The iShares Core MSCI Total International Stock ETF (IXUS) and the Schwab U.S. Large-Cap Growth ETF (SCHG) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and SCHG is a Schwab ETFs Large Growth fund. So, what’s the difference between IXUS and SCHG? And which fund is better?
The expense ratio of IXUS is 0.05 percentage points higher than SCHG’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 SCHG over the past ten years.
In this article, we’ll compare IXUS vs. SCHG. We’ll look at performance and portfolio growth, as well as at their industry exposure and holdings. Moreover, I’ll also discuss IXUS’s and SCHG’s annual returns, risk metrics, and fund composition and examine how these affect their overall returns.
|Name||iShares Core MSCI Total International Stock ETF||Schwab U.S. Large-Cap Growth ETF|
|Category||Foreign Large Blend||Large Growth|
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. Large-Cap Growth ETF (SCHG) is a Large Growth fund that is issued by Schwab ETFs. It currently has 15.16B total assets under management and has yielded an average annual return of 17.81% over the past 10 years. The fund has a dividend yield of 0.43% with an expense ratio of 0.04%.
IXUS’s dividend yield is 1.70% higher than that of SCHG (2.13% vs. 0.43%). Also, IXUS yielded on average 11.72% less per year over the past decade (6.09% vs. 17.81%). The expense ratio of IXUS is 0.05 percentage points higher than SCHG’s (0.09% vs. 0.04%).
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. Large-Cap Growth ETF (SCHG) has the most exposure to the Technology sector at 39.21%. This is followed by Communication Services and Consumer Cyclical at 17.07% and 15.01% respectively. Energy (0.2%), Real Estate (1.64%), and Basic Materials (1.68%) only make up 3.52% of the fund’s total assets.
SCHG’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Financial Services, Healthcare, and Consumer Cyclical stocks at 2.15%, 3.01%, 7.98%, 12.05%, and 15.01%.
IXUS is 9.36% more exposed to the Financial Services sector than SCHG (17.34% vs 7.98%). IXUS’s exposure to Technology and Industrials stocks is 25.97% lower and 9.77% higher respectively (13.24% vs. 39.21% and 12.78% vs. 3.01%). In total, Real Estate, Energy, and Communication Services also make up 3.77% less of the fund’s holdings compared to SCHG (15.14% vs. 18.91%).
|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%.
|Facebook Inc A||4.45%|
|Alphabet Inc A||3.93%|
|Alphabet Inc Class C||3.82%|
|Visa Inc Class A||2.12%|
|UnitedHealth Group Inc||2.02%|
SCHG’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 11.49%, 10.91%, 7.89%, 4.45%, and 3.93%.
Alphabet Inc Class C (3.82%), Tesla Inc (2.8%), and NVIDIA Corp (2.67%) have a slightly smaller but still significant weight. Visa Inc Class A and UnitedHealth Group Inc are also represented in the SCHG’s holdings at 2.12% and 2.02%.
The iShares Core MSCI Total International Stock ETF (IXUS) has a Treynor Ratio of 0 with a Mean Return of 0 and a R-squared of 0. Its Beta is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Alpha of 0 and a Sharpe Ratio of 0.
The Schwab U.S. Large-Cap Growth ETF (SCHG) has a R-squared of 92.92 with a Beta of 1.05 and a Mean Return of 1.46. Its Sharpe Ratio is 1.14 while SCHG’s Treynor Ratio is 16.3. Furthermore, the fund has a Alpha of 1.97 and a Standard Deviation of 14.78.
IXUS’s Mean Return is 1.46 points lower than that of SCHG and its R-squared is 92.92 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than SCHG. The Alpha and Beta of IXUS are 1.97 points lower and 1.05 points lower than SCHG’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 2020 was the strongest year for SCHG, returning 39.13% on an annual basis. The poorest year for SCHG in the last ten years was 2018, with a yield of -1.35%. Most years the Schwab U.S. Large-Cap Growth ETF has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 15.74%, 16.83%, and 17.02% 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 SCHG, the end total would have been $30,541. This equates to a $20,541 profit over 7 years and a compound annual growth rate (CAGR) of 17.81%.
IXUS’s CAGR is 11.72 percentage points lower than that of SCHG and as a result, would have yielded $16,332 less on a $10,000 investment. Thus, IXUS performed worse than SCHG by 11.72% annually.
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