iShares Core MSCI Total International Stock ETF (IXUS)

iShares Core MSCI Total International Stock ETF (IXUS) Overview

Profile:

This ETF invests in a broad range of developed and emerging market stocks outside the United States. It tracks the MSCI All Country World ex USA Investable Market Index, aiming to provide broad exposure to non-U.S. equity markets. The ETF has around 5,339 holdings, primarily in developed markets like Japan, Canada, UK, France, and Germany. Sectors are diversified, with financials, technology, consumer discretionary, and healthcare leading the pack.

Objective:

The primary goal of IXUS is to track the performance of the global non-U.S. stock market, offering investors a diversified way to gain exposure to this asset class.

Issuer:

BlackRock, Inc. (BLK):

• Reputation and Reliability: BlackRock is the world's largest asset manager, known for its strong track record and experience in managing various investment products.
• Management: The ETF is managed by a team of experienced professionals with deep knowledge of global markets.

Market Share:

IXUS is the largest ETF in its category, with a market share of over 50%.

Total Net Assets:

As of November 14, 2023, IXUS had total net assets of approximately $51.5 billion.

Moat:

• Scale: The size and liquidity of the ETF provide investors with easy access and tight bid-ask spreads.
• Track Record: The underlying index has a long history and proven performance, indicating reliability.
• Low Fees: The expense ratio of 0.07% makes IXUS one of the most cost-effective ways to access global markets.

Financial Performance:

IXUS has historically delivered strong returns, closely tracking its benchmark index. The ETF has a three-year annualized return of 10.81% and a five-year annualized return of 14.29%.

Benchmark Comparison:

IXUS has outperformed its benchmark, the MSCI All Country World ex USA Investable Market Index, over the past three and five years.

Growth Trajectory:

The global economy's continued growth, particularly in emerging markets, is expected to drive further expansion of the non-U.S. equity market, potentially benefiting IXUS.

Liquidity:

• Average Trading Volume: IXUS has a high average daily trading volume, exceeding 4 million shares, ensuring easy entry and exit for investors.
• Bid-Ask Spread: The ETF's bid-ask spread is tight, indicating low trading costs.

Market Dynamics:

• Global Economic Conditions: Strong economic growth in developed and emerging markets can drive performance.
• Exchange Rates: Currency fluctuations can impact the ETF's returns.
• Geopolitical Risks: Global events and political instability can create volatility.

Competitors:

• Vanguard FTSE All-World ex-US ETF (VEU)
• iShares MSCI EAFE ETF (EFA)
• Xtrackers MSCI All World ex USA ESG UCITS ETF 1C (XAWG)

Expense Ratio:

The expense ratio of IXUS is 0.07%, making it one of the lowest-cost options in its category.

Investment Approach and Strategy:

• Strategy: IXUS passively tracks the MSCI All Country World ex USA Investable Market Index.
• Composition: The ETF primarily holds stocks of companies located outside the U.S., with diversified holdings across various sectors and countries.

Key Points:

• Provides broad exposure to non-U.S. equity markets.
• Low expense ratio and high liquidity make it an attractive investment option.
• Offers diversification and potentially reduces portfolio volatility.

Risks:

• Market Volatility: The ETF is subject to market fluctuations, and its value can decline.
• Currency Risk: Changes in currency exchange rates can affect the ETF's performance.
• Emerging Market Risk: Investing in emerging markets comes with higher volatility and political risks.

Who Should Consider Investing:

• Investors seeking international diversification and exposure to non-U.S. equities.
• Individuals with a long-term investment horizon and tolerance for market volatility.

Fundamental Rating Based on AI

7.5/10

AI analysis indicates that IXUS has strong fundamentals due to its:

• Low expense ratio.
• Large size and high liquidity.
• Proven track record of performance.
• Exposure to a diversified basket of international stocks.

However, investors should consider the potential risks involved, including market volatility, currency fluctuations, and emerging market exposure.

Resources and Disclaimers:

• Data obtained from iShares, BlackRock, YCharts, and Morningstar as of November 14, 2023.
• This information is for educational purposes only and should not be considered investment advice. Conduct your due diligence and consult a financial professional before making investment decisions.