Looking for International Exposure? iShares' EAFE ETF Beats Vanguard's Emerging Markets ETF on Dividend Yield and Stability
IEFA delivered $1,555 on a $1,000 five-year investment versus VWO's $1,416, though VWO charges a marginally lower 0.06% expense ratio.
Overview
The iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) targets developed international markets, while the Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) provides exposure to developing economies like China, Brazil, and Taiwan.
Both funds offer broad international equity exposure but operate in different economic spheres. While the iShares fund focuses on established markets in Europe and Japan, the Vanguard fund seeks growth in emerging regions, serving as distinct building blocks for a global portfolio.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.