IVW vs. IXUS: What’s The Difference?

The iShares S&P 500 Growth ETF (IVW) and the iShares Core MSCI Total International Stock ETF (IXUS) are both among the Top 100 ETFs. IVW is a iShares Large Growth fund and IXUS is a iShares Foreign Large Blend fund. So, what’s the difference between IVW and IXUS? And which fund is better?

The expense ratio of IVW is 0.09 percentage points higher than IXUS’s (0.18% vs. 0.09%). IVW also has a higher exposure to the technology sector and a higher standard deviation. Overall, IVW has provided higher returns than IXUS over the past ten years.

In this article, we’ll compare IVW vs. IXUS. We’ll look at annual returns and performance, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss IVW’s and IXUS’s holdings, portfolio growth, and industry exposure and examine how these affect their overall returns.

Summary

IVW IXUS
Name iShares S&P 500 Growth ETF iShares Core MSCI Total International Stock ETF
Category Large Growth Foreign Large Blend
Issuer iShares iShares
AUM 35.72B 29.54B
Avg. Return 16.74% 6.09%
Div. Yield 0.61% 2.13%
Expense Ratio 0.18% 0.09%

The iShares S&P 500 Growth ETF (IVW) is a Large Growth fund that is issued by iShares. It currently has 35.72B total assets under management and has yielded an average annual return of 16.74% over the past 10 years. The fund has a dividend yield of 0.61% with an expense ratio of 0.18%.

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%.

IVW’s dividend yield is 1.52% lower than that of IXUS (0.61% vs. 2.13%). Also, IVW yielded on average 10.65% more per year over the past decade (16.74% vs. 6.09%). The expense ratio of IVW is 0.09 percentage points higher than IXUS’s (0.18% vs. 0.09%).

Fund Composition

Industry Exposure

IVW vs. IXUS - Industry Exposure

IVW IXUS
Technology 37.8% 13.24%
Industrials 5.72% 12.78%
Energy 0.06% 4.39%
Communication Services 15.44% 7.09%
Utilities 0.47% 2.95%
Healthcare 11.88% 9.29%
Consumer Defensive 3.84% 8.19%
Real Estate 1.11% 3.66%
Financial Services 6.78% 17.34%
Consumer Cyclical 15.25% 12.57%
Basic Materials 1.65% 8.5%

The iShares S&P 500 Growth ETF (IVW) has the most exposure to the Technology sector at 37.8%. This is followed by Communication Services and Consumer Cyclical at 15.44% and 15.25% respectively. Utilities (0.47%), Real Estate (1.11%), and Basic Materials (1.65%) only make up 3.23% of the fund’s total assets.

IVW’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 3.84%, 5.72%, 6.78%, 11.88%, and 15.25%.

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%.

IVW is 24.56% more exposed to the Technology sector than IXUS (37.8% vs 13.24%). IVW’s exposure to Communication Services and Consumer Cyclical stocks is 8.35% higher and 2.68% higher respectively (15.44% vs. 7.09% and 15.25% vs. 12.57%). In total, Utilities, Real Estate, and Basic Materials also make up 11.88% less of the fund’s holdings compared to IXUS (3.23% vs. 15.11%).

Holdings

IVW - Holdings

IVW Holdings Weight
Apple Inc 11.46%
Microsoft Corp 10.75%
Amazon.com Inc 7.14%
Facebook Inc Class A 4.28%
Alphabet Inc Class A 4.06%
Alphabet Inc Class C 3.86%
Tesla Inc 2.65%
NVIDIA Corp 2.43%
PayPal Holdings Inc 1.62%
Adobe Inc 1.49%

IVW’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 11.46%, 10.75%, 7.14%, 4.28%, and 4.06%.

Alphabet Inc Class C (3.86%), Tesla Inc (2.65%), and NVIDIA Corp (2.43%) have a slightly smaller but still significant weight. PayPal Holdings Inc and Adobe Inc are also represented in the IVW’s holdings at 1.62% and 1.49%.

IXUS - Holdings

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

IVW IXUS
Mean Return 1.44 0
R-squared 93.82 0
Std. Deviation 13.77 0
Alpha 2.19 0
Beta 0.98 0
Sharpe Ratio 1.21 0
Treynor Ratio 17.24 0

The iShares S&P 500 Growth ETF (IVW) has a Beta of 0.98 with a Sharpe Ratio of 1.21 and a Alpha of 2.19. Its R-squared is 93.82 while IVW’s Mean Return is 1.44. Furthermore, the fund has a Standard Deviation of 13.77 and a Treynor Ratio of 17.24.

The iShares Core MSCI Total International Stock ETF (IXUS) has a R-squared of 0 with a Standard Deviation of 0 and a Alpha of 0. Its Beta is 0 while IXUS’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Treynor Ratio of 0.

IVW’s Mean Return is 1.44 points higher than that of IXUS and its R-squared is 93.82 points higher. With a Standard Deviation of 13.77, IVW is slightly more volatile than IXUS. The Alpha and Beta of IVW are 2.19 points higher and 0.98 points higher than IXUS’s Alpha and Beta.

Performance

Annual Returns

IVW vs. IXUS - Annual Returns

Year IVW IXUS
2020 33.21% 11.14%
2019 30.91% 21.85%
2018 -0.17% -14.55%
2017 27.2% 28.08%
2016 6.74% 4.66%
2015 5.33% -4.62%
2014 14.67% -3.96%
2013 32.48% 15.85%
2012 14.39% 0.0%
2011 4.49% 0.0%
2010 14.84% 0.0%

IVW had its best year in 2020 with an annual return of 33.21%. IVW’s worst year over the past decade yielded -0.17% and occurred in 2018. In most years the iShares S&P 500 Growth ETF provided moderate returns such as in 2012, 2014, and 2010 where annual returns amounted to 14.39%, 14.67%, and 14.84% 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

IVW vs. IXUS - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IVW $10,000 $28,548 16.74%
IXUS $10,000 $14,209 6.09%

A $10,000 investment in IVW would have resulted in a final balance of $28,548. This is a profit of $18,548 over 7 years and amounts to a compound annual growth rate (CAGR) of 16.74%.

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%.

IVW’s CAGR is 10.65 percentage points higher than that of IXUS and as a result, would have yielded $14,339 more on a $10,000 investment. Thus, IVW outperformed IXUS by 10.65% annually.


Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!

2) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).

3) If you are interested in crypto, check out Gemini. I've started allocating a small amount of assets to the growing crypto space and Gemini has just been a breeze to use. Once you register, make sure to also open an Active Trader account to buy crypto at the lowest fees on the market (just 0.03%!).

To see all of my most up-to-date recommendations, check out the Recommended Tools section.

Leave a Reply