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Investment Q&A

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iShares Core MSCI EAFE IMI Index ETF (XEF $47.78)
- $47.78 P/E (TTM): 23.12X Cap: $19.07B
- View XEF Profile
- View Questions on XEF
Vanguard FTSE Emerging Markets All Cap Index ETF (VEE $45.04)
- $45.04 P/E (TTM): 6.04X Cap: $3.62B
- View VEE Profile
- View Questions on VEE
iShares International Select Dividend ETF (IDV $42.00)
- $42.00 P/E (TTM): 27.48X Cap: $7.94B
- View IDV Profile
- View Questions on IDV

Q: Hi,

I have all of my international equity in XEF with a small amount of VEE. I noticed that IDV has performed extremely well this past year and better than XEF. Can you please explain why?

And are the two different enough that it would make sense to own both or is this too much diversification with both being broad market ETFs?

thanks

Asked by Everett on February 11, 2026

5i Research Answer:

IDV and XEF do trade in different currencies and that is part of the difference. The main other difference is that IDV has had a higher weighting in the UK and a much lower Japan weighting. However, Japan has done well so this does not really explain things. The main other difference is focus: IDV focuses on dividend stocks specifically and these have outperformed. IDV has outperformed long term as well. We do not think both are needed and would lean to IDV if just one is to be owned.

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