The iShares Core MSCI Total International Stock ETF (IXUS) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and RSP is a Invesco Large Blend fund. So, what’s the difference between IXUS and RSP? And which fund is better?
The expense ratio of IXUS is 0.11 percentage points lower than RSP’s (0.09% vs. 0.2%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than RSP over the past ten years.
In this article, we’ll compare IXUS vs. RSP. We’ll look at risk metrics and industry exposure, as well as at their performance and fund composition. Moreover, I’ll also discuss IXUS’s and RSP’s annual returns, holdings, and portfolio growth and examine how these affect their overall returns.
|Name||iShares Core MSCI Total International Stock ETF||Invesco S&P 500 Equal Weight ETF|
|Category||Foreign Large Blend||Large Blend|
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 Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
IXUS’s dividend yield is 0.82% higher than that of RSP (2.13% vs. 1.31%). Also, IXUS yielded on average 7.70% less per year over the past decade (6.09% vs. 13.79%). The expense ratio of IXUS is 0.11 percentage points lower than RSP’s (0.09% vs. 0.2%).
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 Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.
RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.
IXUS is 3.91% more exposed to the Financial Services sector than RSP (17.34% vs 13.43%). IXUS’s exposure to Technology and Industrials stocks is 1.49% lower and 1.84% lower respectively (13.24% vs. 14.73% and 12.78% vs. 14.62%). In total, Real Estate, Energy, and Communication Services also make up 1.09% more of the fund’s holdings compared to RSP (15.14% vs. 14.05%).
|Taiwan Semiconductor Manufacturing Co Ltd||1.64%|
|Tencent Holdings Ltd||1.35%|
|Alibaba Group Holding Ltd Ordinary Shares||1.34%|
|Samsung Electronics Co Ltd||1.06%|
|ASML Holding NV||0.9%|
|Roche Holding AG||0.81%|
|LVMH Moet Hennessy Louis Vuitton SE||0.67%|
|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%.
|Chipotle Mexican Grill Inc||0.27%|
|Nike Inc Class B||0.25%|
|Monolithic Power Systems Inc||0.25%|
|Enphase Energy Inc||0.25%|
|Advanced Micro Devices Inc||0.25%|
|IDEXX Laboratories Inc||0.24%|
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Alpha of 0 with a Mean Return of 0 and a Sharpe Ratio of 0. Its Treynor Ratio is 0 while IXUS’s R-squared is 0. Furthermore, the fund has a Beta of 0 and a Standard Deviation of 0.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Mean Return of 1.19 with a Treynor Ratio of 12.12 and a Beta of 1.1. Its Alpha is -2.45 while RSP’s R-squared is 94.47. Furthermore, the fund has a Standard Deviation of 15.36 and a Sharpe Ratio of 0.89.
IXUS’s Mean Return is 1.19 points lower than that of RSP and its R-squared is 94.47 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than RSP. The Alpha and Beta of IXUS are 2.45 points higher and 1.10 points lower than RSP’s Alpha and Beta.
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 RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
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 RSP, the end total would have been $20,185. This equates to a $10,185 profit over 7 years and a compound annual growth rate (CAGR) of 13.79%.
IXUS’s CAGR is 7.70 percentage points lower than that of RSP and as a result, would have yielded $5,976 less on a $10,000 investment. Thus, IXUS performed worse than RSP by 7.70% annually.
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