The iShares Core S&P Small-Cap ETF (IJR) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IJR is a iShares Small Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between IJR and IVE? And which fund is better?
The expense ratio of IJR is 0.12 percentage points lower than IVE’s (0.06% vs. 0.18%). IJR also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJR has provided higher returns than IVE over the past ten years.
In this article, we’ll compare IJR vs. IVE. We’ll look at risk metrics and fund composition, as well as at their performance and portfolio growth. Moreover, I’ll also discuss IJR’s and IVE’s annual returns, holdings, and industry exposure and examine how these affect their overall returns.
Summary
| IJR | IVE | |
| Name | iShares Core S&P Small-Cap ETF | iShares S&P 500 Value ETF |
| Category | Small Blend | Large Value |
| Issuer | iShares | iShares |
| AUM | 68.64B | 22.4B |
| Avg. Return | 13.97% | 11.68% |
| Div. Yield | 0.96% | 1.88% |
| Expense Ratio | 0.06% | 0.18% |
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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.
IJR’s dividend yield is 0.92% lower than that of IVE (0.96% vs. 1.88%). Also, IJR yielded on average 2.28% more per year over the past decade (13.97% vs. 11.68%). The expense ratio of IJR is 0.12 percentage points lower than IVE’s (0.06% vs. 0.18%).
Fund Composition
Industry Exposure
| IJR | IVE | |
| Technology | 14.32% | 9.41% |
| Industrials | 17.31% | 12.19% |
| Energy | 4.0% | 5.43% |
| Communication Services | 2.59% | 6.4% |
| Utilities | 1.8% | 4.82% |
| Healthcare | 11.55% | 15.4% |
| Consumer Defensive | 4.01% | 9.23% |
| Real Estate | 9.55% | 4.38% |
| Financial Services | 15.91% | 22.06% |
| Consumer Cyclical | 13.61% | 7.68% |
| Basic Materials | 5.34% | 2.99% |
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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.
IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.
IJR is 5.12% more exposed to the Industrials sector than IVE (17.31% vs 12.19%). IJR’s exposure to Financial Services and Technology stocks is 6.15% lower and 4.91% higher respectively (15.91% vs. 22.06% and 14.32% vs. 9.41%). In total, Communication Services, Energy, and Consumer Defensive also make up 10.46% less of the fund’s holdings compared to IVE (10.60% vs. 21.06%).
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%.
| IVE Holdings | Weight |
| Berkshire Hathaway Inc Class B | 3.05% |
| JPMorgan Chase & Co | 2.65% |
| The Walt Disney Co | 1.85% |
| Bank of America Corp | 1.67% |
| Johnson & Johnson | 1.57% |
| Exxon Mobil Corp | 1.41% |
| Pfizer Inc | 1.38% |
| Cisco Systems Inc | 1.35% |
| Verizon Communications Inc | 1.33% |
| Intel Corp | 1.25% |
IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.
Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.
Risk Analysis
| IJR | IVE | |
| Mean Return | 1.21 | 1.05 |
| R-squared | 76.03 | 92.08 |
| Std. Deviation | 18.68 | 14.3 |
| Alpha | -3.7 | -2.9 |
| Beta | 1.2 | 1.01 |
| Sharpe Ratio | 0.74 | 0.83 |
| Treynor Ratio | 10.77 | 11.41 |
The iShares Core S&P Small-Cap ETF (IJR) has a Mean Return of 1.21 with a Beta of 1.2 and a R-squared of 76.03. Its Alpha is -3.7 while IJR’s Sharpe Ratio is 0.74. Furthermore, the fund has a Treynor Ratio of 10.77 and a Standard Deviation of 18.68.
The iShares S&P 500 Value ETF (IVE) has a Standard Deviation of 14.3 with a Mean Return of 1.05 and a Sharpe Ratio of 0.83. Its Beta is 1.01 while IVE’s Treynor Ratio is 11.41. Furthermore, the fund has a Alpha of -2.9 and a R-squared of 92.08.
IJR’s Mean Return is 0.16 points higher than that of IVE and its R-squared is 16.05 points lower. With a Standard Deviation of 18.68, IJR is slightly more volatile than IVE. The Alpha and Beta of IJR are 0.80 points lower and 0.19 points higher than IVE’s Alpha and Beta.
Performance
Annual Returns
| Year | IJR | IVE |
| 2020 | 11.24% | 1.24% |
| 2019 | 22.79% | 31.71% |
| 2018 | -8.43% | -9.09% |
| 2017 | 13.2% | 15.19% |
| 2016 | 26.49% | 17.17% |
| 2015 | -2.0% | -3.24% |
| 2014 | 5.67% | 12.14% |
| 2013 | 41.36% | 31.69% |
| 2012 | 16.28% | 17.45% |
| 2011 | 0.9% | -0.63% |
| 2010 | 26.14% | 14.9% |
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 2019 was the strongest year for IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IJR | $10,000 | $38,800 | 13.97% |
| IVE | $10,000 | $31,350 | 11.68% |
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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.
IJR’s CAGR is 2.28 percentage points higher than that of IVE and as a result, would have yielded $7,450 more on a $10,000 investment. Thus, IJR outperformed IVE by 2.28% annually.
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