Better International ETF: Vanguard VEA vs. iShares URTH
VEA excludes American equities and charges just 0.03% annually, while URTH includes the U.S., but costs 0.24%.
The Vanguard FTSE Developed Markets ETF and the iShares MSCI World ETF offer different approaches to investing in developed markets. The Vanguard ETF excludes US equities, focusing on international mature markets, while the iShares ETF includes US equities as part of its global strategy.
Investors choosing between the two must decide whether to include or exclude the US, the world's largest economy. The iShares fund provides broad exposure to developed nations, including the US, in a single portfolio. In contrast, the Vanguard fund is often used to add international diversification to existing domestic holdings.
The two funds have different uses, according to Motley Fool. The iShares fund offers a one-stop global portfolio, while the Vanguard fund complements domestic holdings with international diversification.
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