The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares Russell 2000 Value ETF (IWN) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and IWN is a iShares Small Value fund. So, what’s the difference between IXUS and IWN? And which fund is better?
The expense ratio of IXUS is 0.15 percentage points lower than IWN’s (0.09% vs. 0.24%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than IWN over the past ten years.
In this article, we’ll compare IXUS vs. IWN. We’ll look at holdings and annual returns, as well as at their industry exposure and performance. Moreover, I’ll also discuss IXUS’s and IWN’s portfolio growth, fund composition, and risk metrics and examine how these affect their overall returns.
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Summary
| IXUS | IWN | |
| Name | iShares Core MSCI Total International Stock ETF | iShares Russell 2000 Value ETF |
| Category | Foreign Large Blend | Small Value |
| Issuer | iShares | iShares |
| AUM | 29.54B | 15.48B |
| Avg. Return | 6.09% | 10.96% |
| Div. Yield | 2.13% | 1.26% |
| Expense Ratio | 0.09% | 0.24% |
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 2000 Value ETF (IWN) is a Small Value fund that is issued by iShares. It currently has 15.48B total assets under management and has yielded an average annual return of 10.96% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.24%.
IXUS’s dividend yield is 0.87% higher than that of IWN (2.13% vs. 1.26%). Also, IXUS yielded on average 4.88% less per year over the past decade (6.09% vs. 10.96%). The expense ratio of IXUS is 0.15 percentage points lower than IWN’s (0.09% vs. 0.24%).
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Fund Composition
Industry Exposure
| IXUS | IWN | |
| Technology | 13.24% | 6.02% |
| Industrials | 12.78% | 14.58% |
| Energy | 4.39% | 5.84% |
| Communication Services | 7.09% | 4.17% |
| Utilities | 2.95% | 4.69% |
| Healthcare | 9.29% | 10.94% |
| Consumer Defensive | 8.19% | 3.77% |
| Real Estate | 3.66% | 14.36% |
| Financial Services | 17.34% | 22.97% |
| Consumer Cyclical | 12.57% | 8.39% |
| Basic Materials | 8.5% | 4.29% |
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 2000 Value ETF (IWN) has the most exposure to the Financial Services sector at 22.97%. This is followed by Industrials and Real Estate at 14.58% and 14.36% respectively. Communication Services (4.17%), Basic Materials (4.29%), and Utilities (4.69%) only make up 13.15% of the fund’s total assets.
IWN’s mid-section with moderate exposure is comprised of Energy, Technology, Consumer Cyclical, Healthcare, and Real Estate stocks at 5.84%, 6.02%, 8.39%, 10.94%, and 14.36%.
IXUS is 5.63% less exposed to the Financial Services sector than IWN (17.34% vs 22.97%). IXUS’s exposure to Technology and Industrials stocks is 7.22% higher and 1.80% lower respectively (13.24% vs. 6.02% and 12.78% vs. 14.58%). In total, Real Estate, Energy, and Communication Services also make up 9.23% less of the fund’s holdings compared to IWN (15.14% vs. 24.37%).
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%.
| IWN Holdings | Weight |
| AMC Entertainment Holdings Inc Class A | 1.06% |
| Tenet Healthcare Corp | 0.47% |
| Stag Industrial Inc | 0.47% |
| Ovintiv Inc | 0.45% |
| EMCOR Group Inc | 0.42% |
| Valley National Bancorp | 0.37% |
| Chesapeake Energy Corp Ordinary Shares – New | 0.37% |
| Agree Realty Corp | 0.36% |
| Macy’s Inc | 0.35% |
| Essent Group Ltd | 0.35% |
IWN’s Top Holdings are AMC Entertainment Holdings Inc Class A, Tenet Healthcare Corp, Stag Industrial Inc, Ovintiv Inc, and EMCOR Group Inc at 1.06%, 0.47%, 0.47%, 0.45%, and 0.42%.
Valley National Bancorp (0.37%), Chesapeake Energy Corp Ordinary Shares – New (0.37%), and Agree Realty Corp (0.36%) have a slightly smaller but still significant weight. Macy’s Inc and Essent Group Ltd are also represented in the IWN’s holdings at 0.35% and 0.35%.
Risk Analysis
| IXUS | IWN | |
| Mean Return | 0 | 1.01 |
| R-squared | 0 | 72.64 |
| Std. Deviation | 0 | 19.28 |
| Alpha | 0 | -6.32 |
| Beta | 0 | 1.21 |
| Sharpe Ratio | 0 | 0.59 |
| Treynor Ratio | 0 | 8.3 |
The iShares Core MSCI Total International Stock ETF (IXUS) has a Treynor Ratio of 0 with a Mean Return of 0 and a Sharpe Ratio of 0. Its Standard Deviation is 0 while IXUS’s Alpha is 0. Furthermore, the fund has a Beta of 0 and a R-squared of 0.
The iShares Russell 2000 Value ETF (IWN) has a Sharpe Ratio of 0.59 with a Standard Deviation of 19.28 and a Beta of 1.21. Its R-squared is 72.64 while IWN’s Treynor Ratio is 8.3. Furthermore, the fund has a Alpha of -6.32 and a Mean Return of 1.01.
IXUS’s Mean Return is 1.01 points lower than that of IWN and its R-squared is 72.64 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IWN. The Alpha and Beta of IXUS are 6.32 points higher and 1.21 points lower than IWN’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | IWN |
| 2020 | 11.14% | 4.5% |
| 2019 | 21.85% | 22.17% |
| 2018 | -14.55% | -12.94% |
| 2017 | 28.08% | 7.73% |
| 2016 | 4.66% | 31.64% |
| 2015 | -4.62% | -7.53% |
| 2014 | -3.96% | 4.13% |
| 2013 | 15.85% | 34.3% |
| 2012 | 0.0% | 17.92% |
| 2011 | 0.0% | -5.64% |
| 2010 | 0.0% | 24.29% |
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 IWN, returning 34.3% on an annual basis. The poorest year for IWN in the last ten years was 2018, with a yield of -12.94%. Most years the iShares Russell 2000 Value ETF has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 4.5%, 7.73%, and 17.92% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,209 | 6.09% |
| IWN | $10,000 | $15,177 | 10.96% |
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 IWN, the end total would have been $15,177. This equates to a $5,177 profit over 7 years and a compound annual growth rate (CAGR) of 10.96%.
IXUS’s CAGR is 4.88 percentage points lower than that of IWN and as a result, would have yielded $968 less on a $10,000 investment. Thus, IXUS performed worse than IWN by 4.88% annually.
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