The iShares Core MSCI Total International Stock ETF (IXUS) and the iShares MSCI USA Value Factor ETF (VLUE) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and VLUE is a iShares Large Value fund. So, what’s the difference between IXUS and VLUE? And which fund is better?
The expense ratio of IXUS is 0.06 percentage points lower than VLUE’s (0.09% vs. 0.15%). IXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than VLUE over the past ten years.
In this article, we’ll compare IXUS vs. VLUE. We’ll look at annual returns and fund composition, as well as at their risk metrics and portfolio growth. Moreover, I’ll also discuss IXUS’s and VLUE’s performance, industry exposure, and holdings and examine how these affect their overall returns.
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Summary
| IXUS | VLUE | |
| Name | iShares Core MSCI Total International Stock ETF | iShares MSCI USA Value Factor ETF |
| Category | Foreign Large Blend | Large Value |
| Issuer | iShares | iShares |
| AUM | 29.54B | 15.95B |
| Avg. Return | 6.09% | 8.91% |
| Div. Yield | 2.13% | 1.89% |
| Expense Ratio | 0.09% | 0.15% |
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 iShares MSCI USA Value Factor ETF (VLUE) is a Large Value fund that is issued by iShares. It currently has 15.95B total assets under management and has yielded an average annual return of 8.91% over the past 10 years. The fund has a dividend yield of 1.89% with an expense ratio of 0.15%.
IXUS’s dividend yield is 0.24% higher than that of VLUE (2.13% vs. 1.89%). Also, IXUS yielded on average 2.82% less per year over the past decade (6.09% vs. 8.91%). The expense ratio of IXUS is 0.06 percentage points lower than VLUE’s (0.09% vs. 0.15%).
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Fund Composition
Industry Exposure
| IXUS | VLUE | |
| Technology | 13.24% | 26.89% |
| Industrials | 12.78% | 9.14% |
| Energy | 4.39% | 2.42% |
| Communication Services | 7.09% | 10.39% |
| Utilities | 2.95% | 2.68% |
| Healthcare | 9.29% | 14.31% |
| Consumer Defensive | 8.19% | 7.22% |
| Real Estate | 3.66% | 3.19% |
| Financial Services | 17.34% | 10.96% |
| Consumer Cyclical | 12.57% | 10.66% |
| Basic Materials | 8.5% | 2.14% |
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 iShares MSCI USA Value Factor ETF (VLUE) has the most exposure to the Technology sector at 26.89%. This is followed by Healthcare and Financial Services at 14.31% and 10.96% respectively. Energy (2.42%), Utilities (2.68%), and Real Estate (3.19%) only make up 8.29% of the fund’s total assets.
VLUE’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Financial Services stocks at 7.22%, 9.14%, 10.39%, 10.66%, and 10.96%.
IXUS is 6.38% more exposed to the Financial Services sector than VLUE (17.34% vs 10.96%). IXUS’s exposure to Technology and Industrials stocks is 13.65% lower and 3.64% higher respectively (13.24% vs. 26.89% and 12.78% vs. 9.14%). In total, Real Estate, Energy, and Communication Services also make up 0.86% less of the fund’s holdings compared to VLUE (15.14% vs. 16.00%).
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%.
| VLUE Holdings | Weight |
| AT&T Inc | 7.13% |
| Intel Corp | 6.14% |
| General Motors Co | 3.19% |
| Micron Technology Inc | 3.14% |
| Cisco Systems Inc | 3.05% |
| International Business Machines Corp | 2.76% |
| Target Corp | 2.38% |
| Citigroup Inc | 2.32% |
| Ford Motor Co | 2.23% |
| Pfizer Inc | 2.17% |
VLUE’s Top Holdings are AT&T Inc, Intel Corp, General Motors Co, Micron Technology Inc, and Cisco Systems Inc at 7.13%, 6.14%, 3.19%, 3.14%, and 3.05%.
International Business Machines Corp (2.76%), Target Corp (2.38%), and Citigroup Inc (2.32%) have a slightly smaller but still significant weight. Ford Motor Co and Pfizer Inc are also represented in the VLUE’s holdings at 2.23% and 2.17%.
Risk Analysis
| IXUS | VLUE | |
| 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 Sharpe Ratio of 0 with a Mean Return of 0 and a Alpha of 0. Its R-squared is 0 while IXUS’s Standard Deviation is 0. Furthermore, the fund has a Beta of 0 and a Treynor Ratio of 0.
The iShares MSCI USA Value Factor ETF (VLUE) has a Standard Deviation of 0 with a Treynor Ratio of 0 and a R-squared of 0. Its Beta is 0 while VLUE’s Sharpe Ratio is 0. Furthermore, the fund has a Alpha of 0 and a Mean Return of 0.
IXUS’s Mean Return is 0.00 points lower than that of VLUE and its R-squared is 0.00 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than VLUE. The Alpha and Beta of IXUS are 0.00 points lower and 0.00 points lower than VLUE’s Alpha and Beta.
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Performance
Annual Returns
| Year | IXUS | VLUE |
| 2020 | 11.14% | -0.32% |
| 2019 | 21.85% | 27.47% |
| 2018 | -14.55% | -11.18% |
| 2017 | 28.08% | 21.97% |
| 2016 | 4.66% | 15.68% |
| 2015 | -4.62% | -3.54% |
| 2014 | -3.96% | 12.29% |
| 2013 | 15.85% | 0.0% |
| 2012 | 0.0% | 0.0% |
| 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 2019 was the strongest year for VLUE, returning 27.47% on an annual basis. The poorest year for VLUE in the last ten years was 2018, with a yield of -11.18%. Most years the iShares MSCI USA Value Factor ETF has given investors modest returns, such as in 2012, 2011, and 2010, when gains were 0.0%, 0.0%, and 0.0% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| IXUS | $10,000 | $14,209 | 6.09% |
| VLUE | $10,000 | $17,247 | 8.91% |
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 VLUE, the end total would have been $17,247. This equates to a $7,247 profit over 7 years and a compound annual growth rate (CAGR) of 8.91%.
IXUS’s CAGR is 2.82 percentage points lower than that of VLUE and as a result, would have yielded $3,038 less on a $10,000 investment. Thus, IXUS performed worse than VLUE by 2.82% annually.
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