The iShares Core MSCI Total International Stock ETF (IXUS) and the SPDR S&P Dividend ETF (SDY) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and SDY is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between IXUS and SDY? And which fund is better?
The expense ratio of IXUS is 0.26 percentage points lower than SDY’s (0.09% vs. 0.35%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than SDY over the past ten years.
In this article, we’ll compare IXUS vs. SDY. We’ll look at fund composition and industry exposure, as well as at their annual returns and portfolio growth. Moreover, I’ll also discuss IXUS’s and SDY’s risk metrics, holdings, and performance and examine how these affect their overall returns.
Summary
| IXUS | SDY | |
| Name | iShares Core MSCI Total International Stock ETF | SPDR S&P Dividend ETF |
| Category | Foreign Large Blend | Large Value |
| Issuer | iShares | SPDR State Street Global Advisors |
| AUM | 29.54B | 19.67B |
| Avg. Return | 6.09% | 12.44% |
| Div. Yield | 2.13% | 2.65% |
| Expense Ratio | 0.09% | 0.35% |
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 SPDR S&P Dividend ETF (SDY) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 19.67B total assets under management and has yielded an average annual return of 12.44% over the past 10 years. The fund has a dividend yield of 2.65% with an expense ratio of 0.35%.
IXUS’s dividend yield is 0.52% lower than that of SDY (2.13% vs. 2.65%). Also, IXUS yielded on average 6.35% less per year over the past decade (6.09% vs. 12.44%). The expense ratio of IXUS is 0.26 percentage points lower than SDY’s (0.09% vs. 0.35%).
Fund Composition
Industry Exposure
| IXUS | SDY | |
| Technology | 13.24% | 2.0% |
| Industrials | 12.78% | 15.89% |
| Energy | 4.39% | 5.95% |
| Communication Services | 7.09% | 4.64% |
| Utilities | 2.95% | 12.14% |
| Healthcare | 9.29% | 7.35% |
| Consumer Defensive | 8.19% | 14.01% |
| Real Estate | 3.66% | 6.57% |
| Financial Services | 17.34% | 16.32% |
| Consumer Cyclical | 12.57% | 8.68% |
| Basic Materials | 8.5% | 6.45% |
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 SPDR S&P Dividend ETF (SDY) has the most exposure to the Financial Services sector at 16.32%. This is followed by Industrials and Consumer Defensive at 15.89% and 14.01% respectively. Communication Services (4.64%), Energy (5.95%), and Basic Materials (6.45%) only make up 17.04% of the fund’s total assets.
SDY’s mid-section with moderate exposure is comprised of Real Estate, Healthcare, Consumer Cyclical, Utilities, and Consumer Defensive stocks at 6.57%, 7.35%, 8.68%, 12.14%, and 14.01%.
IXUS is 1.02% more exposed to the Financial Services sector than SDY (17.34% vs 16.32%). IXUS’s exposure to Technology and Industrials stocks is 11.24% higher and 3.11% lower respectively (13.24% vs. 2.0% and 12.78% vs. 15.89%). In total, Real Estate, Energy, and Communication Services also make up 2.02% less of the fund’s holdings compared to SDY (15.14% vs. 17.16%).
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%.
| SDY Holdings | Weight |
| Exxon Mobil Corp | 2.81% |
| AT&T Inc | 2.5% |
| South Jersey Industries Inc | 2.22% |
| Chevron Corp | 2.02% |
| International Business Machines Corp | 2.0% |
| AbbVie Inc | 1.93% |
| National Retail Properties Inc | 1.86% |
| Federal Realty Investment Trust | 1.77% |
| Realty Income Corp | 1.7% |
| Old Republic International Corp | 1.65% |
SDY’s Top Holdings are Exxon Mobil Corp, AT&T Inc, South Jersey Industries Inc, Chevron Corp, and International Business Machines Corp at 2.81%, 2.5%, 2.22%, 2.02%, and 2.0%.
AbbVie Inc (1.93%), National Retail Properties Inc (1.86%), and Federal Realty Investment Trust (1.77%) have a slightly smaller but still significant weight. Realty Income Corp and Old Republic International Corp are also represented in the SDY’s holdings at 1.7% and 1.65%.
Risk Analysis
| IXUS | SDY | |
| Mean Return | 0 | 1.07 |
| R-squared | 0 | 83.62 |
| Std. Deviation | 0 | 12.9 |
| Alpha | 0 | -0.1 |
| Beta | 0 | 0.87 |
| Sharpe Ratio | 0 | 0.95 |
| Treynor Ratio | 0 | 13.94 |
The iShares Core MSCI Total International Stock ETF (IXUS) has a Alpha of 0 with a Mean Return of 0 and a Treynor Ratio of 0. Its R-squared is 0 while IXUS’s Beta is 0. Furthermore, the fund has a Standard Deviation of 0 and a Sharpe Ratio of 0.
The SPDR S&P Dividend ETF (SDY) has a R-squared of 83.62 with a Treynor Ratio of 13.94 and a Standard Deviation of 12.9. Its Sharpe Ratio is 0.95 while SDY’s Mean Return is 1.07. Furthermore, the fund has a Beta of 0.87 and a Alpha of -0.1.
IXUS’s Mean Return is 1.07 points lower than that of SDY and its R-squared is 83.62 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than SDY. The Alpha and Beta of IXUS are 0.10 points higher and 0.87 points lower than SDY’s Alpha and Beta.
Performance
Annual Returns
| Year | IXUS | SDY |
| 2020 | 11.14% | 1.78% |
| 2019 | 21.85% | 23.37% |
| 2018 | -14.55% | -2.73% |
| 2017 | 28.08% | 15.84% |
| 2016 | 4.66% | 20.17% |
| 2015 | -4.62% | -0.7% |
| 2014 | -3.96% | 13.8% |
| 2013 | 15.85% | 30.09% |
| 2012 | 0.0% | 11.51% |
| 2011 | 0.0% | 7.28% |
| 2010 | 0.0% | 16.41% |
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 SDY, returning 30.09% on an annual basis. The poorest year for SDY in the last ten years was 2018, with a yield of -2.73%. Most years the SPDR S&P Dividend ETF has given investors modest returns, such as in 2012, 2014, and 2017, when gains were 11.51%, 13.8%, and 15.84% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,209 | 6.09% |
| SDY | $10,000 | $19,213 | 12.44% |
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 SDY, the end total would have been $19,213. This equates to a $9,213 profit over 7 years and a compound annual growth rate (CAGR) of 12.44%.
IXUS’s CAGR is 6.35 percentage points lower than that of SDY and as a result, would have yielded $5,004 less on a $10,000 investment. Thus, IXUS performed worse than SDY by 6.35% annually.
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