IXUS vs. SCHF: What’s The Difference?

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

The expense ratio of IXUS is 0.03 percentage points higher than SCHF’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 SCHF over the past ten years.

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

Summary

IXUS SCHF
Name iShares Core MSCI Total International Stock ETF Schwab International Equity ETF
Category Foreign Large Blend Foreign Large Blend
Issuer iShares Schwab ETFs
AUM 29.54B 26.99B
Avg. Return 6.09% 6.43%
Div. Yield 2.13% 2.16%
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 International Equity ETF (SCHF) is a Foreign Large Blend fund that is issued by Schwab ETFs. It currently has 26.99B total assets under management and has yielded an average annual return of 6.43% over the past 10 years. The fund has a dividend yield of 2.16% with an expense ratio of 0.06%.

IXUS’s dividend yield is 0.03% lower than that of SCHF (2.13% vs. 2.16%). Also, IXUS yielded on average 0.34% less per year over the past decade (6.09% vs. 6.43%). The expense ratio of IXUS is 0.03 percentage points higher than SCHF’s (0.09% vs. 0.06%).

Fund Composition

Industry Exposure

IXUS vs. SCHF - Industry Exposure

IXUS SCHF
Technology 13.24% 11.55%
Industrials 12.78% 14.86%
Energy 4.39% 4.23%
Communication Services 7.09% 5.65%
Utilities 2.95% 3.09%
Healthcare 9.29% 11.05%
Consumer Defensive 8.19% 9.41%
Real Estate 3.66% 3.17%
Financial Services 17.34% 17.85%
Consumer Cyclical 12.57% 10.87%
Basic Materials 8.5% 8.26%

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 International Equity ETF (SCHF) has the most exposure to the Financial Services sector at 17.85%. This is followed by Industrials and Technology at 14.86% and 11.55% respectively. Real Estate (3.17%), Energy (4.23%), and Communication Services (5.65%) only make up 13.05% of the fund’s total assets.

SCHF’s mid-section with moderate exposure is comprised of Basic Materials, Consumer Defensive, Consumer Cyclical, Healthcare, and Technology stocks at 8.26%, 9.41%, 10.87%, 11.05%, and 11.55%.

IXUS is 0.51% less exposed to the Financial Services sector than SCHF (17.34% vs 17.85%). IXUS’s exposure to Technology and Industrials stocks is 1.69% higher and 2.08% lower respectively (13.24% vs. 11.55% and 12.78% vs. 14.86%). In total, Real Estate, Energy, and Communication Services also make up 2.09% more of the fund’s holdings compared to SCHF (15.14% vs. 13.05%).

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%.

SCHF - Holdings

SCHF Holdings Weight
Nestle SA 1.66%
Samsung Electronics Co Ltd 1.6%
ASML Holding NV 1.29%
Roche Holding AG 1.24%
Toyota Motor Corp 1.02%
LVMH Moet Hennessy Louis Vuitton SE 0.93%
Novartis AG 0.92%
Shopify Inc A 0.78%
AstraZeneca PLC 0.75%
SAP SE 0.74%

SCHF’s Top Holdings are Nestle SA, Samsung Electronics Co Ltd, ASML Holding NV, Roche Holding AG, and Toyota Motor Corp at 1.66%, 1.6%, 1.29%, 1.24%, and 1.02%.

LVMH Moet Hennessy Louis Vuitton SE (0.93%), Novartis AG (0.92%), and Shopify Inc A (0.78%) have a slightly smaller but still significant weight. AstraZeneca PLC and SAP SE are also represented in the SCHF’s holdings at 0.75% and 0.74%.

Risk Analysis

IXUS SCHF
Mean Return 0 0.58
R-squared 0 98.16
Std. Deviation 0 15.08
Alpha 0 0.53
Beta 0 0.99
Sharpe Ratio 0 0.42
Treynor Ratio 0 5.39

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

The Schwab International Equity ETF (SCHF) has a Mean Return of 0.58 with a Treynor Ratio of 5.39 and a Sharpe Ratio of 0.42. Its Standard Deviation is 15.08 while SCHF’s R-squared is 98.16. Furthermore, the fund has a Beta of 0.99 and a Alpha of 0.53.

IXUS’s Mean Return is 0.58 points lower than that of SCHF and its R-squared is 98.16 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than SCHF. The Alpha and Beta of IXUS are 0.53 points lower and 0.99 points lower than SCHF’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. SCHF - Annual Returns

Year IXUS SCHF
2020 11.14% 9.86%
2019 21.85% 22.15%
2018 -14.55% -14.39%
2017 28.08% 25.83%
2016 4.66% 2.88%
2015 -4.62% -2.44%
2014 -3.96% -4.44%
2013 15.85% 20.03%
2012 0.0% 17.12%
2011 0.0% -12.32%
2010 0.0% 8.6%

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 SCHF, returning 25.83% on an annual basis. The poorest year for SCHF in the last ten years was 2018, with a yield of -14.39%. Most years the Schwab International Equity ETF has given investors modest returns, such as in 2016, 2010, and 2020, when gains were 2.88%, 8.6%, and 9.86% respectively.

Portfolio Growth

IXUS vs. SCHF - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
SCHF $10,000 $13,865 6.43%

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 SCHF, the end total would have been $13,865. This equates to a $3,865 profit over 7 years and a compound annual growth rate (CAGR) of 6.43%.

IXUS’s CAGR is 0.34 percentage points lower than that of SCHF and as a result, would have yielded $344 more on a $10,000 investment. Thus, IXUS performed worse than SCHF by 0.34% annually.


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