We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should iShares Core S&P MidCap ETF (IJH) Be on Your Investing Radar?
Read MoreHide Full Article
Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the iShares Core S&P MidCap ETF (IJH - Free Report) , a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $67.32 billion, making it the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.05%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.20%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.10% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Signature Bank (SBNY - Free Report) accounts for about 0.76% of total assets, followed by Solaredge Technologies Inc (SEDG - Free Report) and Molina Healthcare Inc (MOH - Free Report) .
The top 10 holdings account for about 6.43% of total assets under management.
Performance and Risk
IJH seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -1.80% so far this year and is up roughly 22.93% in the last one year (as of 01/06/2022). In the past 52-week period, it has traded between $233.25 and $290.54.
The ETF has a beta of 1.16 and standard deviation of 27.16% for the trailing three-year period, making it a medium risk choice in the space. With about 409 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IJH is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell MidCap ETF (IWR - Free Report) and the Vanguard MidCap ETF (VO - Free Report) track a similar index. While iShares Russell MidCap ETF has $30.78 billion in assets, Vanguard MidCap ETF has $54.98 billion. IWR has an expense ratio of 0.19% and VO charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should iShares Core S&P MidCap ETF (IJH) Be on Your Investing Radar?
Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the iShares Core S&P MidCap ETF (IJH - Free Report) , a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $67.32 billion, making it the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.05%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.20%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.10% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Signature Bank (SBNY - Free Report) accounts for about 0.76% of total assets, followed by Solaredge Technologies Inc (SEDG - Free Report) and Molina Healthcare Inc (MOH - Free Report) .
The top 10 holdings account for about 6.43% of total assets under management.
Performance and Risk
IJH seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.
The ETF has lost about -1.80% so far this year and is up roughly 22.93% in the last one year (as of 01/06/2022). In the past 52-week period, it has traded between $233.25 and $290.54.
The ETF has a beta of 1.16 and standard deviation of 27.16% for the trailing three-year period, making it a medium risk choice in the space. With about 409 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IJH is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell MidCap ETF (IWR - Free Report) and the Vanguard MidCap ETF (VO - Free Report) track a similar index. While iShares Russell MidCap ETF has $30.78 billion in assets, Vanguard MidCap ETF has $54.98 billion. IWR has an expense ratio of 0.19% and VO charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.