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IXUS vs. ARKK: What’s The Difference?

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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Summary

IXUSARKK
NameiShares Core MSCI Total International Stock ETFARK Innovation ETF
CategoryForeign Large BlendMid-Cap Growth
IssueriSharesARK ETF Trust
AUM29.54B25.52B
Avg. Return6.09%55.45%
Div. Yield2.13%0.0%
Expense Ratio0.09%0.75%

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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Fund Composition

Industry Exposure

IXUS vs. ARKK - Industry Exposure

IXUSARKK
Technology13.24%30.5%
Industrials12.78%2.11%
Energy4.39%0.0%
Communication Services7.09%25.01%
Utilities2.95%0.0%
Healthcare9.29%29.47%
Consumer Defensive8.19%0.93%
Real Estate3.66%0.51%
Financial Services17.34%0.04%
Consumer Cyclical12.57%11.42%
Basic Materials8.5%0.0%

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%).

Holdings

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%.

ARKK - Holdings

ARKK HoldingsWeight
Tesla Inc9.56%
Roku Inc Class A6.48%
Teladoc Health Inc5.76%
Square Inc A4.37%
Zoom Video Communications Inc4.36%
Shopify Inc A4.27%
Spotify Technology SA3.68%
Twilio Inc A3.66%
Coinbase Global Inc Ordinary Shares – Class A3.65%
Unity Software Inc Ordinary Shares3.41%

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%.

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Risk Analysis

IXUSARKK
Mean Return00
R-squared00
Std. Deviation00
Alpha00
Beta00
Sharpe Ratio00
Treynor Ratio00

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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Performance

Annual Returns

IXUS vs. ARKK - Annual Returns

YearIXUSARKK
202011.14%152.52%
201921.85%35.73%
2018-14.55%3.58%
201728.08%87.38%
20164.66%-1.96%
2015-4.62%3.76%
2014-3.96%0.0%
201315.85%0.0%
20120.0%0.0%
20110.0%0.0%
20100.0%0.0%

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.

Portfolio Growth

IXUS vs. ARKK - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IXUS$10,000$15,5126.09%
ARKK$10,000$65,21855.45%

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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