The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares MSCI EAFE Value ETF (EFV) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and EFV is a iShares Foreign Large Value fund. So, what’s the difference between IXUS and EFV? And which fund is better?
The expense ratio of IXUS is 0.30 percentage points lower than EFV’s (0.09% vs. 0.39%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided higher returns than EFV over the past ten years.
In this article, we’ll compare IXUS vs. EFV. We’ll look at industry exposure and portfolio growth, as well as at their performance and risk metrics. Moreover, I’ll also discuss IXUS’s and EFV’s annual returns, fund composition, and holdings and examine how these affect their overall returns.
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|Name||iShares Core MSCI Total International Stock ETF||iShares MSCI EAFE Value ETF|
|Category||Foreign Large Blend||Foreign Large Value|
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 MSCI EAFE Value ETF (EFV) is a Foreign Large Value fund that is issued by iShares. It currently has 14.37B total assets under management and has yielded an average annual return of 3.99% over the past 10 years. The fund has a dividend yield of 2.94% with an expense ratio of 0.39%.
IXUS’s dividend yield is 0.81% lower than that of EFV (2.13% vs. 2.94%). Also, IXUS yielded on average 2.09% more per year over the past decade (6.09% vs. 3.99%). The expense ratio of IXUS is 0.30 percentage points lower than EFV’s (0.09% vs. 0.39%).
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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 iShares MSCI EAFE Value ETF (EFV) has the most exposure to the Financial Services sector at 26.55%. This is followed by Industrials and Basic Materials at 11.6% and 9.59% respectively. Real Estate (5.06%), Utilities (6.14%), and Communication Services (6.46%) only make up 17.66% of the fund’s total assets.
EFV’s mid-section with moderate exposure is comprised of Energy, Consumer Defensive, Consumer Cyclical, Healthcare, and Basic Materials stocks at 6.6%, 6.82%, 9.0%, 9.19%, and 9.59%.
IXUS is 9.21% less exposed to the Financial Services sector than EFV (17.34% vs 26.55%). IXUS’s exposure to Technology and Industrials stocks is 10.26% higher and 1.18% higher respectively (13.24% vs. 2.98% and 12.78% vs. 11.6%). In total, Real Estate, Energy, and Communication Services also make up 2.98% less of the fund’s holdings compared to EFV (15.14% vs. 18.12%).
|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%.
|Toyota Motor Corp||2.21%|
|Commonwealth Bank of Australia||1.59%|
|HSBC Holdings PLC||1.4%|
|Rio Tinto PLC||1.1%|
EFV’s Top Holdings are Novartis AG, Toyota Motor Corp, Commonwealth Bank of Australia, Siemens AG, and Sanofi SA at 2.41%, 2.21%, 1.59%, 1.45%, and 1.42%.
HSBC Holdings PLC (1.4%), TotalEnergies SE (1.35%), and Allianz SE (1.23%) have a slightly smaller but still significant weight. GlaxoSmithKline PLC and Rio Tinto PLC are also represented in the EFV’s holdings at 1.18% and 1.1%.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Beta of 0 with a Sharpe Ratio 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 Standard Deviation of 0 and a Alpha of 0.
The iShares MSCI EAFE Value ETF (EFV) has a Treynor Ratio of 2.92 with a R-squared of 92.15 and a Sharpe Ratio of 0.26. Its Beta is 1.05 while EFV’s Standard Deviation is 16.53. Furthermore, the fund has a Mean Return of 0.42 and a Alpha of -1.77.
IXUS’s Mean Return is 0.42 points lower than that of EFV and its R-squared is 92.15 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than EFV. The Alpha and Beta of IXUS are 1.77 points higher and 1.05 points lower than EFV’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 2013 was the strongest year for EFV, returning 22.61% on an annual basis. The poorest year for EFV in the last ten years was 2018, with a yield of -14.88%. Most years the iShares MSCI EAFE Value ETF has given investors modest returns, such as in 2020, 2010, and 2016, when gains were -2.78%, 3.18%, and 4.87% 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 EFV, the end total would have been $10,832. This equates to a $832 profit over 7 years and a compound annual growth rate (CAGR) of 3.99%.
IXUS’s CAGR is 2.09 percentage points higher than that of EFV and as a result, would have yielded $3,377 more on a $10,000 investment. Thus, IXUS outperformed EFV by 2.09% annually.
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