Generated August 8, 2026.
Overview
Both IJH and MDY track the S&P MidCap 400 Index, giving investors exposure to 400 mid-sized US companies. The key distinction is cost and scale: IJH has a 0.05% expense ratio and $126B in assets, while MDY costs 0.24% annually and manages $27.1B. For investors choosing between these two, the fee gap is the primary decision point.
How they differ
IJH's expense ratio of 0.05% undercuts MDY's 0.24% by nearly five basis points—a meaningful gap when both track identical indexes. That cost advantage has helped IJH accumulate more than four times MDY's assets. Distribution rates are nearly identical (0.97% vs. 0.96%), both paid quarterly, so yield experience should be similar. MDY has a slightly longer track record, having launched in May 1995 versus IJH's May 2000 inception. Both maintain a beta near 1.0, confirming they move in lockstep with the broad mid-cap market.
Who each is best for
IJH: Fits investors prioritizing low fees and maximum asset base, particularly those building a core mid-cap allocation where expense-ratio drag matters over a long holding period.
MDY: Designed for investors with a preference for State Street's fund family or those who value MDY's earlier inception date and longer performance history, even when accepting higher annual costs.
Key risks to know
- Sector concentration in mid-cap exposure: Both funds hold the same 400 companies, so their portfolio concentrations—including any overweight to cyclical sectors like industrials or consumer discretionary—will track together. Verify that the index's current sector tilt aligns with your risk tolerance.
- Mid-cap volatility vs. large-cap peers: At a beta near 1.0, these funds move as mid-caps do; they will outpace large-cap indexes in strong equity upswings but underperform during risk-off periods when money rotates to mega-cap safety.
- Fee drag accumulation over decades: IJH's lower expense ratio compounds over 20+ years. At an assumed 8% annual return, the 0.19% expense-ratio difference translates to meaningful compounding advantage in favor of IJH, though past returns don't predict future results.
Bottom line
If you want the lowest cost way into S&P MidCap 400 exposure, IJH's 0.05% expense ratio and deep liquidity stand out. If you have a strategic reason to prefer State Street's ecosystem or value MDY's slightly longer track record, the fund works—but you're paying five extra basis points annually for that choice. Neither fund has a hidden risk; the tradeoff is straightforward.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
