What IJH actually is

IJH follows the S&P MidCap 400, an index of mid-sized US companies. These are firms that have outgrown the small-company stage but are not yet among the 500 largest.

What is inside

A mix of industrials, financials, technology, health care and consumer companies. The index includes profitable companies only, which keeps out many weaker names. Many mid-caps are future large-cap members, and some of today’s large companies were once in this index.

Distributions

IJH pays dividends quarterly, but the yield is usually lower than that of a dividend fund, because mid-sized companies often reinvest more of their profit in growth.

What to keep in mind

  • Volatility. Mid-caps can swing more than large caps.
  • Economic sensitivity. They are more exposed to the domestic economy.
  • Low yield. It is a growth tool, not an income tool.

Quick take

IJH adds a middle layer of US companies to a portfolio that is already heavy in large caps.