The iShares Core MSCI Total International Stock ETF (IXUS) and the ARK Innovation ETF (ARKK) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and ARKK is a ARK ETF Trust Mid-Cap Growth fund. So, what’s the difference between IXUS and ARKK? And which fund is better?
The expense ratio of IXUS is 0.66 percentage points lower than ARKK’s (0.09% vs. 0.75%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than ARKK over the past ten years.
In this article, we’ll compare IXUS vs. ARKK. We’ll look at fund composition and annual returns, as well as at their risk metrics and portfolio growth. Moreover, I’ll also discuss IXUS’s and ARKK’s performance, industry exposure, and holdings and examine how these affect their overall returns.
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|Name||iShares Core MSCI Total International Stock ETF||ARK Innovation ETF|
|Category||Foreign Large Blend||Mid-Cap Growth|
|Issuer||iShares||ARK ETF Trust|
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%.
The ARK Innovation ETF (ARKK) is a Mid-Cap Growth fund that is issued by ARK ETF Trust. It currently has 25.52B total assets under management and has yielded an average annual return of 55.45% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.75%.
IXUS’s dividend yield is 2.13% higher than that of ARKK (2.13% vs. 0.0%). Also, IXUS yielded on average 49.36% less per year over the past decade (6.09% vs. 55.45%). The expense ratio of IXUS is 0.66 percentage points lower than ARKK’s (0.09% vs. 0.75%).
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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%.
The ARK Innovation ETF (ARKK) has the most exposure to the Technology sector at 30.5%. This is followed by Healthcare and Communication Services at 29.47% and 25.01% respectively. Utilities (0.0%), Energy (0.0%), and Financial Services (0.04%) only make up 0.04% of the fund’s total assets.
ARKK’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Industrials, Consumer Cyclical, and Communication Services stocks at 0.51%, 0.93%, 2.11%, 11.42%, and 25.01%.
IXUS is 17.30% more exposed to the Financial Services sector than ARKK (17.34% vs 0.04%). IXUS’s exposure to Technology and Industrials stocks is 17.26% lower and 10.67% higher respectively (13.24% vs. 30.5% and 12.78% vs. 2.11%). In total, Real Estate, Energy, and Communication Services also make up 10.38% less of the fund’s holdings compared to ARKK (15.14% vs. 25.52%).
|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%.
|Roku Inc Class A||6.48%|
|Teladoc Health Inc||5.76%|
|Square Inc A||4.37%|
|Zoom Video Communications Inc||4.36%|
|Shopify Inc A||4.27%|
|Spotify Technology SA||3.68%|
|Twilio Inc A||3.66%|
|Coinbase Global Inc Ordinary Shares – Class A||3.65%|
|Unity Software Inc Ordinary Shares||3.41%|
ARKK’s Top Holdings are Tesla Inc, Roku Inc Class A, Teladoc Health Inc, Square Inc A, and Zoom Video Communications Inc at 9.56%, 6.48%, 5.76%, 4.37%, and 4.36%.
Shopify Inc A (4.27%), Spotify Technology SA (3.68%), and Twilio Inc A (3.66%) have a slightly smaller but still significant weight. Coinbase Global Inc Ordinary Shares – Class A and Unity Software Inc Ordinary Shares are also represented in the ARKK’s holdings at 3.65% and 3.41%.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Beta of 0 with a Standard Deviation of 0 and a R-squared of 0. Its Treynor Ratio is 0 while IXUS’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Alpha of 0.
The ARK Innovation ETF (ARKK) has a Alpha of 0 with a Mean Return of 0 and a Standard Deviation of 0. Its Beta is 0 while ARKK’s R-squared is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Sharpe Ratio of 0.
IXUS’s Mean Return is 0.00 points lower than that of ARKK and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than ARKK. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than ARKK’s Alpha and Beta.
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IXUS had its best year in 2017 with an annual return of 28.08%. IXUS’s worst year over the past decade yielded -14.55% and occurred in 2018. In most years the iShares Core MSCI Total International Stock ETF provided moderate returns such as in 2011, 2010, and 2016 where annual returns amounted to 0.0%, 0.0%, and 4.66% respectively.
The year 2020 was the strongest year for ARKK, returning 152.52% on an annual basis. The poorest year for ARKK in the last ten years was 2016, with a yield of -1.96%. Most years the ARK Innovation ETF has given investors modest returns, such as in 2011, 2010, and 2018, when gains were 0.0%, 0.0%, and 3.58% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IXUS would have resulted in a final balance of $15,512. This is a profit of $5,512 over 5 years and amounts to a compound annual growth rate (CAGR) of 6.09%.
With a $10,000 investment in ARKK, the end total would have been $65,218. This equates to a $55,218 profit over 5 years and a compound annual growth rate (CAGR) of 55.45%.
IXUS’s CAGR is 49.36 percentage points lower than that of ARKK and as a result, would have yielded $49,706 less on a $10,000 investment. Thus, IXUS performed worse than ARKK by 49.36% annually.
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