The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and IUSB is a iShares N/A fund. So, what’s the difference between IXUS and IUSB? And which fund is better?
The expense ratio of IXUS is 0.03 percentage points higher than IUSB’s (0.09% vs. 0.06%). IXUS also has a high exposure to the financial services sector while IUSB is mostly comprised of AAA bonds. Overall, IXUS has provided higher returns than IUSB over the past ten years.
In this article, we’ll compare IXUS vs. IUSB. We’ll look at industry exposure and fund composition, as well as at their portfolio growth and performance. Moreover, I’ll also discuss IXUS’s and IUSB’s holdings, risk metrics, and annual returns and examine how these affect their overall returns.
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Summary
| IXUS | IUSB | |
| Name | iShares Core MSCI Total International Stock ETF | iShares Core Total USD Bond Market ETF |
| Category | Foreign Large Blend | N/A |
| Issuer | iShares | iShares |
| AUM | 29.54B | 14.49B |
| Avg. Return | 6.09% | 4.13% |
| Div. Yield | 2.13% | 2.1% |
| Expense Ratio | 0.09% | 0.06% |
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 Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.13% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.
IXUS’s dividend yield is 0.03% higher than that of IUSB (2.13% vs. 2.1%). Also, IXUS yielded on average 1.96% more per year over the past decade (6.09% vs. 4.13%). The expense ratio of IXUS is 0.03 percentage points higher than IUSB’s (0.09% vs. 0.06%).
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Fund Composition
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%.
| IUSB Bond Sectors | Weight |
| AAA | 58.32% |
| BBB | 16.98% |
| A | 12.27% |
| BB | 4.33% |
| AA | 3.36% |
| B | 2.8% |
| Others | 1.01% |
| Below B | 0.92% |
| US Government | 0.0% |
IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.
Risk Analysis
| IXUS | IUSB | |
| 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 Sharpe Ratio of 0 with a Beta of 0 and a Mean Return of 0. Its R-squared is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Alpha of 0 and a Treynor Ratio of 0.
The iShares Core Total USD Bond Market ETF (IUSB) has a Beta of 0 with a Standard Deviation of 0 and a Mean Return of 0. Its Treynor Ratio is 0 while IUSB’s Alpha is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a R-squared of 0.
IXUS’s Mean Return is 0.00 points lower than that of IUSB and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IUSB. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than IUSB’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | IUSB |
| 2020 | 11.14% | 7.59% |
| 2019 | 21.85% | 9.26% |
| 2018 | -14.55% | -0.38% |
| 2017 | 28.08% | 4.06% |
| 2016 | 4.66% | 3.78% |
| 2015 | -4.62% | 0.46% |
| 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 IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,795 | 6.09% |
| IUSB | $10,000 | $12,704 | 4.13% |
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 IUSB, the end total would have been $12,704. This equates to a $2,704 profit over 6 years and a compound annual growth rate (CAGR) of 4.13%.
IXUS’s CAGR is 1.96 percentage points higher than that of IUSB and as a result, would have yielded $2,091 more on a $10,000 investment. Thus, IXUS outperformed IUSB by 1.96% annually.
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