Exchange-Traded Funds (ETFs) have transformed the landscape of modern investing by offering diversified exposure to a wide array of sectors and asset classes. In this comprehensive analysis, we will delve into the comparison of two prominent ETFs: IXUS (iShares Core MSCI Total International Stock ETF) and GSG (iShares S&P GSCI Commodity-Indexed Trust). This exploration will encompass essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.
IXUS and GSG are two distinct ETFs catering to different segments of the investment world. IXUS provides exposure to international equities across various developed and emerging markets, while GSG focuses on commodities, including energy, agriculture, and metals. These contrasting investment scopes translate into unique risk and return profiles, a theme that we'll delve into further in the subsequent sections.
The iShares Core MSCI Total International Stock ETF (IXUS) spans a broad spectrum of sectors, including financials, technology, healthcare, and more. It includes a multitude of companies from different countries, offering investors a comprehensive international equity exposure. On the other hand, the iShares S&P GSCI Commodity-Indexed Trust (GSG) concentrates on commodities like energy (oil and natural gas), agriculture (corn and soybeans), and metals (gold and aluminum). Understanding the sectors and top holdings helps investors tailor their portfolios according to their investment preferences.
IXUS overlap IXUS VS GSG: A Comprehensive Comparison of ETFs
IXUS boasts a substantial Asset Under Management (AUM) due to its broad coverage of international equities. Its investment strategy focuses on replicating the performance of the MSCI ACWI ex USA Investable Market Index. On the other hand, GSG's investment strategy involves tracking the S&P GSCI Index, which is composed of a diversified basket of commodities. The disparity in capitalization and investment strategy is a critical factor for investors assessing potential risks and rewards associated with these ETFs.
IXUS tracks its underlying index by investing in a diversified portfolio of international equities. It aims to capture the performance of non-U.S. developed and emerging markets. GSG, on the other hand, provides exposure to commodities through futures contracts. This methodology allows investors to gain exposure to the broader commodity market without needing to directly hold physical commodities. The tracking methods and exposure of these ETFs contribute to their distinct risk profiles.
IXUS and GSG represent two divergent investment opportunities within the realm of ETFs. While IXUS offers a global perspective on equities from various international markets, GSG allows investors to tap into the potential of the commodities market. For individuals seeking deeper insights into holdings, correlations, overlaps, and other critical information, ETF Insider serves as an invaluable tool. With its user-friendly app, investors can gain comprehensive insights into these and other financial instruments.
Disclaimer: This article is intended for informational purposes only and does not provide any investment advisory services.
Sources:
iShares by BlackRock (IXUS)
iShares by BlackRock (GSG)
IXUS ETF issuer
IXUS ETF official page
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