SCHX vs. IXUS: What’s The Difference?

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

The expense ratio of SCHX is 0.06 percentage points lower than IXUS’s (0.03% vs. 0.09%). SCHX also has a higher exposure to the technology sector and a higher standard deviation. Overall, SCHX has provided higher returns than IXUS over the past ten years.

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

Summary

SCHX IXUS
Name Schwab U.S. Large-Cap ETF iShares Core MSCI Total International Stock ETF
Category Large Blend Foreign Large Blend
Issuer Schwab ETFs iShares
AUM 30.89B 29.54B
Avg. Return 14.60% 6.09%
Div. Yield 1.41% 2.13%
Expense Ratio 0.03% 0.09%

The Schwab U.S. Large-Cap ETF (SCHX) is a Large Blend fund that is issued by Schwab ETFs. It currently has 30.89B total assets under management and has yielded an average annual return of 14.60% over the past 10 years. The fund has a dividend yield of 1.41% with an expense ratio of 0.03%.

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%.

SCHX’s dividend yield is 0.72% lower than that of IXUS (1.41% vs. 2.13%). Also, SCHX yielded on average 8.52% more per year over the past decade (14.60% vs. 6.09%). The expense ratio of SCHX is 0.06 percentage points lower than IXUS’s (0.03% vs. 0.09%).

Fund Composition

Industry Exposure

SCHX vs. IXUS - Industry Exposure

SCHX IXUS
Technology 25.13% 13.24%
Industrials 8.65% 12.78%
Energy 2.72% 4.39%
Communication Services 11.26% 7.09%
Utilities 2.37% 2.95%
Healthcare 13.04% 9.29%
Consumer Defensive 5.97% 8.19%
Real Estate 3.13% 3.66%
Financial Services 13.82% 17.34%
Consumer Cyclical 11.63% 12.57%
Basic Materials 2.28% 8.5%

The Schwab U.S. Large-Cap ETF (SCHX) has the most exposure to the Technology sector at 25.13%. This is followed by Financial Services and Healthcare at 13.82% and 13.04% respectively. Utilities (2.37%), Energy (2.72%), and Real Estate (3.13%) only make up 8.22% of the fund’s total assets.

SCHX’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.97%, 8.65%, 11.26%, 11.63%, and 13.04%.

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%.

SCHX is 11.89% more exposed to the Technology sector than IXUS (25.13% vs 13.24%). SCHX’s exposure to Financial Services and Healthcare stocks is 3.52% lower and 3.75% higher respectively (13.82% vs. 17.34% and 13.04% vs. 9.29%). In total, Utilities, Energy, and Real Estate also make up 2.78% less of the fund’s holdings compared to IXUS (8.22% vs. 11.00%).

Holdings

SCHX - Holdings

SCHX Holdings Weight
Apple Inc 5.37%
Microsoft Corp 5.1%
Amazon.com Inc 3.69%
Facebook Inc A 2.08%
Alphabet Inc A 1.84%
Alphabet Inc Class C 1.78%
Berkshire Hathaway Inc Class B 1.32%
Tesla Inc 1.31%
NVIDIA Corp 1.25%
JPMorgan Chase & Co 1.18%

SCHX’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.37%, 5.1%, 3.69%, 2.08%, and 1.84%.

Alphabet Inc Class C (1.78%), Berkshire Hathaway Inc Class B (1.32%), and Tesla Inc (1.31%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SCHX’s holdings at 1.25% and 1.18%.

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%.

Risk Analysis

SCHX IXUS
Mean Return 1.24 0
R-squared 99.83 0
Std. Deviation 13.8 0
Alpha -0.14 0
Beta 1.02 0
Sharpe Ratio 1.03 0
Treynor Ratio 14.06 0

The Schwab U.S. Large-Cap ETF (SCHX) has a Mean Return of 1.24 with a Alpha of -0.14 and a Sharpe Ratio of 1.03. Its Standard Deviation is 13.8 while SCHX’s Treynor Ratio is 14.06. Furthermore, the fund has a Beta of 1.02 and a R-squared of 99.83.

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

SCHX’s Mean Return is 1.24 points higher than that of IXUS and its R-squared is 99.83 points higher. With a Standard Deviation of 13.8, SCHX is slightly more volatile than IXUS. The Alpha and Beta of SCHX are 0.14 points lower and 1.02 points higher than IXUS’s Alpha and Beta.

Performance

Annual Returns

SCHX vs. IXUS - Annual Returns

Year SCHX IXUS
2020 20.9% 11.14%
2019 31.4% 21.85%
2018 -4.52% -14.55%
2017 21.91% 28.08%
2016 11.78% 4.66%
2015 1.02% -4.62%
2014 13.33% -3.96%
2013 32.54% 15.85%
2012 16.06% 0.0%
2011 1.61% 0.0%
2010 15.88% 0.0%

SCHX had its best year in 2013 with an annual return of 32.54%. SCHX’s worst year over the past decade yielded -4.52% and occurred in 2018. In most years the Schwab U.S. Large-Cap ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.33%, 15.88%, and 16.06% respectively.

The year 2017 was the strongest year for IXUS, returning 28.08% on an annual basis. The poorest year for IXUS in the last ten years was 2018, with a yield of -14.55%. Most years the iShares Core MSCI Total International Stock ETF has given investors modest returns, such as in 2011, 2010, and 2016, when gains were 0.0%, 0.0%, and 4.66% respectively.

Portfolio Growth

SCHX vs. IXUS - Portfolio Growth

Fund Initial Balance Final Balance CAGR
SCHX $10,000 $23,664 14.60%
IXUS $10,000 $14,209 6.09%

A $10,000 investment in SCHX would have resulted in a final balance of $23,664. This is a profit of $13,664 over 7 years and amounts to a compound annual growth rate (CAGR) of 14.60%.

With a $10,000 investment in IXUS, the end total would have been $14,209. This equates to a $4,209 profit over 7 years and a compound annual growth rate (CAGR) of 6.09%.

SCHX’s CAGR is 8.52 percentage points higher than that of IXUS and as a result, would have yielded $9,455 more on a $10,000 investment. Thus, SCHX outperformed IXUS by 8.52% annually.


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