The iShares Core MSCI Total International Stock ETF (IXUS) and the Schwab U.S. Dividend Equity ETF (SCHD) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and SCHD is a Schwab ETFs Large Value fund. So, what’s the difference between IXUS and SCHD? And which fund is better?
The expense ratio of IXUS is 0.03 percentage points higher than SCHD’s (0.09% vs. 0.06%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than SCHD over the past ten years.
In this article, we’ll compare IXUS vs. SCHD. We’ll look at holdings and industry exposure, as well as at their performance and annual returns. Moreover, I’ll also discuss IXUS’s and SCHD’s fund composition, portfolio growth, and risk metrics and examine how these affect their overall returns.
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Summary
| IXUS | SCHD | |
| Name | iShares Core MSCI Total International Stock ETF | Schwab U.S. Dividend Equity ETF |
| Category | Foreign Large Blend | Large Value |
| Issuer | iShares | Schwab ETFs |
| AUM | 29.54B | 26B |
| Avg. Return | 6.09% | 14.80% |
| Div. Yield | 2.13% | 2.89% |
| Expense Ratio | 0.09% | 0.06% |
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. Dividend Equity ETF (SCHD) is a Large Value fund that is issued by Schwab ETFs. It currently has 26B total assets under management and has yielded an average annual return of 14.80% over the past 10 years. The fund has a dividend yield of 2.89% with an expense ratio of 0.06%.
IXUS’s dividend yield is 0.76% lower than that of SCHD (2.13% vs. 2.89%). Also, IXUS yielded on average 8.72% less per year over the past decade (6.09% vs. 14.80%). The expense ratio of IXUS is 0.03 percentage points higher than SCHD’s (0.09% vs. 0.06%).
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Fund Composition
Industry Exposure
| IXUS | SCHD | |
| Technology | 13.24% | 16.26% |
| Industrials | 12.78% | 18.05% |
| Energy | 4.39% | 1.87% |
| Communication Services | 7.09% | 4.96% |
| Utilities | 2.95% | 0.0% |
| Healthcare | 9.29% | 12.64% |
| Consumer Defensive | 8.19% | 14.04% |
| Real Estate | 3.66% | 0.0% |
| Financial Services | 17.34% | 21.69% |
| Consumer Cyclical | 12.57% | 8.36% |
| Basic Materials | 8.5% | 2.13% |
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. Dividend Equity ETF (SCHD) has the most exposure to the Financial Services sector at 21.69%. This is followed by Industrials and Technology at 18.05% and 16.26% respectively. Utilities (0.0%), Energy (1.87%), and Basic Materials (2.13%) only make up 4.00% of the fund’s total assets.
SCHD’s mid-section with moderate exposure is comprised of Communication Services, Consumer Cyclical, Healthcare, Consumer Defensive, and Technology stocks at 4.96%, 8.36%, 12.64%, 14.04%, and 16.26%.
IXUS is 4.35% less exposed to the Financial Services sector than SCHD (17.34% vs 21.69%). IXUS’s exposure to Technology and Industrials stocks is 3.02% lower and 5.27% lower respectively (13.24% vs. 16.26% and 12.78% vs. 18.05%). In total, Real Estate, Energy, and Communication Services also make up 8.31% more of the fund’s holdings compared to SCHD (15.14% vs. 6.83%).
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%.
| SCHD Holdings | Weight |
| Merck & Co Inc | 4.24% |
| The Home Depot Inc | 4.19% |
| Texas Instruments Inc | 4.16% |
| Broadcom Inc | 4.15% |
| Amgen Inc | 4.11% |
| PepsiCo Inc | 4.09% |
| BlackRock Inc | 4.05% |
| Pfizer Inc | 3.97% |
| Verizon Communications Inc | 3.96% |
| Cisco Systems Inc | 3.96% |
SCHD’s Top Holdings are Merck & Co Inc, The Home Depot Inc, Texas Instruments Inc, Broadcom Inc, and Amgen Inc at 4.24%, 4.19%, 4.16%, 4.15%, and 4.11%.
PepsiCo Inc (4.09%), BlackRock Inc (4.05%), and Pfizer Inc (3.97%) have a slightly smaller but still significant weight. Verizon Communications Inc and Cisco Systems Inc are also represented in the SCHD’s holdings at 3.96% and 3.96%.
Risk Analysis
| IXUS | SCHD | |
| 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 R-squared of 0 with a Mean Return of 0 and a Alpha of 0. Its Standard Deviation is 0 while IXUS’s Sharpe Ratio is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Beta of 0.
The Schwab U.S. Dividend Equity ETF (SCHD) has a Mean Return of 0 with a R-squared of 0 and a Sharpe Ratio of 0. Its Beta is 0 while SCHD’s Alpha is 0. Furthermore, the fund has a Treynor Ratio of 0 and a Standard Deviation of 0.
IXUS’s Mean Return is 0.00 points lower than that of SCHD and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than SCHD. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than SCHD’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | SCHD |
| 2020 | 11.14% | 15.11% |
| 2019 | 21.85% | 27.28% |
| 2018 | -14.55% | -5.46% |
| 2017 | 28.08% | 20.88% |
| 2016 | 4.66% | 16.25% |
| 2015 | -4.62% | -0.21% |
| 2014 | -3.96% | 11.66% |
| 2013 | 15.85% | 32.9% |
| 2012 | 0.0% | 11.4% |
| 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 2013 was the strongest year for SCHD, returning 32.9% on an annual basis. The poorest year for SCHD in the last ten years was 2018, with a yield of -5.46%. Most years the Schwab U.S. Dividend Equity ETF has given investors modest returns, such as in 2012, 2014, and 2020, when gains were 11.4%, 11.66%, and 15.11% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,209 | 6.09% |
| SCHD | $10,000 | $21,688 | 14.80% |
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 SCHD, the end total would have been $21,688. This equates to a $11,688 profit over 7 years and a compound annual growth rate (CAGR) of 14.80%.
IXUS’s CAGR is 8.72 percentage points lower than that of SCHD and as a result, would have yielded $7,479 less on a $10,000 investment. Thus, IXUS performed worse than SCHD by 8.72% annually.
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