IXUS vs. IWB: What’s The Difference?

The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares Russell 1000 ETF (IWB) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and IWB is a iShares Large Blend fund. So, what’s the difference between IXUS and IWB? And which fund is better?

The expense ratio of IXUS is 0.06 percentage points lower than IWB’s (0.09% vs. 0.15%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than IWB over the past ten years.

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

Summary

IXUS IWB
Name iShares Core MSCI Total International Stock ETF iShares Russell 1000 ETF
Category Foreign Large Blend Large Blend
Issuer iShares iShares
AUM 29.54B 30.54B
Avg. Return 6.09% 14.64%
Div. Yield 2.13% 1.14%
Expense Ratio 0.09% 0.15%

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 Russell 1000 ETF (IWB) is a Large Blend fund that is issued by iShares. It currently has 30.54B total assets under management and has yielded an average annual return of 14.64% over the past 10 years. The fund has a dividend yield of 1.14% with an expense ratio of 0.15%.

IXUS’s dividend yield is 0.99% higher than that of IWB (2.13% vs. 1.14%). Also, IXUS yielded on average 8.55% less per year over the past decade (6.09% vs. 14.64%). The expense ratio of IXUS is 0.06 percentage points lower than IWB’s (0.09% vs. 0.15%).

Fund Composition

Industry Exposure

IXUS vs. IWB - Industry Exposure

IXUS IWB
Technology 13.24% 25.33%
Industrials 12.78% 8.88%
Energy 4.39% 2.44%
Communication Services 7.09% 10.83%
Utilities 2.95% 2.36%
Healthcare 9.29% 13.35%
Consumer Defensive 8.19% 5.97%
Real Estate 3.66% 3.34%
Financial Services 17.34% 13.64%
Consumer Cyclical 12.57% 11.85%
Basic Materials 8.5% 2.02%

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 Russell 1000 ETF (IWB) has the most exposure to the Technology sector at 25.33%. This is followed by Financial Services and Healthcare at 13.64% and 13.35% respectively. Utilities (2.36%), Energy (2.44%), and Real Estate (3.34%) only make up 8.14% of the fund’s total assets.

IWB’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.88%, 10.83%, 11.85%, and 13.35%.

IXUS is 3.70% more exposed to the Financial Services sector than IWB (17.34% vs 13.64%). IXUS’s exposure to Technology and Industrials stocks is 12.09% lower and 3.90% higher respectively (13.24% vs. 25.33% and 12.78% vs. 8.88%). In total, Real Estate, Energy, and Communication Services also make up 1.47% less of the fund’s holdings compared to IWB (15.14% vs. 16.61%).

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%.

IWB - Holdings

IWB Holdings Weight
Apple Inc 5.45%
Microsoft Corp 5.11%
Amazon.com Inc 3.43%
Facebook Inc Class A 2.03%
Alphabet Inc Class A 1.93%
Alphabet Inc Class C 1.82%
Tesla Inc 1.27%
Berkshire Hathaway Inc Class B 1.24%
NVIDIA Corp 1.11%
JPMorgan Chase & Co 1.09%

IWB’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.45%, 5.11%, 3.43%, 2.03%, and 1.93%.

Alphabet Inc Class C (1.82%), Tesla Inc (1.27%), and Berkshire Hathaway Inc Class B (1.24%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IWB’s holdings at 1.11% and 1.09%.

Risk Analysis

IXUS IWB
Mean Return 0 1.27
R-squared 0 99.73
Std. Deviation 0 13.87
Alpha 0 -0.38
Beta 0 1.02
Sharpe Ratio 0 1.05
Treynor Ratio 0 14.31

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

The iShares Russell 1000 ETF (IWB) has a Treynor Ratio of 14.31 with a Beta of 1.02 and a Mean Return of 1.27. Its Standard Deviation is 13.87 while IWB’s Sharpe Ratio is 1.05. Furthermore, the fund has a R-squared of 99.73 and a Alpha of -0.38.

IXUS’s Mean Return is 1.27 points lower than that of IWB and its R-squared is 99.73 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IWB. The Alpha and Beta of IXUS are 0.38 points higher and 1.02 points lower than IWB’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. IWB - Annual Returns

Year IXUS IWB
2020 11.14% 20.8%
2019 21.85% 31.26%
2018 -14.55% -4.91%
2017 28.08% 21.53%
2016 4.66% 11.91%
2015 -4.62% 0.82%
2014 -3.96% 13.08%
2013 15.85% 32.93%
2012 0.0% 16.27%
2011 0.0% 1.36%
2010 0.0% 15.94%

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 IWB, returning 32.93% on an annual basis. The poorest year for IWB in the last ten years was 2018, with a yield of -4.91%. Most years the iShares Russell 1000 ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.08%, 15.94%, and 16.27% respectively.

Portfolio Growth

IXUS vs. IWB - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
IWB $10,000 $23,378 14.64%

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 IWB, the end total would have been $23,378. This equates to a $13,378 profit over 7 years and a compound annual growth rate (CAGR) of 14.64%.

IXUS’s CAGR is 8.55 percentage points lower than that of IWB and as a result, would have yielded $9,169 less on a $10,000 investment. Thus, IXUS performed worse than IWB by 8.55% annually.


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