The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the iShares Core MSCI Total International Stock ETF (IXUS) are both among the Top 100 ETFs. ITOT is a iShares Large Blend fund and IXUS is a iShares Foreign Large Blend fund. So, what’s the difference between ITOT and IXUS? And which fund is better?
The expense ratio of ITOT is 0.06 percentage points lower than IXUS’s (0.03% vs. 0.09%). ITOT also has a higher exposure to the technology sector and a higher standard deviation. Overall, ITOT has provided higher returns than IXUS over the past ten years.
In this article, we’ll compare ITOT vs. IXUS. We’ll look at annual returns and industry exposure, as well as at their fund composition and risk metrics. Moreover, I’ll also discuss ITOT’s and IXUS’s holdings, performance, and portfolio growth and examine how these affect their overall returns.
Summary
| ITOT | IXUS | |
| Name | iShares Core S&P Total U.S. Stock Market ETF | iShares Core MSCI Total International Stock ETF |
| Category | Large Blend | Foreign Large Blend |
| Issuer | iShares | iShares |
| AUM | 41.97B | 29.54B |
| Avg. Return | 14.59% | 6.09% |
| Div. Yield | 1.2% | 2.13% |
| Expense Ratio | 0.03% | 0.09% |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.
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%.
ITOT’s dividend yield is 0.93% lower than that of IXUS (1.2% vs. 2.13%). Also, ITOT yielded on average 8.50% more per year over the past decade (14.59% vs. 6.09%). The expense ratio of ITOT is 0.06 percentage points lower than IXUS’s (0.03% vs. 0.09%).
Fund Composition
Industry Exposure
| ITOT | IXUS | |
| Technology | 24.49% | 13.24% |
| Industrials | 9.21% | 12.78% |
| Energy | 2.51% | 4.39% |
| Communication Services | 10.54% | 7.09% |
| Utilities | 2.35% | 2.95% |
| Healthcare | 13.59% | 9.29% |
| Consumer Defensive | 5.79% | 8.19% |
| Real Estate | 3.67% | 3.66% |
| Financial Services | 13.69% | 17.34% |
| Consumer Cyclical | 11.69% | 12.57% |
| Basic Materials | 2.47% | 8.5% |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 24.49%. This is followed by Financial Services and Healthcare at 13.69% and 13.59% respectively. Basic Materials (2.47%), Energy (2.51%), and Real Estate (3.67%) only make up 8.65% of the fund’s total assets.
ITOT’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.79%, 9.21%, 10.54%, 11.69%, and 13.59%.
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%.
ITOT is 11.25% more exposed to the Technology sector than IXUS (24.49% vs 13.24%). ITOT’s exposure to Financial Services and Healthcare stocks is 3.65% lower and 4.30% higher respectively (13.69% vs. 17.34% and 13.59% vs. 9.29%). In total, Basic Materials, Energy, and Real Estate also make up 7.90% less of the fund’s holdings compared to IXUS (8.65% vs. 16.55%).
Holdings
| ITOT Holdings | Weight |
| Apple Inc | 5.07% |
| Microsoft Corp | 4.75% |
| Amazon.com Inc | 3.16% |
| Facebook Inc Class A | 1.89% |
| Alphabet Inc Class A | 1.79% |
| Alphabet Inc Class C | 1.71% |
| Tesla Inc | 1.17% |
| Berkshire Hathaway Inc Class B | 1.17% |
| NVIDIA Corp | 1.08% |
| JPMorgan Chase & Co | 1.02% |
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.
Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.
| IXUS Holdings | Weight |
| Taiwan Semiconductor Manufacturing Co Ltd | 1.64% |
| Tencent Holdings Ltd | 1.35% |
| Alibaba Group Holding Ltd Ordinary Shares | 1.34% |
| Nestle SA | 1.1% |
| Samsung Electronics Co Ltd | 1.06% |
| ASML Holding NV | 0.9% |
| Roche Holding AG | 0.81% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.67% |
| Novartis AG | 0.62% |
| 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%.
Risk Analysis
| ITOT | IXUS | |
| Mean Return | 1.27 | 0 |
| R-squared | 99.4 | 0 |
| Std. Deviation | 14.02 | 0 |
| Alpha | -0.54 | 0 |
| Beta | 1.03 | 0 |
| Sharpe Ratio | 1.04 | 0 |
| Treynor Ratio | 14.13 | 0 |
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has a Treynor Ratio of 14.13 with a Alpha of -0.54 and a Standard Deviation of 14.02. Its R-squared is 99.4 while ITOT’s Mean Return is 1.27. Furthermore, the fund has a Beta of 1.03 and a Sharpe Ratio of 1.04.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Alpha of 0 with a Treynor Ratio of 0 and a R-squared of 0. Its Sharpe Ratio is 0 while IXUS’s Beta is 0. Furthermore, the fund has a Standard Deviation of 0 and a Mean Return of 0.
ITOT’s Mean Return is 1.27 points higher than that of IXUS and its R-squared is 99.40 points higher. With a Standard Deviation of 14.02, ITOT is slightly more volatile than IXUS. The Alpha and Beta of ITOT are 0.54 points lower and 1.03 points higher than IXUS’s Alpha and Beta.
Performance
Annual Returns
| Year | ITOT | IXUS |
| 2020 | 20.75% | 11.14% |
| 2019 | 30.87% | 21.85% |
| 2018 | -5.27% | -14.55% |
| 2017 | 21.23% | 28.08% |
| 2016 | 12.59% | 4.66% |
| 2015 | 0.96% | -4.62% |
| 2014 | 13.01% | -3.96% |
| 2013 | 32.67% | 15.85% |
| 2012 | 15.98% | 0.0% |
| 2011 | 1.55% | 0.0% |
| 2010 | 16.15% | 0.0% |
ITOT had its best year in 2013 with an annual return of 32.67%. ITOT’s worst year over the past decade yielded -5.27% and occurred in 2018. In most years the iShares Core S&P Total U.S. Stock Market ETF provided moderate returns such as in 2014, 2012, and 2010 where annual returns amounted to 13.01%, 15.98%, and 16.15% 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.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| ITOT | $10,000 | $23,312 | 14.59% |
| IXUS | $10,000 | $14,209 | 6.09% |
A $10,000 investment in ITOT would have resulted in a final balance of $23,312. This is a profit of $13,312 over 7 years and amounts to a compound annual growth rate (CAGR) of 14.59%.
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%.
ITOT’s CAGR is 8.50 percentage points higher than that of IXUS and as a result, would have yielded $9,103 more on a $10,000 investment. Thus, ITOT outperformed IXUS by 8.50% annually.
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