These 5 International ETFs Add Stocks From Outside the U.S.

详细摘要

Want exposure beyond U.S. borders? These five low-cost ETFs cover developed markets, emerging markets, or both in a single fund.

The Vanguard FTSE Developed Markets ETF (NYSEMKT: VEA), Vanguard FTSE Emerging Markets ETF (NYSEMKT: VWO), iShares Core MSCI EAFE ETF (NYSEMKT: IEFA), iShares MSCI Emerging Markets ETF (NYSEMKT: EEM), and Vanguard Total International Stock ETF (NASDAQ: VXUS) all enable investors to add some international exposure to their portfolio. However, that doesn't mean these funds are interchangeable. There are some important differences that you should know before adding one of these ETFs to your portfolio.

Here's a look at how to decide which of these top international ETFs is best for your portfolio.

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The Vanguard FTSE Developed Markets ETF and iShares Core MSCI EAFE ETF both invest in developed global markets. These countries have highly industrialized economies, high household and per capita incomes, mature capital markets, and strong regulatory and legal systems.

While these ETFs both focus on developed markets, they have a slightly different investment approach. VEA holds companies from all developed economies except the U.S., while IEFA also excludes Canada. Here's a snapshot of these two international stock ETFs.

Overall, these funds are fairly similar. The main differences are that VEA holds more stocks, including Canadian stocks, and has a lower expense ratio. So you get roughly the same international exposure at a better price. However, either ETF offers a solid option for investors seeking to diversify their portfolio with some international stock exposure.

The Vanguard FTSE Emerging Markets ETF and the iShares MSCI Emerging Markets ETF are both emerging markets ETFs. Emerging markets are those transitioning to developed status.

There are several differences between these funds.

VWO is best for investors seeking low-cost…

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