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IXUS vs. TQQQ: What’s The Difference?

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

The expense ratio of IXUS is 0.86 percentage points lower than TQQQ’s (0.09% vs. 0.95%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than TQQQ over the past ten years.

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

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Summary

IXUSTQQQ
NameiShares Core MSCI Total International Stock ETFProShares UltraPro QQQ
CategoryForeign Large BlendTrading–Leveraged Equity
IssueriSharesProShares
AUM29.54B12.41B
Avg. Return6.09%61.22%
Div. Yield2.13%0.0%
Expense Ratio0.09%0.95%

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 ProShares UltraPro QQQ (TQQQ) is a Trading–Leveraged Equity fund that is issued by ProShares. It currently has 12.41B total assets under management and has yielded an average annual return of 61.22% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.95%.

IXUS’s dividend yield is 2.13% higher than that of TQQQ (2.13% vs. 0.0%). Also, IXUS yielded on average 55.14% less per year over the past decade (6.09% vs. 61.22%). The expense ratio of IXUS is 0.86 percentage points lower than TQQQ’s (0.09% vs. 0.95%).

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Fund Composition

Industry Exposure

IXUS vs. TQQQ - Industry Exposure

IXUSTQQQ
Technology13.24%0.0%
Industrials12.78%0.0%
Energy4.39%0.0%
Communication Services7.09%0.0%
Utilities2.95%0.0%
Healthcare9.29%0.0%
Consumer Defensive8.19%0.0%
Real Estate3.66%0.0%
Financial Services17.34%0.0%
Consumer Cyclical12.57%0.0%
Basic Materials8.5%0.0%

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 ProShares UltraPro QQQ (TQQQ) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.

TQQQ’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.

IXUS is 17.34% more exposed to the Financial Services sector than TQQQ (17.34% vs 0.0%). IXUS’s exposure to Technology and Industrials stocks is 13.24% higher and 12.78% higher respectively (13.24% vs. 0.0% and 12.78% vs. 0.0%). In total, Real Estate, Energy, and Communication Services also make up 15.14% more of the fund’s holdings compared to TQQQ (15.14% vs. 0.00%).

Holdings

IXUS - Holdings

IXUS HoldingsWeight
Taiwan Semiconductor Manufacturing Co Ltd1.64%
Tencent Holdings Ltd1.35%
Alibaba Group Holding Ltd Ordinary Shares1.34%
Nestle SA1.1%
Samsung Electronics Co Ltd1.06%
ASML Holding NV0.9%
Roche Holding AG0.81%
LVMH Moet Hennessy Louis Vuitton SE0.67%
Novartis AG0.62%
Toyota Motor Corp0.59%

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%.

TQQQ - Holdings

TQQQ HoldingsWeight
Nasdaq 100 Index Swap Goldman Sachs International45.11%
Nasdaq 100 Index Swap Societe Generale44.73%
Nasdaq 100 Index Swap Bnp Paribas38.05%
Nasdaq 100 Index Swap Bank Of America Na31.53%
Nasdaq 100 Index Swap Citibank Na31.49%
Nasdaq 100 Index Swap Jp Morgan Securities26.2%
Apple Inc7.49%
Microsoft Corp6.69%
Nasdaq 100 Index Swap Credit Suisse International5.9%
Amazon.com Inc5.68%

TQQQ’s Top Holdings are Nasdaq 100 Index Swap Goldman Sachs International, Nasdaq 100 Index Swap Societe Generale, Nasdaq 100 Index Swap Bnp Paribas, Nasdaq 100 Index Swap Bank Of America Na, and Nasdaq 100 Index Swap Citibank Na at 45.11%, 44.73%, 38.05%, 31.53%, and 31.49%.

Nasdaq 100 Index Swap Jp Morgan Securities (26.2%), Apple Inc (7.49%), and Microsoft Corp (6.69%) have a slightly smaller but still significant weight. Nasdaq 100 Index Swap Credit Suisse International and Amazon.com Inc are also represented in the TQQQ’s holdings at 5.9% and 5.68%.

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Risk Analysis

IXUSTQQQ
Mean Return04.65
R-squared083.64
Std. Deviation050.08
Alpha07.29
Beta03.37
Sharpe Ratio01.1
Treynor Ratio015.65

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

The ProShares UltraPro QQQ (TQQQ) has a Standard Deviation of 50.08 with a Treynor Ratio of 15.65 and a Beta of 3.37. Its Mean Return is 4.65 while TQQQ’s Sharpe Ratio is 1.1. Furthermore, the fund has a R-squared of 83.64 and a Alpha of 7.29.

IXUS’s Mean Return is 4.65 points lower than that of TQQQ and its R-squared is 83.64 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than TQQQ. The Alpha and Beta of IXUS are 7.29 points lower and 3.37 points lower than TQQQ’s Alpha and Beta.

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Performance

Annual Returns

IXUS vs. TQQQ - Annual Returns

YearIXUSTQQQ
202011.14%109.85%
201921.85%133.93%
2018-14.55%-19.65%
201728.08%118.65%
20164.66%11.04%
2015-4.62%17.41%
2014-3.96%56.82%
201315.85%139.98%
20120.0%51.95%
20110.0%-7.77%
20100.0%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 TQQQ, returning 139.98% on an annual basis. The poorest year for TQQQ in the last ten years was 2018, with a yield of -19.65%. Most years the ProShares UltraPro QQQ has given investors modest returns, such as in 2015, 2012, and 2014, when gains were 17.41%, 51.95%, and 56.82% respectively.

Portfolio Growth

IXUS vs. TQQQ - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IXUS$10,000$14,2096.09%
TQQQ$10,000$176,32561.22%

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 TQQQ, the end total would have been $176,325. This equates to a $166,325 profit over 7 years and a compound annual growth rate (CAGR) of 61.22%.

IXUS’s CAGR is 55.14 percentage points lower than that of TQQQ and as a result, would have yielded $162,116 less on a $10,000 investment. Thus, IXUS performed worse than TQQQ by 55.14% annually.


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