IJR vs. IWP: What’s The Difference?

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

The expense ratio of IJR is 0.18 percentage points lower than IWP’s (0.06% vs. 0.24%). IJR also has a higher exposure to the industrials sector and a higher standard deviation. Overall, IJR has provided lower returns than IWP over the past ten years.

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

Summary

IJR IWP
Name iShares Core S&P Small-Cap ETF iShares Russell Mid-Cap Growth ETF
Category Small Blend Mid-Cap Growth
Issuer iShares iShares
AUM 68.64B 15.7B
Avg. Return 13.97% 16.75%
Div. Yield 0.96% 0.26%
Expense Ratio 0.06% 0.24%

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 Russell Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

IJR’s dividend yield is 0.70% higher than that of IWP (0.96% vs. 0.26%). Also, IJR yielded on average 2.78% less per year over the past decade (13.97% vs. 16.75%). The expense ratio of IJR is 0.18 percentage points lower than IWP’s (0.06% vs. 0.24%).

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Fund Composition

Industry Exposure

IJR vs. IWP - Industry Exposure

IJR IWP
Technology 14.32% 33.88%
Industrials 17.31% 14.09%
Energy 4.0% 1.51%
Communication Services 2.59% 6.32%
Utilities 1.8% 0.16%
Healthcare 11.55% 16.79%
Consumer Defensive 4.01% 2.32%
Real Estate 9.55% 2.46%
Financial Services 15.91% 4.52%
Consumer Cyclical 13.61% 16.09%
Basic Materials 5.34% 1.86%

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 Russell Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.

IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.

IJR is 3.22% more exposed to the Industrials sector than IWP (17.31% vs 14.09%). IJR’s exposure to Financial Services and Technology stocks is 11.39% higher and 19.56% lower respectively (15.91% vs. 4.52% and 14.32% vs. 33.88%). In total, Communication Services, Energy, and Consumer Defensive also make up 0.45% more of the fund’s holdings compared to IWP (10.60% vs. 10.15%).

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%.

IWP - Holdings

IWP Holdings Weight
IDEXX Laboratories Inc 1.3%
DocuSign Inc 1.3%
Roku Inc Class A 1.29%
Match Group Inc 1.06%
Chipotle Mexican Grill Inc 1.06%
Pinterest Inc 1.05%
Veeva Systems Inc Class A 1.04%
Palantir Technologies Inc Ordinary Shares – Class A 1.04%
Lululemon Athletica Inc 1.01%
DexCom Inc 1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

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Risk Analysis

IJR IWP
Mean Return 1.21 1.27
R-squared 76.03 87.01
Std. Deviation 18.68 16.05
Alpha -3.7 -1.03
Beta 1.2 1.1
Sharpe Ratio 0.74 0.91
Treynor Ratio 10.77 12.98

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

The iShares Russell Mid-Cap Growth ETF (IWP) has a Sharpe Ratio of 0.91 with a Standard Deviation of 16.05 and a Beta of 1.1. Its Alpha is -1.03 while IWP’s Treynor Ratio is 12.98. Furthermore, the fund has a R-squared of 87.01 and a Mean Return of 1.27.

IJR’s Mean Return is 0.06 points lower than that of IWP and its R-squared is 10.98 points lower. With a Standard Deviation of 18.68, IJR is slightly more volatile than IWP. The Alpha and Beta of IJR are 2.67 points lower and 0.10 points higher than IWP’s Alpha and Beta.

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Performance

Annual Returns

IJR vs. IWP - Annual Returns

Year IJR IWP
2020 11.24% 35.29%
2019 22.79% 35.14%
2018 -8.43% -4.95%
2017 13.2% 24.98%
2016 26.49% 7.15%
2015 -2.0% -0.39%
2014 5.67% 11.68%
2013 41.36% 35.44%
2012 16.28% 15.62%
2011 0.9% -1.82%
2010 26.14% 26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

IJR vs. IWP - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IJR $10,000 $38,800 13.97%
IWP $10,000 $50,191 16.75%

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 IWP, the end total would have been $50,191. This equates to a $40,191 profit over 11 years and a compound annual growth rate (CAGR) of 16.75%.

IJR’s CAGR is 2.78 percentage points lower than that of IWP and as a result, would have yielded $11,391 less on a $10,000 investment. Thus, IJR performed worse than IWP by 2.78% annually.


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