IXUS vs. MTUM: What’s The Difference?

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

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

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

Summary

IXUS MTUM
Name iShares Core MSCI Total International Stock ETF iShares MSCI USA Momentum Factor ETF
Category Foreign Large Blend Large Growth
Issuer iShares iShares
AUM 29.54B 14.53B
Avg. Return 6.09% 17.37%
Div. Yield 2.13% 0.44%
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 MSCI USA Momentum Factor ETF (MTUM) is a Large Growth fund that is issued by iShares. It currently has 14.53B total assets under management and has yielded an average annual return of 17.37% over the past 10 years. The fund has a dividend yield of 0.44% with an expense ratio of 0.15%.

IXUS’s dividend yield is 1.69% higher than that of MTUM (2.13% vs. 0.44%). Also, IXUS yielded on average 11.28% less per year over the past decade (6.09% vs. 17.37%). The expense ratio of IXUS is 0.06 percentage points lower than MTUM’s (0.09% vs. 0.15%).

Fund Composition

Industry Exposure

IXUS vs. MTUM - Industry Exposure

IXUS MTUM
Technology 13.24% 15.24%
Industrials 12.78% 12.47%
Energy 4.39% 1.77%
Communication Services 7.09% 13.18%
Utilities 2.95% 0.19%
Healthcare 9.29% 6.41%
Consumer Defensive 8.19% 2.88%
Real Estate 3.66% 0.43%
Financial Services 17.34% 34.32%
Consumer Cyclical 12.57% 9.96%
Basic Materials 8.5% 3.15%

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 MSCI USA Momentum Factor ETF (MTUM) has the most exposure to the Financial Services sector at 34.32%. This is followed by Technology and Communication Services at 15.24% and 13.18% respectively. Real Estate (0.43%), Energy (1.77%), and Consumer Defensive (2.88%) only make up 5.08% of the fund’s total assets.

MTUM’s mid-section with moderate exposure is comprised of Basic Materials, Healthcare, Consumer Cyclical, Industrials, and Communication Services stocks at 3.15%, 6.41%, 9.96%, 12.47%, and 13.18%.

IXUS is 16.98% less exposed to the Financial Services sector than MTUM (17.34% vs 34.32%). IXUS’s exposure to Technology and Industrials stocks is 2.00% lower and 0.31% higher respectively (13.24% vs. 15.24% and 12.78% vs. 12.47%). In total, Real Estate, Energy, and Communication Services also make up 0.24% less of the fund’s holdings compared to MTUM (15.14% vs. 15.38%).

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%.

MTUM - Holdings

MTUM Holdings Weight
Tesla Inc 5.63%
The Walt Disney Co 4.39%
JPMorgan Chase & Co 4.35%
Berkshire Hathaway Inc Class B 4.34%
Bank of America Corp 3.81%
PayPal Holdings Inc 3.76%
Wells Fargo & Co 3.05%
Applied Materials Inc 3.05%
Moderna Inc 2.89%
Alphabet Inc Class C 2.84%

MTUM’s Top Holdings are Tesla Inc, The Walt Disney Co, JPMorgan Chase & Co, Berkshire Hathaway Inc Class B, and Bank of America Corp at 5.63%, 4.39%, 4.35%, 4.34%, and 3.81%.

PayPal Holdings Inc (3.76%), Wells Fargo & Co (3.05%), and Applied Materials Inc (3.05%) have a slightly smaller but still significant weight. Moderna Inc and Alphabet Inc Class C are also represented in the MTUM’s holdings at 2.89% and 2.84%.

Risk Analysis

IXUS MTUM
Mean Return 0 0
R-squared 0 0
Std. Deviation 0 0
Alpha 0 0
Beta 0 0
Sharpe Ratio 0 0
Treynor Ratio 0 0

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

The iShares MSCI USA Momentum Factor ETF (MTUM) has a Treynor Ratio of 0 with a Mean Return of 0 and a Sharpe Ratio of 0. Its Beta is 0 while MTUM’s Standard Deviation is 0. Furthermore, the fund has a R-squared of 0 and a Alpha of 0.

IXUS’s Mean Return is 0.00 points lower than that of MTUM and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than MTUM. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than MTUM’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. MTUM - Annual Returns

Year IXUS MTUM
2020 11.14% 29.69%
2019 21.85% 27.57%
2018 -14.55% -1.77%
2017 28.08% 37.6%
2016 4.66% 4.89%
2015 -4.62% 9.12%
2014 -3.96% 14.48%
2013 15.85% 0.0%
2012 0.0% 0.0%
2011 0.0% 0.0%
2010 0.0% 0.0%

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 2017 was the strongest year for MTUM, returning 37.6% on an annual basis. The poorest year for MTUM in the last ten years was 2018, with a yield of -1.77%. Most years the iShares MSCI USA Momentum Factor ETF has given investors modest returns, such as in 2010, 2016, and 2015, when gains were 0.0%, 4.89%, and 9.12% respectively.

Portfolio Growth

IXUS vs. MTUM - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
MTUM $10,000 $29,301 17.37%

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 MTUM, the end total would have been $29,301. This equates to a $19,301 profit over 7 years and a compound annual growth rate (CAGR) of 17.37%.

IXUS’s CAGR is 11.28 percentage points lower than that of MTUM and as a result, would have yielded $15,092 less on a $10,000 investment. Thus, IXUS performed worse than MTUM by 11.28% annually.


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