VXUS Has Delivered Better Returns Than IEFA Over the Past 5 Years. Should It Be in Your Portfolio?
The Vanguard Total International Stock ETF's (VXUS) outperformance stems from where it invests.
VXUS Has Delivered Better Returns Than IEFA Over the Past 5 Years. Should It Be in Your Portfolio?
Overview
In 2026, the Vanguard Total International Stock ETF (NASDAQ: VXUS) has returned 11.5% compared to a 7.9% gain for the iShares Core MSCI EAFE ETF (NYSEMKT: IEFA). That year-to-date outperformance has pushed the Vanguard ETF ahead on a trailing one-, three-, five-, and 10-year basis.
Both international exchange-traded funds (ETFs) invest in a wide variety of foreign stocks, but the biggest difference is the markets they invest in. The iShares Core MSCI EAFE ETF holds more than 2,600 stocks, but they're all from developed markets. The Vanguard Total International Stock ETF holds 8,700 stocks, spanning both developed and emerging markets.
Details
The choice between them comes down to whether you want emerging markets exposure. I prefer the ETF that owns those markets.
Source
Originally published at www.fool.com.
