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IXUS vs. MDY: What’s The Difference?

The iShares Core MSCI Total International Stock ETF (IXUS) and the SPDR S&P MIDCAP 400 ETF Trust (MDY) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund. So, what’s the difference between IXUS and MDY? And which fund is better?

The expense ratio of IXUS is 0.14 percentage points lower than MDY’s (0.09% vs. 0.23%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than MDY over the past ten years.

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

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Summary

IXUSMDY
NameiShares Core MSCI Total International Stock ETFSPDR S&P MIDCAP 400 ETF Trust
CategoryForeign Large BlendMid-Cap Blend
IssueriSharesSPDR State Street Global Advisors
AUM29.54B21.31B
Avg. Return6.09%13.29%
Div. Yield2.13%0.94%
Expense Ratio0.09%0.23%

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 SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.

IXUS’s dividend yield is 1.19% higher than that of MDY (2.13% vs. 0.94%). Also, IXUS yielded on average 7.20% less per year over the past decade (6.09% vs. 13.29%). The expense ratio of IXUS is 0.14 percentage points lower than MDY’s (0.09% vs. 0.23%).

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Fund Composition

Industry Exposure

IXUS vs. MDY - Industry Exposure

IXUSMDY
Technology13.24%14.74%
Industrials12.78%17.88%
Energy4.39%2.52%
Communication Services7.09%1.63%
Utilities2.95%2.84%
Healthcare9.29%11.17%
Consumer Defensive8.19%4.2%
Real Estate3.66%9.66%
Financial Services17.34%15.2%
Consumer Cyclical12.57%14.89%
Basic Materials8.5%5.27%

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 SPDR S&P MIDCAP 400 ETF Trust (MDY) has the most exposure to the Industrials sector at 17.88%. This is followed by Financial Services and Consumer Cyclical at 15.2% and 14.89% respectively. Energy (2.52%), Utilities (2.84%), and Consumer Defensive (4.2%) only make up 9.56% of the fund’s total assets.

MDY’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Consumer Cyclical stocks at 5.27%, 9.66%, 11.17%, 14.74%, and 14.89%.

IXUS is 2.14% more exposed to the Financial Services sector than MDY (17.34% vs 15.2%). IXUS’s exposure to Technology and Industrials stocks is 1.50% lower and 5.10% lower respectively (13.24% vs. 14.74% and 12.78% vs. 17.88%). In total, Real Estate, Energy, and Communication Services also make up 1.33% more of the fund’s holdings compared to MDY (15.14% vs. 13.81%).

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%.

MDY - Holdings

MDY HoldingsWeight
Bio-Techne Corp0.75%
Molina Healthcare Inc0.63%
Cognex Corp0.63%
Fair Isaac Corp0.62%
XPO Logistics Inc0.61%
SolarEdge Technologies Inc0.61%
Signature Bank0.6%
Graco Inc0.55%
Camden Property Trust0.55%
FactSet Research Systems Inc0.54%

MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.

SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.

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Risk Analysis

IXUSMDY
Mean Return01.08
R-squared086.66
Std. Deviation016.83
Alpha0-4.1
Beta01.15
Sharpe Ratio00.73
Treynor Ratio09.97

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

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Treynor Ratio of 9.97 with a Mean Return of 1.08 and a Standard Deviation of 16.83. Its Alpha is -4.1 while MDY’s Beta is 1.15. Furthermore, the fund has a R-squared of 86.66 and a Sharpe Ratio of 0.73.

IXUS’s Mean Return is 1.08 points lower than that of MDY and its R-squared is 86.66 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than MDY. The Alpha and Beta of IXUS are 4.10 points higher and 1.15 points lower than MDY’s Alpha and Beta.

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Performance

Annual Returns

IXUS vs. MDY - Annual Returns

YearIXUSMDY
202011.14%13.51%
201921.85%25.86%
2018-14.55%-11.28%
201728.08%15.89%
20164.66%20.33%
2015-4.62%-2.4%
2014-3.96%9.42%
201315.85%33.08%
20120.0%17.58%
20110.0%-1.99%
20100.0%26.17%

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 MDY, returning 33.08% on an annual basis. The poorest year for MDY in the last ten years was 2018, with a yield of -11.28%. Most years the SPDR S&P MIDCAP 400 ETF Trust has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.51%, 15.89%, and 17.58% respectively.

Portfolio Growth

IXUS vs. MDY - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IXUS$10,000$14,2096.09%
MDY$10,000$18,87513.29%

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 MDY, the end total would have been $18,875. This equates to a $8,875 profit over 7 years and a compound annual growth rate (CAGR) of 13.29%.

IXUS’s CAGR is 7.20 percentage points lower than that of MDY and as a result, would have yielded $4,666 less on a $10,000 investment. Thus, IXUS performed worse than MDY by 7.20% annually.


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