IXUS vs. IVE: What’s The Difference?

The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares S&P 500 Value ETF (IVE) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and IVE is a iShares Large Value fund. So, what’s the difference between IXUS and IVE? And which fund is better?

The expense ratio of IXUS is 0.09 percentage points lower than IVE’s (0.09% vs. 0.18%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than IVE over the past ten years.

In this article, we’ll compare IXUS vs. IVE. We’ll look at industry exposure and performance, as well as at their fund composition and holdings. Moreover, I’ll also discuss IXUS’s and IVE’s portfolio growth, risk metrics, and annual returns and examine how these affect their overall returns.

Summary

IXUS IVE
Name iShares Core MSCI Total International Stock ETF iShares S&P 500 Value ETF
Category Foreign Large Blend Large Value
Issuer iShares iShares
AUM 29.54B 22.4B
Avg. Return 6.09% 11.68%
Div. Yield 2.13% 1.88%
Expense Ratio 0.09% 0.18%

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 S&P 500 Value ETF (IVE) is a Large Value fund that is issued by iShares. It currently has 22.4B total assets under management and has yielded an average annual return of 11.68% over the past 10 years. The fund has a dividend yield of 1.88% with an expense ratio of 0.18%.

IXUS’s dividend yield is 0.25% higher than that of IVE (2.13% vs. 1.88%). Also, IXUS yielded on average 5.60% less per year over the past decade (6.09% vs. 11.68%). The expense ratio of IXUS is 0.09 percentage points lower than IVE’s (0.09% vs. 0.18%).

Fund Composition

Industry Exposure

IXUS vs. IVE - Industry Exposure

IXUS IVE
Technology 13.24% 9.41%
Industrials 12.78% 12.19%
Energy 4.39% 5.43%
Communication Services 7.09% 6.4%
Utilities 2.95% 4.82%
Healthcare 9.29% 15.4%
Consumer Defensive 8.19% 9.23%
Real Estate 3.66% 4.38%
Financial Services 17.34% 22.06%
Consumer Cyclical 12.57% 7.68%
Basic Materials 8.5% 2.99%

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 S&P 500 Value ETF (IVE) has the most exposure to the Financial Services sector at 22.06%. This is followed by Healthcare and Industrials at 15.4% and 12.19% respectively. Real Estate (4.38%), Utilities (4.82%), and Energy (5.43%) only make up 14.63% of the fund’s total assets.

IVE’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Consumer Defensive, Technology, and Industrials stocks at 6.4%, 7.68%, 9.23%, 9.41%, and 12.19%.

IXUS is 4.72% less exposed to the Financial Services sector than IVE (17.34% vs 22.06%). IXUS’s exposure to Technology and Industrials stocks is 3.83% higher and 0.59% higher respectively (13.24% vs. 9.41% and 12.78% vs. 12.19%). In total, Real Estate, Energy, and Communication Services also make up 1.07% less of the fund’s holdings compared to IVE (15.14% vs. 16.21%).

Holdings

IXUS - 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%.

IVE - Holdings

IVE Holdings Weight
Berkshire Hathaway Inc Class B 3.05%
JPMorgan Chase & Co 2.65%
The Walt Disney Co 1.85%
Bank of America Corp 1.67%
Johnson & Johnson 1.57%
Exxon Mobil Corp 1.41%
Pfizer Inc 1.38%
Cisco Systems Inc 1.35%
Verizon Communications Inc 1.33%
Intel Corp 1.25%

IVE’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, The Walt Disney Co, Bank of America Corp, and Johnson & Johnson at 3.05%, 2.65%, 1.85%, 1.67%, and 1.57%.

Exxon Mobil Corp (1.41%), Pfizer Inc (1.38%), and Cisco Systems Inc (1.35%) have a slightly smaller but still significant weight. Verizon Communications Inc and Intel Corp are also represented in the IVE’s holdings at 1.33% and 1.25%.

Risk Analysis

IXUS IVE
Mean Return 0 1.05
R-squared 0 92.08
Std. Deviation 0 14.3
Alpha 0 -2.9
Beta 0 1.01
Sharpe Ratio 0 0.83
Treynor Ratio 0 11.41

The iShares Core MSCI Total International Stock ETF (IXUS) has a Sharpe Ratio of 0 with a Beta of 0 and a Treynor Ratio of 0. Its Alpha is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Mean Return of 0 and a R-squared of 0.

The iShares S&P 500 Value ETF (IVE) has a Standard Deviation of 14.3 with a Beta of 1.01 and a Sharpe Ratio of 0.83. Its Treynor Ratio is 11.41 while IVE’s Alpha is -2.9. Furthermore, the fund has a R-squared of 92.08 and a Mean Return of 1.05.

IXUS’s Mean Return is 1.05 points lower than that of IVE and its R-squared is 92.08 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IVE. The Alpha and Beta of IXUS are 2.90 points higher and 1.01 points lower than IVE’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. IVE - Annual Returns

Year IXUS IVE
2020 11.14% 1.24%
2019 21.85% 31.71%
2018 -14.55% -9.09%
2017 28.08% 15.19%
2016 4.66% 17.17%
2015 -4.62% -3.24%
2014 -3.96% 12.14%
2013 15.85% 31.69%
2012 0.0% 17.45%
2011 0.0% -0.63%
2010 0.0% 14.9%

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 IVE, returning 31.71% on an annual basis. The poorest year for IVE in the last ten years was 2018, with a yield of -9.09%. Most years the iShares S&P 500 Value ETF has given investors modest returns, such as in 2014, 2010, and 2017, when gains were 12.14%, 14.9%, and 15.19% respectively.

Portfolio Growth

IXUS vs. IVE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
IVE $10,000 $17,752 11.68%

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 IVE, the end total would have been $17,752. This equates to a $7,752 profit over 7 years and a compound annual growth rate (CAGR) of 11.68%.

IXUS’s CAGR is 5.60 percentage points lower than that of IVE and as a result, would have yielded $3,543 less on a $10,000 investment. Thus, IXUS performed worse than IVE by 5.60% annually.


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