The iShares Russell 1000 Value ETF (IWD) and the iShares Core MSCI Total International Stock ETF (IXUS) are both among the Top 100 ETFs. IWD is a iShares Large Value fund and IXUS is a iShares Foreign Large Blend fund. So, what’s the difference between IWD and IXUS? And which fund is better?
The expense ratio of IWD is 0.10 percentage points higher than IXUS’s (0.19% vs. 0.09%). IWD also has a higher exposure to the financial services sector and a higher standard deviation. Overall, IWD has provided higher returns than IXUS over the past ten years.
In this article, we’ll compare IWD vs. IXUS. We’ll look at annual returns and risk metrics, as well as at their industry exposure and performance. Moreover, I’ll also discuss IWD’s and IXUS’s holdings, fund composition, and portfolio growth and examine how these affect their overall returns.
Summary
| IWD | IXUS | |
| Name | iShares Russell 1000 Value ETF | iShares Core MSCI Total International Stock ETF |
| Category | Large Value | Foreign Large Blend |
| Issuer | iShares | iShares |
| AUM | 54.1B | 29.54B |
| Avg. Return | 11.40% | 6.09% |
| Div. Yield | 1.57% | 2.13% |
| Expense Ratio | 0.19% | 0.09% |
The iShares Russell 1000 Value ETF (IWD) is a Large Value fund that is issued by iShares. It currently has 54.1B total assets under management and has yielded an average annual return of 11.40% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.19%.
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%.
IWD’s dividend yield is 0.56% lower than that of IXUS (1.57% vs. 2.13%). Also, IWD yielded on average 5.31% more per year over the past decade (11.40% vs. 6.09%). The expense ratio of IWD is 0.10 percentage points higher than IXUS’s (0.19% vs. 0.09%).
Fund Composition
Industry Exposure
| IWD | IXUS | |
| Technology | 10.28% | 13.24% |
| Industrials | 11.77% | 12.78% |
| Energy | 4.76% | 4.39% |
| Communication Services | 8.67% | 7.09% |
| Utilities | 4.88% | 2.95% |
| Healthcare | 17.78% | 9.29% |
| Consumer Defensive | 7.76% | 8.19% |
| Real Estate | 4.94% | 3.66% |
| Financial Services | 20.43% | 17.34% |
| Consumer Cyclical | 5.62% | 12.57% |
| Basic Materials | 3.1% | 8.5% |
The iShares Russell 1000 Value ETF (IWD) has the most exposure to the Financial Services sector at 20.43%. This is followed by Healthcare and Industrials at 17.78% and 11.77% respectively. Energy (4.76%), Utilities (4.88%), and Real Estate (4.94%) only make up 14.58% of the fund’s total assets.
IWD’s mid-section with moderate exposure is comprised of Consumer Cyclical, Consumer Defensive, Communication Services, Technology, and Industrials stocks at 5.62%, 7.76%, 8.67%, 10.28%, and 11.77%.
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%.
IWD is 3.09% more exposed to the Financial Services sector than IXUS (20.43% vs 17.34%). IWD’s exposure to Healthcare and Industrials stocks is 8.49% higher and 1.01% lower respectively (17.78% vs. 9.29% and 11.77% vs. 12.78%). In total, Energy, Utilities, and Real Estate also make up 3.58% more of the fund’s holdings compared to IXUS (14.58% vs. 11.00%).
Holdings
| IWD Holdings | Weight |
| Berkshire Hathaway Inc Class B | 2.58% |
| JPMorgan Chase & Co | 2.25% |
| Johnson & Johnson | 2.24% |
| UnitedHealth Group Inc | 1.78% |
| Procter & Gamble Co | 1.71% |
| The Walt Disney Co | 1.5% |
| Bank of America Corp | 1.43% |
| Comcast Corp Class A | 1.33% |
| Exxon Mobil Corp | 1.2% |
| Pfizer Inc | 1.18% |
IWD’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.58%, 2.25%, 2.24%, 1.78%, and 1.71%.
The Walt Disney Co (1.5%), Bank of America Corp (1.43%), and Comcast Corp Class A (1.33%) have a slightly smaller but still significant weight. Exxon Mobil Corp and Pfizer Inc are also represented in the IWD’s holdings at 1.2% and 1.18%.
| 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
| IWD | IXUS | |
| Mean Return | 1.03 | 0 |
| R-squared | 92.38 | 0 |
| Std. Deviation | 14.35 | 0 |
| Alpha | -3.23 | 0 |
| Beta | 1.02 | 0 |
| Sharpe Ratio | 0.81 | 0 |
| Treynor Ratio | 11.06 | 0 |
The iShares Russell 1000 Value ETF (IWD) has a Alpha of -3.23 with a Sharpe Ratio of 0.81 and a Beta of 1.02. Its Mean Return is 1.03 while IWD’s Standard Deviation is 14.35. Furthermore, the fund has a Treynor Ratio of 11.06 and a R-squared of 92.38.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Standard Deviation of 0 with a Beta of 0 and a Alpha of 0. Its R-squared is 0 while IXUS’s Treynor Ratio is 0. Furthermore, the fund has a Mean Return of 0 and a Sharpe Ratio of 0.
IWD’s Mean Return is 1.03 points higher than that of IXUS and its R-squared is 92.38 points higher. With a Standard Deviation of 14.35, IWD is slightly more volatile than IXUS. The Alpha and Beta of IWD are 3.23 points lower and 1.02 points higher than IXUS’s Alpha and Beta.
Performance
Annual Returns
| Year | IWD | IXUS |
| 2020 | 2.67% | 11.14% |
| 2019 | 26.34% | 21.85% |
| 2018 | -8.4% | -14.55% |
| 2017 | 13.47% | 28.08% |
| 2016 | 17.09% | 4.66% |
| 2015 | -3.95% | -4.62% |
| 2014 | 13.21% | -3.96% |
| 2013 | 32.18% | 15.85% |
| 2012 | 17.28% | 0.0% |
| 2011 | 0.21% | 0.0% |
| 2010 | 15.3% | 0.0% |
IWD had its best year in 2013 with an annual return of 32.18%. IWD’s worst year over the past decade yielded -8.4% and occurred in 2018. In most years the iShares Russell 1000 Value ETF provided moderate returns such as in 2014, 2017, and 2010 where annual returns amounted to 13.21%, 13.47%, and 15.3% 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 |
| IWD | $10,000 | $17,165 | 11.40% |
| IXUS | $10,000 | $14,209 | 6.09% |
A $10,000 investment in IWD would have resulted in a final balance of $17,165. This is a profit of $7,165 over 7 years and amounts to a compound annual growth rate (CAGR) of 11.40%.
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%.
IWD’s CAGR is 5.31 percentage points higher than that of IXUS and as a result, would have yielded $2,956 more on a $10,000 investment. Thus, IWD outperformed IXUS by 5.31% annually.
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