Treasury SL Agency1.08%
GameStop Corp Class A0.86%
Omnicell Inc0.61%
Stamps.com Inc0.58%
Saia Inc0.57%
Power Integrations Inc0.57%
Exponent Inc0.54%
NeoGenomics Inc0.53%
Chart Industries Inc0.53%
Macy’s Inc0.51%

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%.

IJH - Holdings

IJH HoldingsWeight
Bio-Techne Corp0.8%
Molina Healthcare Inc0.68%
Cognex Corp0.68%
Fair Isaac Corp0.64%
Camden Property Trust0.62%
XPO Logistics Inc0.6%
Masimo Corp0.59%
SolarEdge Technologies Inc0.57%
FactSet Research Systems Inc0.57%
Graco Inc0.56%

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%.

NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).

Risk Analysis

IJRIJH
Mean Return1.211.13
R-squared76.0386.39
Std. Deviation18.6816.8
Alpha-3.7-4.01
Beta1.21.15
Sharpe Ratio0.740.77
Treynor Ratio10.7710.55

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

The iShares Core S&P Mid-Cap ETF (IJH) has a R-squared of 86.39 with a Treynor Ratio of 10.55 and a Mean Return of 1.13. Its Sharpe Ratio is 0.77 while IJH’s Beta is 1.15. Furthermore, the fund has a Standard Deviation of 16.8 and a Alpha of -4.01.

IJR’s Mean Return is 0.08 points higher than that of IJH and its R-squared is 10.36 points lower. With a Standard Deviation of 18.68, IJR is slightly more volatile than IJH. The Alpha and Beta of IJR are 0.31 points higher and 0.05 points higher than IJH’s Alpha and Beta.

FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

Performance

Annual Returns

IJR vs. IJH - Annual Returns

YearIJRIJH
202011.24%13.61%
201922.79%26.14%
2018-8.43%-11.14%
201713.2%16.19%
201626.49%20.63%
2015-2.0%-2.23%
20145.67%9.64%
201341.36%33.4%
201216.28%17.76%
20110.9%-1.89%
201026.14%26.38%

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 IJH, returning 33.4% on an annual basis. The poorest year for IJH in the last ten years was 2018, with a yield of -11.14%. Most years the iShares Core S&P Mid-Cap ETF has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.61%, 16.19%, and 17.76% respectively.

Portfolio Growth

IJR vs. IJH - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IJR$10,000$38,80013.97%
IJH$10,000$37,26613.50%

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 IJH, the end total would have been $37,266. This equates to a $27,266 profit over 11 years and a compound annual growth rate (CAGR) of 13.50%.

IJR’s CAGR is 0.47 percentage points higher than that of IJH and as a result, would have yielded $1,534 more on a $10,000 investment. Thus, IJR outperformed IJH by 0.47% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!

2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.

5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply

Your email address will not be published.