The iShares Core MSCI Emerging Markets ETF (IEMG) and the iShares Core MSCI Total International Stock ETF (IXUS) are both among the Top 100 ETFs. IEMG is a iShares Diversified Emerging Mkts fund and IXUS is a iShares Foreign Large Blend fund. So, what’s the difference between IEMG and IXUS? And which fund is better?
The expense ratio of IEMG is 0.02 percentage points higher than IXUS’s (0.11% vs. 0.09%). IEMG also has a higher exposure to the technology sector and a lower standard deviation. Overall, IEMG has provided higher returns than IXUS over the past ten years.
In this article, we’ll compare IEMG vs. IXUS. We’ll look at portfolio growth and holdings, as well as at their annual returns and fund composition. Moreover, I’ll also discuss IEMG’s and IXUS’s industry exposure, performance, and risk metrics and examine how these affect their overall returns.
|Name||iShares Core MSCI Emerging Markets ETF||iShares Core MSCI Total International Stock ETF|
|Category||Diversified Emerging Mkts||Foreign Large Blend|
The iShares Core MSCI Emerging Markets ETF (IEMG) is a Diversified Emerging Mkts fund that is issued by iShares. It currently has 83.68B total assets under management and has yielded an average annual return of 7.41% over the past 10 years. The fund has a dividend yield of 1.78% with an expense ratio of 0.11%.
The iShares Core MSCI Total International Stock ETF (IXUS) is a Foreign Large Blend fund that is issued by iShares. It currently has 29.54B total assets under management and has yielded an average annual return of 6.09% over the past 10 years. The fund has a dividend yield of 2.13% with an expense ratio of 0.09%.
IEMG’s dividend yield is 0.35% lower than that of IXUS (1.78% vs. 2.13%). Also, IEMG yielded on average 1.32% more per year over the past decade (7.41% vs. 6.09%). The expense ratio of IEMG is 0.02 percentage points higher than IXUS’s (0.11% vs. 0.09%).
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The iShares Core MSCI Emerging Markets ETF (IEMG) has the most exposure to the Technology sector at 20.44%. This is followed by Financial Services and Consumer Cyclical at 16.9% and 15.67% respectively. Real Estate (2.75%), Energy (4.71%), and Consumer Defensive (5.68%) only make up 13.14% of the fund’s total assets.
IEMG’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Basic Materials, Communication Services, and Consumer Cyclical stocks at 5.73%, 5.92%, 8.64%, 11.41%, and 15.67%.
The iShares Core MSCI Total International Stock ETF (IXUS) has the most exposure to the Financial Services sector at 17.34%. This is followed by Technology and Industrials at 13.24% and 12.78% respectively. Real Estate (3.66%), Energy (4.39%), and Communication Services (7.09%) only make up 15.14% of the fund’s total assets.
IXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 8.19%, 8.5%, 9.29%, 12.57%, and 12.78%.
IEMG is 7.20% more exposed to the Technology sector than IXUS (20.44% vs 13.24%). IEMG’s exposure to Financial Services and Consumer Cyclical stocks is 0.44% lower and 3.10% higher respectively (16.9% vs. 17.34% and 15.67% vs. 12.57%). In total, Real Estate, Energy, and Consumer Defensive also make up 3.10% less of the fund’s holdings compared to IXUS (13.14% vs. 16.24%).
|Taiwan Semiconductor Manufacturing Co Ltd||5.37%|
|Tencent Holdings Ltd||4.42%|
|Alibaba Group Holding Ltd Ordinary Shares||4.38%|
|Samsung Electronics Co Ltd||3.49%|
|Naspers Ltd Class N||0.93%|
|Reliance Industries Ltd Shs Dematerialised||0.83%|
|China Construction Bank Corp Class H||0.77%|
IEMG’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Samsung Electronics Co Ltd, and Meituan at 5.37%, 4.42%, 4.38%, 3.49%, and 1.52%.
Naspers Ltd Class N (0.93%), Vale SA (0.91%), and Reliance Industries Ltd Shs Dematerialised (0.83%) have a slightly smaller but still significant weight. China Construction Bank Corp Class H and Infosys Ltd are also represented in the IEMG’s holdings at 0.77% and 0.74%.
|Taiwan Semiconductor Manufacturing Co Ltd||1.64%|
|Tencent Holdings Ltd||1.35%|
|Alibaba Group Holding Ltd Ordinary Shares||1.34%|
|Samsung Electronics Co Ltd||1.06%|
|ASML Holding NV||0.9%|
|Roche Holding AG||0.81%|
|LVMH Moet Hennessy Louis Vuitton SE||0.67%|
|Toyota Motor Corp||0.59%|
IXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.64%, 1.35%, 1.34%, 1.1%, and 1.06%.
ASML Holding NV (0.9%), Roche Holding AG (0.81%), and LVMH Moet Hennessy Louis Vuitton SE (0.67%) have a slightly smaller but still significant weight. Novartis AG and Toyota Motor Corp are also represented in the IXUS’s holdings at 0.62% and 0.59%.
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The iShares Core MSCI Emerging Markets ETF (IEMG) has a Beta of 0 with a Standard Deviation of 0 and a Mean Return of 0. Its Sharpe Ratio is 0 while IEMG’s R-squared is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Alpha of 0.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Mean Return of 0 with a Sharpe Ratio of 0 and a Alpha of 0. Its Standard Deviation is 0 while IXUS’s Beta is 0. Furthermore, the fund has a R-squared of 0 and a Treynor Ratio of 0.
IEMG’s Mean Return is 0.00 points lower than that of IXUS and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IEMG is slightly less volatile than IXUS. The Alpha and Beta of IEMG are 0.00 points lower and 0.00 points lower than IXUS’s Alpha and Beta.
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IEMG had its best year in 2017 with an annual return of 36.78%. IEMG’s worst year over the past decade yielded -14.69% and occurred in 2018. In most years the iShares Core MSCI Emerging Markets ETF provided moderate returns such as in 2012, 2011, and 2010 where annual returns amounted to 0.0%, 0.0%, and 0.0% respectively.
The year 2017 was the strongest year for IXUS, returning 28.08% on an annual basis. The poorest year for IXUS in the last ten years was 2018, with a yield of -14.55%. Most years the iShares Core MSCI Total International Stock ETF has given investors modest returns, such as in 2011, 2010, and 2016, when gains were 0.0%, 0.0%, and 4.66% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IEMG would have resulted in a final balance of $15,037. This is a profit of $5,037 over 7 years and amounts to a compound annual growth rate (CAGR) of 7.41%.
With a $10,000 investment in IXUS, the end total would have been $14,209. This equates to a $4,209 profit over 7 years and a compound annual growth rate (CAGR) of 6.09%.
IEMG’s CAGR is 1.32 percentage points higher than that of IXUS and as a result, would have yielded $828 more on a $10,000 investment. Thus, IEMG outperformed IXUS by 1.32% annually.
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