The iShares Russell 1000 Growth ETF (IWF) and the iShares Core S&P Mid-Cap ETF (IJH) are both among the Top 100 ETFs. IWF is a iShares Large Growth fund and IJH is a iShares Mid-Cap Blend fund. So, what’s the difference between IWF and IJH? And which fund is better?
The expense ratio of IWF is 0.14 percentage points higher than IJH’s (0.19% vs. 0.05%). IWF also has a higher exposure to the technology sector and a lower standard deviation. Overall, IWF has provided higher returns than IJH over the past ten years.
In this article, we’ll compare IWF vs. IJH. We’ll look at risk metrics and portfolio growth, as well as at their holdings and fund composition. Moreover, I’ll also discuss IWF’s and IJH’s performance, industry exposure, and annual returns and examine how these affect their overall returns.
|Name||iShares Russell 1000 Growth ETF||iShares Core S&P Mid-Cap ETF|
|Category||Large Growth||Mid-Cap Blend|
The iShares Russell 1000 Growth ETF (IWF) is a Large Growth fund that is issued by iShares. It currently has 72.16B total assets under management and has yielded an average annual return of 17.72% over the past 10 years. The fund has a dividend yield of 0.52% with an expense ratio of 0.19%.
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%.
IWF’s dividend yield is 0.55% lower than that of IJH (0.52% vs. 1.07%). Also, IWF yielded on average 4.23% more per year over the past decade (17.72% vs. 13.50%). The expense ratio of IWF is 0.14 percentage points higher than IJH’s (0.19% vs. 0.05%).
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The iShares Russell 1000 Growth ETF (IWF) has the most exposure to the Technology sector at 39.29%. This is followed by Consumer Cyclical and Communication Services at 17.62% and 12.82% respectively. Energy (0.28%), Basic Materials (1.01%), and Real Estate (1.85%) only make up 3.14% of the fund’s total assets.
IWF’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Communication Services stocks at 4.31%, 6.19%, 7.36%, 9.23%, and 12.82%.
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%.
IWF is 24.48% more exposed to the Technology sector than IJH (39.29% vs 14.81%). IWF’s exposure to Consumer Cyclical and Communication Services stocks is 2.71% higher and 11.25% higher respectively (17.62% vs. 14.91% and 12.82% vs. 1.57%). In total, Energy, Basic Materials, and Real Estate also make up 14.82% less of the fund’s holdings compared to IJH (3.14% vs. 17.96%).
|Facebook Inc Class A||3.91%|
|Alphabet Inc Class A||3.2%|
|Alphabet Inc Class C||3.03%|
|Visa Inc Class A||1.91%|
|The Home Depot Inc||1.62%|
IWF’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 10.51%, 9.85%, 6.63%, 3.91%, and 3.2%.
Alphabet Inc Class C (3.03%), Tesla Inc (2.45%), and NVIDIA Corp (2.14%) have a slightly smaller but still significant weight. Visa Inc Class A and The Home Depot Inc are also represented in the IWF’s holdings at 1.91% and 1.62%.
|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%.
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The iShares Russell 1000 Growth ETF (IWF) has a R-squared of 92.93 with a Mean Return of 1.48 and a Beta of 1.03. Its Sharpe Ratio is 1.19 while IWF’s Treynor Ratio is 17.1. Furthermore, the fund has a Alpha of 2.16 and a Standard Deviation of 14.42.
The iShares Core S&P Mid-Cap ETF (IJH) has a R-squared of 86.39 with a Standard Deviation of 16.8 and a Sharpe Ratio of 0.77. Its Beta is 1.15 while IJH’s Mean Return is 1.13. Furthermore, the fund has a Alpha of -4.01 and a Treynor Ratio of 10.55.
IWF’s Mean Return is 0.35 points higher than that of IJH and its R-squared is 6.54 points higher. With a Standard Deviation of 14.42, IWF is slightly less volatile than IJH. The Alpha and Beta of IWF are 6.17 points higher and 0.12 points lower than IJH’s Alpha and Beta.
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IWF had its best year in 2020 with an annual return of 38.21%. IWF’s worst year over the past decade yielded -1.68% and occurred in 2018. In most years the iShares Russell 1000 Growth ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 12.84%, 15.03%, and 16.47% 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.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IWF would have resulted in a final balance of $55,920. This is a profit of $45,920 over 11 years and amounts to a compound annual growth rate (CAGR) of 17.72%.
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%.
IWF’s CAGR is 4.23 percentage points higher than that of IJH and as a result, would have yielded $18,654 more on a $10,000 investment. Thus, IWF outperformed IJH by 4.23% annually.
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