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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.

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Summary

IVWIXUS
NameiShares S&P 500 Growth ETFiShares Core MSCI Total International Stock ETF
CategoryLarge GrowthForeign Large Blend
IssueriSharesiShares
AUM35.72B29.54B
Avg. Return16.74%6.09%
Div. Yield0.61%2.13%
Expense Ratio0.18%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%).

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Fund Composition

Industry Exposure

IVW vs. IXUS - Industry Exposure

IVWIXUS
Technology37.8%13.24%
Industrials5.72%12.78%
Energy0.06%4.39%
Communication Services15.44%7.09%
Utilities0.47%2.95%
Healthcare11.88%9.29%
Consumer Defensive3.84%8.19%
Real Estate1.11%3.66%
Financial Services6.78%17.34%
Consumer Cyclical15.25%12.57%
Basic Materials1.65%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 HoldingsWeight
Apple Inc11.46%
Microsoft Corp10.75%
Amazon.com Inc7.14%
Facebook Inc Class A4.28%
Alphabet Inc Class A4.06%
Alphabet Inc Class C3.86%
Tesla Inc2.65%
NVIDIA Corp2.43%
PayPal Holdings Inc1.62%
Adobe Inc1.49%

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 HoldingsWeight
Taiwan Semiconductor Manufacturing Co Ltd1.64%
Tencent Holdings Ltd1.35%
Alibaba Group Holding Ltd Ordinary Shares1.34%
Nestle SA1.1%
Samsung Electronics Co Ltd1.06%
ASML Holding NV0.9%
Roche Holding AG0.81%
LVMH Moet Hennessy Louis Vuitton SE0.67%
Novartis AG0.62%
Toyota Motor Corp0.59%

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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Risk Analysis

IVWIXUS
Mean Return1.440
R-squared93.820
Std. Deviation13.770
Alpha2.190
Beta0.980
Sharpe Ratio1.210
Treynor Ratio17.240

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.

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Performance

Annual Returns

IVW vs. IXUS - Annual Returns

YearIVWIXUS
202033.21%11.14%
201930.91%21.85%
2018-0.17%-14.55%
201727.2%28.08%
20166.74%4.66%
20155.33%-4.62%
201414.67%-3.96%
201332.48%15.85%
201214.39%0.0%
20114.49%0.0%
201014.84%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

FundInitial BalanceFinal BalanceCAGR
IVW$10,000$28,54816.74%
IXUS$10,000$14,2096.09%

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.


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