IJH: U.S. Mid-Cap Stocks Appear Undervalued

Summary iShares Core S&P Mid-Cap ETF offers low-cost, liquid exposure to US mid-cap stocks, tracking the S&P MidCap 400 Index. IJH's valuation appears attractive, with an estimated forward IRR of just over 13% and a beta-adjusted equity risk premium exceeding 8%. Despite long-term underperformance versus the S&P 500 and higher downside beta, current macroeconomic conditions favor IJH's sector exposures. I rate IJH a tactical Buy for the next 3-6 months but do not recommend it as a long-term S&P 500 replacement. Rangsarit Chaiyakun/iStock via Getty Images Introduction iShares Core S&P Mid-Cap ETF ( IJH ) is an exchange-traded fund designed to track the S&P MidCap 400 Index. The fund provides exposure to mid-sized U.S. companies. The expense ratio is only 0.05%, with AUM of $123.7 billion This article was written by Hedge Insider 1.73K Followers Follow Providing commentary and analysis, principally focused on global macro, foreign exchange, and equities as an asset class. Primary interests include equity investing from an international perspective, and FX fair values. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.