IEFA vs. VXUS: Both Are Cheap. Both Are Broad. Here Is the Key Difference Long-Term Investors Need to Understand.
These international stock ETFs from iShares and Vanguard are very different once you look under the surface.
Overview
As core international stock ETFs go, the iShares Core MSCI EAFE ETF (NYSEMKT: IEFA) and the Vanguard Total International Stock ETF (NASDAQ: VXUS) are among the best. Both have expense ratios of less than 0.1%. Both hold thousands of stocks, making diversification a non-issue.
But they're not nearly the same. Their target markets are different. Their key holdings are different. Their sector exposures are different. Both can act as core international equity funds, but the reality of these ETFs is very simple: One is a complete international fund, and one is not.
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Originally published at www.fool.com.
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