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IXUS vs. IWP: What’s The Difference?

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

The expense ratio of IXUS is 0.15 percentage points lower than IWP’s (0.09% vs. 0.24%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than IWP over the past ten years.

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

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Summary

IXUSIWP
NameiShares Core MSCI Total International Stock ETFiShares Russell Mid-Cap Growth ETF
CategoryForeign Large BlendMid-Cap Growth
IssueriSharesiShares
AUM29.54B15.7B
Avg. Return6.09%16.75%
Div. Yield2.13%0.26%
Expense Ratio0.09%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 Mid-Cap Growth ETF (IWP) is a Mid-Cap Growth fund that is issued by iShares. It currently has 15.7B total assets under management and has yielded an average annual return of 16.75% over the past 10 years. The fund has a dividend yield of 0.26% with an expense ratio of 0.24%.

IXUS’s dividend yield is 1.87% higher than that of IWP (2.13% vs. 0.26%). Also, IXUS yielded on average 10.66% less per year over the past decade (6.09% vs. 16.75%). The expense ratio of IXUS is 0.15 percentage points lower than IWP’s (0.09% vs. 0.24%).

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Fund Composition

Industry Exposure

IXUS vs. IWP - Industry Exposure

IXUSIWP
Technology13.24%33.88%
Industrials12.78%14.09%
Energy4.39%1.51%
Communication Services7.09%6.32%
Utilities2.95%0.16%
Healthcare9.29%16.79%
Consumer Defensive8.19%2.32%
Real Estate3.66%2.46%
Financial Services17.34%4.52%
Consumer Cyclical12.57%16.09%
Basic Materials8.5%1.86%

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 Mid-Cap Growth ETF (IWP) has the most exposure to the Technology sector at 33.88%. This is followed by Healthcare and Consumer Cyclical at 16.79% and 16.09% respectively. Energy (1.51%), Basic Materials (1.86%), and Consumer Defensive (2.32%) only make up 5.69% of the fund’s total assets.

IWP’s mid-section with moderate exposure is comprised of Real Estate, Financial Services, Communication Services, Industrials, and Consumer Cyclical stocks at 2.46%, 4.52%, 6.32%, 14.09%, and 16.09%.

IXUS is 12.82% more exposed to the Financial Services sector than IWP (17.34% vs 4.52%). IXUS’s exposure to Technology and Industrials stocks is 20.64% lower and 1.31% lower respectively (13.24% vs. 33.88% and 12.78% vs. 14.09%). In total, Real Estate, Energy, and Communication Services also make up 4.85% more of the fund’s holdings compared to IWP (15.14% vs. 10.29%).

Holdings

IXUS - Holdings

IXUS HoldingsWeight
Taiwan Semiconductor Manufacturing Co Ltd1.64%
Tencent Holdings Ltd1.35%
Alibaba Group Holding Ltd Ordinary Shares1.34%
Nestle SA1.1%
Samsung Electronics Co Ltd1.06%
ASML Holding NV0.9%
Roche Holding AG0.81%
LVMH Moet Hennessy Louis Vuitton SE0.67%
Novartis AG0.62%
Toyota Motor Corp0.59%

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%.

IWP - Holdings

IWP HoldingsWeight
IDEXX Laboratories Inc1.3%
DocuSign Inc1.3%
Roku Inc Class A1.29%
Match Group Inc1.06%
Chipotle Mexican Grill Inc1.06%
Pinterest Inc1.05%
Veeva Systems Inc Class A1.04%
Palantir Technologies Inc Ordinary Shares – Class A1.04%
Lululemon Athletica Inc1.01%
DexCom Inc1.0%

IWP’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Roku Inc Class A, Match Group Inc, and Chipotle Mexican Grill Inc at 1.3%, 1.3%, 1.29%, 1.06%, and 1.06%.

Pinterest Inc (1.05%), Veeva Systems Inc Class A (1.04%), and Palantir Technologies Inc Ordinary Shares – Class A (1.04%) have a slightly smaller but still significant weight. Lululemon Athletica Inc and DexCom Inc are also represented in the IWP’s holdings at 1.01% and 1.0%.

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Risk Analysis

IXUSIWP
Mean Return01.27
R-squared087.01
Std. Deviation016.05
Alpha0-1.03
Beta01.1
Sharpe Ratio00.91
Treynor Ratio012.98

The iShares Core MSCI Total International Stock ETF (IXUS) has a Beta of 0 with a Sharpe Ratio of 0 and a Alpha 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 R-squared of 0.

The iShares Russell Mid-Cap Growth ETF (IWP) has a Mean Return of 1.27 with a Beta of 1.1 and a Standard Deviation of 16.05. Its R-squared is 87.01 while IWP’s Sharpe Ratio is 0.91. Furthermore, the fund has a Alpha of -1.03 and a Treynor Ratio of 12.98.

IXUS’s Mean Return is 1.27 points lower than that of IWP and its R-squared is 87.01 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IWP. The Alpha and Beta of IXUS are 1.03 points higher and 1.10 points lower than IWP’s Alpha and Beta.

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Performance

Annual Returns

IXUS vs. IWP - Annual Returns

YearIXUSIWP
202011.14%35.29%
201921.85%35.14%
2018-14.55%-4.95%
201728.08%24.98%
20164.66%7.15%
2015-4.62%-0.39%
2014-3.96%11.68%
201315.85%35.44%
20120.0%15.62%
20110.0%-1.82%
20100.0%26.1%

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 IWP, returning 35.44% on an annual basis. The poorest year for IWP in the last ten years was 2018, with a yield of -4.95%. Most years the iShares Russell Mid-Cap Growth ETF has given investors modest returns, such as in 2014, 2012, and 2017, when gains were 11.68%, 15.62%, and 24.98% respectively.

Portfolio Growth

IXUS vs. IWP - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IXUS$10,000$14,2096.09%
IWP$10,000$25,88816.75%

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 IWP, the end total would have been $25,888. This equates to a $15,888 profit over 7 years and a compound annual growth rate (CAGR) of 16.75%.

IXUS’s CAGR is 10.66 percentage points lower than that of IWP and as a result, would have yielded $11,679 less on a $10,000 investment. Thus, IXUS performed worse than IWP by 10.66% annually.


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