IXUS vs. VOE: What’s The Difference?

The iShares Core MSCI Total International Stock ETF (IXUS) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. IXUS is a iShares Foreign Large Blend fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between IXUS and VOE? And which fund is better?

The expense ratio of IXUS is 0.02 percentage points higher than VOE’s (0.09% vs. 0.07%). IXUS also has a lower exposure to the financial services sector and a lower standard deviation. Overall, IXUS has provided lower returns than VOE over the past ten years.

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

Summary

IXUS VOE
Name iShares Core MSCI Total International Stock ETF Vanguard Mid-Cap Value Index Fund ETF Shares
Category Foreign Large Blend Mid-Cap Value
Issuer iShares Vanguard
AUM 29.54B 26.78B
Avg. Return 6.09% 12.52%
Div. Yield 2.13% 1.87%
Expense Ratio 0.09% 0.07%

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 Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.

IXUS’s dividend yield is 0.26% higher than that of VOE (2.13% vs. 1.87%). Also, IXUS yielded on average 6.44% less per year over the past decade (6.09% vs. 12.52%). The expense ratio of IXUS is 0.02 percentage points higher than VOE’s (0.09% vs. 0.07%).

Fund Composition

Industry Exposure

IXUS vs. VOE - Industry Exposure

IXUS VOE
Technology 13.24% 9.85%
Industrials 12.78% 9.4%
Energy 4.39% 5.69%
Communication Services 7.09% 5.27%
Utilities 2.95% 10.93%
Healthcare 9.29% 7.04%
Consumer Defensive 8.19% 4.85%
Real Estate 3.66% 11.48%
Financial Services 17.34% 18.26%
Consumer Cyclical 12.57% 11.8%
Basic Materials 8.5% 5.44%

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 Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.

VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.

IXUS is 0.92% less exposed to the Financial Services sector than VOE (17.34% vs 18.26%). IXUS’s exposure to Technology and Industrials stocks is 3.39% higher and 3.38% higher respectively (13.24% vs. 9.85% and 12.78% vs. 9.4%). In total, Real Estate, Energy, and Communication Services also make up 7.30% less of the fund’s holdings compared to VOE (15.14% vs. 22.44%).

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%.

VOE - Holdings

VOE Holdings Weight
Carrier Global Corp Ordinary Shares 1.28%
International Flavors & Fragrances Inc 1.13%
Motorola Solutions Inc 1.12%
Discover Financial Services 1.09%
Welltower Inc 1.05%
Corteva Inc 0.99%
Valero Energy Corp 0.97%
Corning Inc 0.95%
Willis Towers Watson PLC 0.9%
D.R. Horton Inc 0.89%

VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.

Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.

Risk Analysis

IXUS VOE
Mean Return 0 1.05
R-squared 0 88.76
Std. Deviation 0 15.98
Alpha 0 -3.77
Beta 0 1.11
Sharpe Ratio 0 0.75
Treynor Ratio 0 10.19

The iShares Core MSCI Total International Stock ETF (IXUS) has a R-squared of 0 with a Beta 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 Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Standard Deviation of 15.98 with a Treynor Ratio of 10.19 and a Sharpe Ratio of 0.75. Its Alpha is -3.77 while VOE’s Mean Return is 1.05. Furthermore, the fund has a R-squared of 88.76 and a Beta of 1.11.

IXUS’s Mean Return is 1.05 points lower than that of VOE and its R-squared is 88.76 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than VOE. The Alpha and Beta of IXUS are 3.77 points higher and 1.11 points lower than VOE’s Alpha and Beta.

Performance

Annual Returns

IXUS vs. VOE - Annual Returns

Year IXUS VOE
2020 11.14% 2.5%
2019 21.85% 27.98%
2018 -14.55% -12.41%
2017 28.08% 17.05%
2016 4.66% 15.26%
2015 -4.62% -1.8%
2014 -3.96% 13.98%
2013 15.85% 37.65%
2012 0.0% 16.04%
2011 0.0% -0.32%
2010 0.0% 21.83%

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 VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.

Portfolio Growth

IXUS vs. VOE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
IXUS $10,000 $14,209 6.09%
VOE $10,000 $17,350 12.52%

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 VOE, the end total would have been $17,350. This equates to a $7,350 profit over 7 years and a compound annual growth rate (CAGR) of 12.52%.

IXUS’s CAGR is 6.44 percentage points lower than that of VOE and as a result, would have yielded $3,141 less on a $10,000 investment. Thus, IXUS performed worse than VOE by 6.44% annually.


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