IJH ETF Factor Report

Validea's fundamental report indicates the iShares S&P MidCap 400 Index Fund ETF (IJH) is a Mid-Cap Value ETF with its largest sector allocation in Services and industry allocation in Real Estate Operations; the ETF exhibits factor scores of 60 for Value, 45 for Momentum, 39 for Quality, and 39 for Low Volatility.

Analysis

The iShares S&P MidCap 400 Index Fund ETF (IJH) presents a distinct factor profile, according to Validea's fundamental report. Classified as a Mid-Cap Value ETF, its portfolio is most heavily weighted towards the Services sector and the Real Estate Operations industry. The fund's factor score for Value is 60 out of 99, confirming a moderate tilt towards value characteristics. However, its exposure to other key factors is notably weak, with a Momentum score of 45, and particularly low scores of 39 for both Quality and Low Volatility. This quantitative profile indicates that while the ETF provides access to mid-cap value stocks, its underlying holdings do not exhibit strong fundamental quality, such as stable earnings or robust balance sheets, nor do they possess characteristics of lower volatility or strong recent price performance.

Key Decisions for Investors

• Investors seeking dedicated mid-cap value exposure may find the fund's Value score of 60 suitable, but should be aware of its specific sector and industry concentrations.
• The notably low Quality and Low Volatility scores of 39 suggest the ETF may underperform during market downturns or flight-to-quality rotations, representing a key risk factor for risk-averse investors.
• Given the weak Momentum score of 45, this ETF is not positioned to capture trending market themes and may lag in momentum-driven environments.
• Consider using IJH as a specific value-factor component within a diversified portfolio, balanced with other holdings that offer higher exposure to quality and momentum factors.