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IXUS vs. VV: What’s The Difference?

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

The expense ratio of IXUS is 0.05 percentage points higher than VV’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 VV over the past ten years.

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

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Summary

IXUSVV
NameiShares Core MSCI Total International Stock ETFVanguard Large-Cap Index Fund ETF Shares
CategoryForeign Large BlendLarge Blend
IssueriSharesVanguard
AUM29.54B37.65B
Avg. Return6.09%14.75%
Div. Yield2.13%1.26%
Expense Ratio0.09%0.04%

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 Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.

IXUS’s dividend yield is 0.87% higher than that of VV (2.13% vs. 1.26%). Also, IXUS yielded on average 8.66% less per year over the past decade (6.09% vs. 14.75%). The expense ratio of IXUS is 0.05 percentage points higher than VV’s (0.09% vs. 0.04%).

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Fund Composition

Industry Exposure

IXUS vs. VV - Industry Exposure

IXUSVV
Technology13.24%25.38%
Industrials12.78%8.39%
Energy4.39%2.62%
Communication Services7.09%11.68%
Utilities2.95%2.35%
Healthcare9.29%13.22%
Consumer Defensive8.19%6.06%
Real Estate3.66%2.7%
Financial Services17.34%13.82%
Consumer Cyclical12.57%11.65%
Basic Materials8.5%2.13%

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 Large-Cap Index Fund ETF Shares (VV) has the most exposure to the Technology sector at 25.38%. This is followed by Financial Services and Healthcare at 13.82% and 13.22% respectively. Utilities (2.35%), Energy (2.62%), and Real Estate (2.7%) only make up 7.67% of the fund’s total assets.

VV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Consumer Cyclical, Communication Services, and Healthcare stocks at 6.06%, 8.39%, 11.65%, 11.68%, and 13.22%.

IXUS is 3.52% more exposed to the Financial Services sector than VV (17.34% vs 13.82%). IXUS’s exposure to Technology and Industrials stocks is 12.14% lower and 4.39% higher respectively (13.24% vs. 25.38% and 12.78% vs. 8.39%). In total, Real Estate, Energy, and Communication Services also make up 1.86% less of the fund’s holdings compared to VV (15.14% vs. 17.00%).

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%.

VV - Holdings

VV HoldingsWeight
Apple Inc5.7%
Microsoft Corp5.35%
Amazon.com Inc3.87%
Facebook Inc Class A2.19%
Alphabet Inc Class A1.93%
Alphabet Inc Class C1.81%
Tesla Inc1.37%
Berkshire Hathaway Inc Class B1.3%
NVIDIA Corp1.24%
JPMorgan Chase & Co1.24%

VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.

Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.

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Risk Analysis

IXUSVV
Mean Return01.24
R-squared099.86
Std. Deviation013.75
Alpha0-0.08
Beta01.01
Sharpe Ratio01.04
Treynor Ratio014.14

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

The Vanguard Large-Cap Index Fund ETF Shares (VV) has a Alpha of -0.08 with a R-squared of 99.86 and a Beta of 1.01. Its Mean Return is 1.24 while VV’s Sharpe Ratio is 1.04. Furthermore, the fund has a Standard Deviation of 13.75 and a Treynor Ratio of 14.14.

IXUS’s Mean Return is 1.24 points lower than that of VV and its R-squared is 99.86 points lower. With a Standard Deviation of 0, IXUS is slightly less volatile than VV. The Alpha and Beta of IXUS are 0.08 points higher and 1.01 points lower than VV’s Alpha and Beta.

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Performance

Annual Returns

IXUS vs. VV - Annual Returns

YearIXUSVV
202011.14%20.99%
201921.85%31.39%
2018-14.55%-4.44%
201728.08%22.03%
20164.66%11.65%
2015-4.62%1.07%
2014-3.96%13.39%
201315.85%32.65%
20120.0%16.09%
20110.0%1.58%
20100.0%15.81%

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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.

Portfolio Growth

IXUS vs. VV - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IXUS$10,000$14,2096.09%
VV$10,000$23,71914.75%

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 VV, the end total would have been $23,719. This equates to a $13,719 profit over 7 years and a compound annual growth rate (CAGR) of 14.75%.

IXUS’s CAGR is 8.66 percentage points lower than that of VV and as a result, would have yielded $9,510 less on a $10,000 investment. Thus, IXUS performed worse than VV by 8.66% annually.


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