The iShares Core MSCI Total International Stock ETF (IXUS) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IXUS and DIA? And which fund is better?
The expense ratio of IXUS is 0.07 percentage points lower than DIA’s (0.09% vs. 0.16%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than DIA over the past ten years.
In this article, we’ll compare IXUS vs. DIA. We’ll look at annual returns and holdings, as well as at their performance and fund composition. Moreover, I’ll also discuss IXUS’s and DIA’s industry exposure, risk metrics, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Core MSCI Total International Stock ETF||SPDR Dow Jones Industrial Average ETF Trust|
|Category||Foreign Large Blend||Large Value|
|Issuer||iShares||SPDR State Street Global Advisors|
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 SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.
IXUS’s dividend yield is 0.52% higher than that of DIA (2.13% vs. 1.61%). Also, IXUS yielded on average 7.27% less per year over the past decade (6.09% vs. 13.35%). The expense ratio of IXUS is 0.07 percentage points lower than DIA’s (0.09% vs. 0.16%).
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 SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.
DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.
IXUS is 3.34% less exposed to the Financial Services sector than DIA (17.34% vs 20.68%). IXUS’s exposure to Technology and Industrials stocks is 4.08% lower and 3.92% lower respectively (13.24% vs. 17.32% and 12.78% vs. 16.7%). In total, Real Estate, Energy, and Communication Services also make up 8.72% more of the fund’s holdings compared to DIA (15.14% vs. 6.42%).
|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%.
|UnitedHealth Group Inc||7.63%|
|Goldman Sachs Group Inc||7.23%|
|The Home Depot Inc||6.07%|
|Visa Inc Class A||4.45%|
|Honeywell International Inc||4.18%|
DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.
Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Sharpe Ratio of 0 with a Treynor Ratio of 0 and a Alpha of 0. Its Mean Return is 0 while IXUS’s R-squared is 0. Furthermore, the fund has a Beta of 0 and a Standard Deviation of 0.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a Mean Return of 1.13 with a R-squared of 93.31 and a Sharpe Ratio of 0.94. Its Treynor Ratio is 13.07 while DIA’s Beta is 0.97. Furthermore, the fund has a Standard Deviation of 13.68 and a Alpha of -0.94.
IXUS’s Mean Return is 1.13 points lower than that of DIA and its R-squared is 93.31 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than DIA. The Alpha and Beta of IXUS are 0.94 points higher and 0.97 points lower than DIA’s Alpha and Beta.
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 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IXUS would have resulted in a final balance of $14,209. This is a profit of $4,209 over 7 years and amounts to a compound annual growth rate (CAGR) of 6.09%.
With a $10,000 investment in DIA, the end total would have been $21,636. This equates to a $11,636 profit over 7 years and a compound annual growth rate (CAGR) of 13.35%.
IXUS’s CAGR is 7.27 percentage points lower than that of DIA and as a result, would have yielded $7,427 less on a $10,000 investment. Thus, IXUS performed worse than DIA by 7.27% annually.
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