IXUS vs. IWR: What’s The Difference?

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

The expense ratio of IXUS is 0.10 percentage points lower than IWR’s (0.09% vs. 0.19%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than IWR over the past ten years.

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

Summary

IXUS IWR
Name iShares Core MSCI Total International Stock ETF iShares Russell Mid-Cap ETF
Category Foreign Large Blend Mid-Cap Blend
Issuer iShares iShares
AUM 29.54B 29.84B
Avg. Return 6.09% 14.15%
Div. Yield 2.13% 0.99%
Expense Ratio 0.09% 0.19%

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 ETF (IWR) is a Mid-Cap Blend fund that is issued by iShares. It currently has 29.84B total assets under management and has yielded an average annual return of 14.15% over the past 10 years. The fund has a dividend yield of 0.99% with an expense ratio of 0.19%.

IXUS’s dividend yield is 1.14% higher than that of IWR (2.13% vs. 0.99%). Also, IXUS yielded on average 8.07% less per year over the past decade (6.09% vs. 14.15%). The expense ratio of IXUS is 0.10 percentage points lower than IWR’s (0.09% vs. 0.19%).

Fund Composition

Industry Exposure

IXUS vs. IWR - Industry Exposure

IXUS IWR
Technology 13.24% 19.67%
Industrials 12.78% 14.54%
Energy 4.39% 3.48%
Communication Services 7.09% 4.64%
Utilities 2.95% 4.46%
Healthcare 9.29% 11.76%
Consumer Defensive 8.19% 3.82%
Real Estate 3.66% 8.31%
Financial Services 17.34% 11.64%
Consumer Cyclical 12.57% 13.59%
Basic Materials 8.5% 4.1%

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 ETF (IWR) has the most exposure to the Technology sector at 19.67%. This is followed by Industrials and Consumer Cyclical at 14.54% and 13.59% respectively. Consumer Defensive (3.82%), Basic Materials (4.1%), and Utilities (4.46%) only make up 12.38% of the fund’s total assets.

IWR’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Financial Services, Healthcare, and Consumer Cyclical stocks at 4.64%, 8.31%, 11.64%, 11.76%, and 13.59%.

IXUS is 5.70% more exposed to the Financial Services sector than IWR (17.34% vs 11.64%). IXUS’s exposure to Technology and Industrials stocks is 6.43% lower and 1.76% lower respectively (13.24% vs. 19.67% and 12.78% vs. 14.54%). In total, Real Estate, Energy, and Communication Services also make up 1.29% less of the fund’s holdings compared to IWR (15.14% vs. 16.43%).

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%.

IWR - Holdings

IWR Holdings Weight
IDEXX Laboratories Inc 0.51%
DocuSign Inc 0.51%
Twitter Inc 0.48%
Chipotle Mexican Grill Inc 0.47%
Roku Inc Class A 0.44%
Marvell Technology Inc 0.44%
DexCom Inc 0.44%
Trane Technologies PLC 0.43%
MSCI Inc 0.43%
Carrier Global Corp Ordinary Shares 0.43%

IWR’s Top Holdings are IDEXX Laboratories Inc, DocuSign Inc, Twitter Inc, Chipotle Mexican Grill Inc, and Roku Inc Class A at 0.51%, 0.51%, 0.48%, 0.47%, and 0.44%.

Marvell Technology Inc (0.44%), DexCom Inc (0.44%), and Trane Technologies PLC (0.43%) have a slightly smaller but still significant weight. MSCI Inc and Carrier Global Corp Ordinary Shares are also represented in the IWR’s holdings at 0.43% and 0.43%.

Risk Analysis

IXUS IWR
Mean Return 0 1.17
R-squared 0 91.52
Std. Deviation 0 15.66
Alpha 0 -2.8
Beta 0 1.11
Sharpe Ratio 0 0.86
Treynor Ratio 0 11.72

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

The iShares Russell Mid-Cap ETF (IWR) has a Alpha of -2.8 with a Sharpe Ratio of 0.86 and a Treynor Ratio of 11.72. Its Beta is 1.11 while IWR’s R-squared is 91.52. Furthermore, the fund has a Mean Return of 1.17 and a Standard Deviation of 15.66.

IXUS’s Mean Return is 1.17 points lower than that of IWR and its R-squared is 91.52 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than IWR. The Alpha and Beta of IXUS are 2.80 points higher and 1.11 points lower than IWR’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. IWR - Annual Returns

Year IXUS IWR
2020 11.14% 16.91%
2019 21.85% 30.31%
2018 -14.55% -9.13%
2017 28.08% 18.32%
2016 4.66% 13.58%
2015 -4.62% -2.57%
2014 -3.96% 13.03%
2013 15.85% 34.5%
2012 0.0% 17.13%
2011 0.0% -1.67%
2010 0.0% 25.25%

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 IWR, returning 34.5% on an annual basis. The poorest year for IWR in the last ten years was 2018, with a yield of -9.13%. Most years the iShares Russell Mid-Cap ETF has given investors modest returns, such as in 2016, 2020, and 2012, when gains were 13.58%, 16.91%, and 17.13% respectively.

Portfolio Growth

IXUS vs. IWR - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
IWR $10,000 $20,487 14.15%

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 IWR, the end total would have been $20,487. This equates to a $10,487 profit over 7 years and a compound annual growth rate (CAGR) of 14.15%.

IXUS’s CAGR is 8.07 percentage points lower than that of IWR and as a result, would have yielded $6,278 less on a $10,000 investment. Thus, IXUS performed worse than IWR by 8.07% annually.


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