IEFA vs. EEM: Which International ETF Is Better for Long-Term Investors?
Compare sector exposure, risk profiles, and top holdings to see how these two international ETFs stack up for portfolio diversification.
IEFA vs. EEM: Which International ETF Is Better for Long-Term Investors?
Overview
Both the iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) and the iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) offer international equity exposure, but they serve different roles in a diversified portfolio. IEFA tracks developed markets like Japan and Europe, whereas EEM focuses on developing nations such as China and South Korea. This comparison helps clarify which regional focus aligns with your strategy.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a significant differentiator, as the iShares Core MSCI EAFE ETF is much more affordable with a 0.07% expense ratio. The iShares Core MSCI EAFE ETF also offers a higher payout for those focused on income.
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Source
Originally published at www.fool.com.
