VEA vs. IXUS: International Stocks Had a Breakout Year. These 2 ETFs Captured It Differently.
Key takeaways
- Both funds serve as core international holdings for U.S.-based investors looking to diversify beyond domestic stocks.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard FTSE Developed Markets ETF is the more affordable option, charging less than half the fee of the iShares fund.
VEA ^GSPC The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) offers a lower-cost path to developed economies, while the i Shares Core MSCI Total International Stock ETF (NASDAQ:IXUS) provides broader global diversification including emerging markets.
Both funds serve as core international holdings for U.S.-based investors looking to diversify beyond domestic stocks. By capturing thousands of companies outside the U.S., these ETFs help mitigate the risks associated with a single-country portfolio while offering exposure to different currency movements and economic cycles. While they share overlapping positions in global giants, their geographic scopes differ significantly, impacting their risk profiles and long-term growth potential.
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.