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iShares Core MSCI EAFE IMI Index ETF (XEF)
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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
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Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
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iShares Core MSCI EAFE ETF (IEFA)
Q: I have held XEF and Vee for years and they never seem to do as well as North American market/companies.
According to portfolio analytics I need more exposure, but these seem to be drags on my portfolio more than anything. There a slight dividend, but there is overall loss on them.
Do you have any other recommendations to get world exposure but with some better growth?
According to portfolio analytics I need more exposure, but these seem to be drags on my portfolio more than anything. There a slight dividend, but there is overall loss on them.
Do you have any other recommendations to get world exposure but with some better growth?
5i Research Answer:
Two ETFs for global exposure that we like are VIU and IEFA. VIU is an all cap, ex-North America ETF which tracks the FTSE Developed All Cap ex North America Index. VIU has an AUM of $3.31B, charges an MER of 0.23% and has a distribution yield of 2.03%. IEFA is another ex-North America ETF which tracks the MSCI EAFE IMI Index. IEFA has an AUM of $99.1B, expense ratio of 0.07%, and has an annual dividend yield of 2.45%. Many international ETFs have been weak the past five years for various reasons, including currency movements. The strong US dollar has really hurt many regions.