The iShares Core MSCI Total International Stock ETF (IXUS) and the Schwab U.S. Small-Cap ETF (SCHA) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and SCHA is a Schwab ETFs Small Blend fund. So, what’s the difference between IXUS and SCHA? And which fund is better?
The expense ratio of IXUS is 0.05 percentage points higher than SCHA’s (0.09% vs. 0.04%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than SCHA over the past ten years.
In this article, we’ll compare IXUS vs. SCHA. We’ll look at annual returns and holdings, as well as at their portfolio growth and fund composition. Moreover, I’ll also discuss IXUS’s and SCHA’s risk metrics, industry exposure, and performance and examine how these affect their overall returns.
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Summary
| IXUS | SCHA | |
| Name | iShares Core MSCI Total International Stock ETF | Schwab U.S. Small-Cap ETF |
| Category | Foreign Large Blend | Small Blend |
| Issuer | iShares | Schwab ETFs |
| AUM | 29.54B | 16.51B |
| Avg. Return | 6.09% | 12.62% |
| Div. Yield | 2.13% | 0.98% |
| Expense Ratio | 0.09% | 0.04% |
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 Schwab U.S. Small-Cap ETF (SCHA) is a Small Blend fund that is issued by Schwab ETFs. It currently has 16.51B total assets under management and has yielded an average annual return of 12.62% over the past 10 years. The fund has a dividend yield of 0.98% with an expense ratio of 0.04%.
IXUS’s dividend yield is 1.15% higher than that of SCHA (2.13% vs. 0.98%). Also, IXUS yielded on average 6.54% less per year over the past decade (6.09% vs. 12.62%). The expense ratio of IXUS is 0.05 percentage points higher than SCHA’s (0.09% vs. 0.04%).
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Fund Composition
Industry Exposure
| IXUS | SCHA | |
| Technology | 13.24% | 14.91% |
| Industrials | 12.78% | 15.37% |
| Energy | 4.39% | 3.35% |
| Communication Services | 7.09% | 3.5% |
| Utilities | 2.95% | 1.83% |
| Healthcare | 9.29% | 16.5% |
| Consumer Defensive | 8.19% | 3.75% |
| Real Estate | 3.66% | 7.83% |
| Financial Services | 17.34% | 14.49% |
| Consumer Cyclical | 12.57% | 14.48% |
| Basic Materials | 8.5% | 3.98% |
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 Schwab U.S. Small-Cap ETF (SCHA) has the most exposure to the Healthcare sector at 16.5%. This is followed by Industrials and Technology at 15.37% and 14.91% respectively. Energy (3.35%), Communication Services (3.5%), and Consumer Defensive (3.75%) only make up 10.60% of the fund’s total assets.
SCHA’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Consumer Cyclical, Financial Services, and Technology stocks at 3.98%, 7.83%, 14.48%, 14.49%, and 14.91%.
IXUS is 2.85% more exposed to the Financial Services sector than SCHA (17.34% vs 14.49%). IXUS’s exposure to Technology and Industrials stocks is 1.67% lower and 2.59% lower respectively (13.24% vs. 14.91% and 12.78% vs. 15.37%). In total, Real Estate, Energy, and Communication Services also make up 0.46% more of the fund’s holdings compared to SCHA (15.14% vs. 14.68%).
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%.
| SCHA Holdings | Weight |
| AMC Entertainment Holdings Inc Class A | 0.67% |
| Caesars Entertainment Inc | 0.51% |
| Cloudflare Inc | 0.48% |
| NovoCure Ltd | 0.45% |
| Plug Power Inc | 0.41% |
| 10x Genomics Inc Ordinary Shares – Class A | 0.34% |
| GameStop Corp Class A | 0.28% |
| RH | 0.27% |
| Penn National Gaming Inc | 0.27% |
| Axon Enterprise Inc | 0.27% |
SCHA’s Top Holdings are AMC Entertainment Holdings Inc Class A, Caesars Entertainment Inc, Cloudflare Inc, NovoCure Ltd, and Plug Power Inc at 0.67%, 0.51%, 0.48%, 0.45%, and 0.41%.
10x Genomics Inc Ordinary Shares – Class A (0.34%), GameStop Corp Class A (0.28%), and RH (0.27%) have a slightly smaller but still significant weight. Penn National Gaming Inc and Axon Enterprise Inc are also represented in the SCHA’s holdings at 0.27% and 0.27%.
Risk Analysis
| IXUS | SCHA | |
| Mean Return | 0 | 1.14 |
| R-squared | 0 | 82.26 |
| Std. Deviation | 0 | 18.68 |
| Alpha | 0 | -4.65 |
| Beta | 0 | 1.25 |
| Sharpe Ratio | 0 | 0.7 |
| Treynor Ratio | 0 | 9.62 |
The iShares Core MSCI Total International Stock ETF (IXUS) has a Alpha of 0 with a Sharpe Ratio of 0 and a R-squared of 0. Its Mean Return is 0 while IXUS’s Beta is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Standard Deviation of 0.
The Schwab U.S. Small-Cap ETF (SCHA) has a Standard Deviation of 18.68 with a R-squared of 82.26 and a Alpha of -4.65. Its Beta is 1.25 while SCHA’s Mean Return is 1.14. Furthermore, the fund has a Sharpe Ratio of 0.7 and a Treynor Ratio of 9.62.
IXUS’s Mean Return is 1.14 points lower than that of SCHA and its R-squared is 82.26 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than SCHA. The Alpha and Beta of IXUS are 4.65 points higher and 1.25 points lower than SCHA’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | SCHA |
| 2020 | 11.14% | 19.35% |
| 2019 | 21.85% | 26.54% |
| 2018 | -14.55% | -11.75% |
| 2017 | 28.08% | 15.04% |
| 2016 | 4.66% | 19.88% |
| 2015 | -4.62% | -4.24% |
| 2014 | -3.96% | 6.53% |
| 2013 | 15.85% | 39.59% |
| 2012 | 0.0% | 18.24% |
| 2011 | 0.0% | -2.95% |
| 2010 | 0.0% | 28.31% |
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 SCHA, returning 39.59% on an annual basis. The poorest year for SCHA in the last ten years was 2018, with a yield of -11.75%. Most years the Schwab U.S. Small-Cap ETF has given investors modest returns, such as in 2017, 2012, and 2020, when gains were 15.04%, 18.24%, and 19.35% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,209 | 6.09% |
| SCHA | $10,000 | $18,750 | 12.62% |
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 SCHA, the end total would have been $18,750. This equates to a $8,750 profit over 7 years and a compound annual growth rate (CAGR) of 12.62%.
IXUS’s CAGR is 6.54 percentage points lower than that of SCHA and as a result, would have yielded $4,541 less on a $10,000 investment. Thus, IXUS performed worse than SCHA by 6.54% annually.
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