The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares Core Dividend Growth ETF (DGRO) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and DGRO is a iShares Large Value fund. So, what’s the difference between IXUS and DGRO? And which fund is better?
The expense ratio of IXUS is 0.01 percentage points higher than DGRO’s (0.09% vs. 0.08%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than DGRO over the past ten years.
In this article, we’ll compare IXUS vs. DGRO. We’ll look at holdings and fund composition, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss IXUS’s and DGRO’s portfolio growth, performance, and industry exposure and examine how these affect their overall returns.
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Summary
| IXUS | DGRO | |
| Name | iShares Core MSCI Total International Stock ETF | iShares Core Dividend Growth ETF |
| Category | Foreign Large Blend | Large Value |
| Issuer | iShares | iShares |
| AUM | 29.54B | 20B |
| Avg. Return | 6.09% | 12.46% |
| Div. Yield | 2.13% | 2.04% |
| Expense Ratio | 0.09% | 0.08% |
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 iShares Core Dividend Growth ETF (DGRO) is a Large Value fund that is issued by iShares. It currently has 20B total assets under management and has yielded an average annual return of 12.46% over the past 10 years. The fund has a dividend yield of 2.04% with an expense ratio of 0.08%.
IXUS’s dividend yield is 0.09% higher than that of DGRO (2.13% vs. 2.04%). Also, IXUS yielded on average 6.37% less per year over the past decade (6.09% vs. 12.46%). The expense ratio of IXUS is 0.01 percentage points higher than DGRO’s (0.09% vs. 0.08%).
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Fund Composition
Industry Exposure
| IXUS | DGRO | |
| Technology | 13.24% | 18.98% |
| Industrials | 12.78% | 12.52% |
| Energy | 4.39% | 0.11% |
| Communication Services | 7.09% | 4.53% |
| Utilities | 2.95% | 7.34% |
| Healthcare | 9.29% | 17.55% |
| Consumer Defensive | 8.19% | 10.24% |
| Real Estate | 3.66% | 0.0% |
| Financial Services | 17.34% | 18.47% |
| Consumer Cyclical | 12.57% | 7.42% |
| Basic Materials | 8.5% | 2.83% |
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 iShares Core Dividend Growth ETF (DGRO) has the most exposure to the Technology sector at 18.98%. This is followed by Financial Services and Healthcare at 18.47% and 17.55% respectively. Energy (0.11%), Basic Materials (2.83%), and Communication Services (4.53%) only make up 7.47% of the fund’s total assets.
DGRO’s mid-section with moderate exposure is comprised of Utilities, Consumer Cyclical, Consumer Defensive, Industrials, and Healthcare stocks at 7.34%, 7.42%, 10.24%, 12.52%, and 17.55%.
IXUS is 1.13% less exposed to the Financial Services sector than DGRO (17.34% vs 18.47%). IXUS’s exposure to Technology and Industrials stocks is 5.74% lower and 0.26% higher respectively (13.24% vs. 18.98% and 12.78% vs. 12.52%). In total, Real Estate, Energy, and Communication Services also make up 10.50% more of the fund’s holdings compared to DGRO (15.14% vs. 4.64%).
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%.
| DGRO Holdings | Weight |
| Microsoft Corp | 3.29% |
| Apple Inc | 3.26% |
| Pfizer Inc | 2.89% |
| Johnson & Johnson | 2.87% |
| Procter & Gamble Co | 2.79% |
| Verizon Communications Inc | 2.68% |
| JPMorgan Chase & Co | 2.57% |
| The Home Depot Inc | 2.35% |
| Merck & Co Inc | 2.11% |
| Cisco Systems Inc | 1.98% |
DGRO’s Top Holdings are Microsoft Corp, Apple Inc, Pfizer Inc, Johnson & Johnson, and Procter & Gamble Co at 3.29%, 3.26%, 2.89%, 2.87%, and 2.79%.
Verizon Communications Inc (2.68%), JPMorgan Chase & Co (2.57%), and The Home Depot Inc (2.35%) have a slightly smaller but still significant weight. Merck & Co Inc and Cisco Systems Inc are also represented in the DGRO’s holdings at 2.11% and 1.98%.
Risk Analysis
| IXUS | DGRO | |
| Mean Return | 0 | 0 |
| R-squared | 0 | 0 |
| Std. Deviation | 0 | 0 |
| Alpha | 0 | 0 |
| Beta | 0 | 0 |
| Sharpe Ratio | 0 | 0 |
| Treynor Ratio | 0 | 0 |
The iShares Core MSCI Total International Stock ETF (IXUS) has a Alpha of 0 with a R-squared of 0 and a Treynor Ratio of 0. Its Mean Return is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Beta of 0 and a Sharpe Ratio of 0.
The iShares Core Dividend Growth ETF (DGRO) has a Mean Return of 0 with a Standard Deviation of 0 and a R-squared of 0. Its Beta is 0 while DGRO’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Treynor Ratio of 0.
IXUS’s Mean Return is 0.00 points lower than that of DGRO and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than DGRO. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than DGRO’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | DGRO |
| 2020 | 11.14% | 9.47% |
| 2019 | 21.85% | 30.02% |
| 2018 | -14.55% | -2.24% |
| 2017 | 28.08% | 22.84% |
| 2016 | 4.66% | 15.27% |
| 2015 | -4.62% | -0.62% |
| 2014 | -3.96% | 0.0% |
| 2013 | 15.85% | 0.0% |
| 2012 | 0.0% | 0.0% |
| 2011 | 0.0% | 0.0% |
| 2010 | 0.0% | 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 2019 was the strongest year for DGRO, returning 30.02% on an annual basis. The poorest year for DGRO in the last ten years was 2018, with a yield of -2.24%. Most years the iShares Core Dividend Growth ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,795 | 6.09% |
| DGRO | $10,000 | $19,580 | 12.46% |
A $10,000 investment in IXUS would have resulted in a final balance of $14,795. This is a profit of $4,795 over 6 years and amounts to a compound annual growth rate (CAGR) of 6.09%.
With a $10,000 investment in DGRO, the end total would have been $19,580. This equates to a $9,580 profit over 6 years and a compound annual growth rate (CAGR) of 12.46%.
IXUS’s CAGR is 6.37 percentage points lower than that of DGRO and as a result, would have yielded $4,785 less on a $10,000 investment. Thus, IXUS performed worse than DGRO by 6.37% annually.
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