Vanguard Fund Battle: Is The FTSE Developed Markets ETF Better than the FTSE Emerging Markets ETF?
Compare sector allocations, dividend yields, and risk profiles to see how these two global ETFs stack up for international diversification.
Overview
Choosing between Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) and Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) involves deciding whether to prioritize the relative stability of established international markets or the higher growth potential found in developing economies.
International diversification often follows two distinct paths. Vanguard FTSE Developed Markets ETF offers exposure to mature economies like Canada, major European nations, and the Pacific region. Conversely, the Vanguard FTSE Emerging Markets ETF provides access to rapidly growing nations such as China, Brazil, and Taiwan. Both funds allow investors to move beyond U.S. borders, though they capture different stages of global economic development.
Details
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 of the closing price of June 26.
Source
Originally published at www.fool.com.