Which Is the Better Buy: Vanguard's Total World ETF or iShares' Emerging Markets EEM?
VT's lower 0.06% expense ratio and stronger 5-year returns make it the cost-efficient choice, while EEM offers concentrated emerging market exposure with higher near-term gains.
Overview
Comparing Vanguard Total World Stock ETF (NYSEMKT:VT) and iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) reveals a trade-off between broad global diversification and concentrated emerging market exposure at a higher cost.
While both funds offer significant exposure to international stocks, they serve different strategic roles in a portfolio. iShares MSCI Emerging Markets ETF focuses strictly on the volatile but high-growth potential of developing economies like China and South Korea. Conversely, Vanguard Total World Stock ETF provides a "one-stop shop" for global equity exposure across all market caps.
Details
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.
Source
Originally published at www.fool.com.