IJH ETF Factor Report

Validea's fundamental report on the iShares S&P MidCap 400 Index Fund ETF (IJH), classified as a Mid-Cap Value ETF, reveals its strongest factor exposure is to Value, scoring 61. This significantly outweighs its Momentum (47), Quality (40), and Low Volatility (39) scores. The ETF's portfolio is predominantly allocated to the Services sector, with Real Estate Operations as its largest industry, offering institutional investors a clear understanding of its fundamental characteristics and factor tilts.

Analysis

Validea's fundamental report on the iShares S&P MidCap 400 Index Fund ETF (IJH) provides a clear profile of its factor exposures. The ETF, categorized as a Mid-Cap Value fund, demonstrates a pronounced tilt toward the Value factor, registering a score of 61 out of 99. This primary characteristic is not matched by its other factor scores, which are notably lower: Momentum at 47, Quality at 40, and Low Volatility at 39. This indicates the fund's construction does not prioritize these other investment styles. Portfolio composition analysis further reveals a concentration in the Services sector, with Real Estate Operations being the largest single industry, clarifying the sources of its mid-cap value orientation.

Key Decisions for Investors

• Investors specifically seeking targeted exposure to the U.S. mid-cap value factor can consider IJH, as its dominant value score of 61 confirms a strong alignment with this investment style.
• Portfolio managers aiming for multi-factor or quality-focused strategies should be aware of IJH's relatively low scores in Quality (40) and Low Volatility (39), as it may not meet portfolio objectives for those specific factors.
• The fund's significant allocation to the Services sector and specifically Real Estate Operations warrants a review of an investor's existing exposure to these areas to avoid unintended concentration.