The Vanguard Total International Stock ETF (VXUS) and iShares MSCI Emerging Markets ETF (EEM) offer different approaches to international investing, with VXUS providing broad global diversification and EEM focusing on emerging markets. VXUS has a lower expense ratio and higher dividend yield compared to EEM. EEM has a higher one-year return but also a higher max drawdown, making it better suited for short-term investing. VXUS is a better choice for long-term investors seeking stability and affordability. Consider the trade-offs between global breadth and emerging market concentration when choosing between these ETFs.
EEM holds a concentrated portfolio of large- and mid-cap stocks from emerging markets, while VXUS covers a wider range of developed and emerging economies with a more diversified portfolio. EEM’s top sectors include technology, financial services, and consumer cyclical, while VXUS tilts towards financial services, industrials, and technology. EEM has 1,214 holdings, while VXUS has 8,602 holdings, reflecting its broader reach. Both ETFs offer unique opportunities and risks for investors to consider based on their investment goals and risk tolerance.
Before investing in iShares MSCI Emerging Markets ETF, consider the long-term performance and risk factors associated with this ETF. The Motley Fool Stock Advisor team has identified 10 best stocks for investors to buy now, and iShares – iShares Msci Emerging Markets ETF was not one of them. Stock Advisor has a total average return of 884%, outperforming the S&P 500. Evaluate your investment strategy and goals before deciding to buy stock in this ETF or explore other investment opportunities recommended by Stock Advisor for potential growth and returns.
Read more at Nasdaq: Better International ETF: Vanguard’s VXUS vs. iShares’ EEM
